Why Do Even The Best Forex Trading Systems So Frequently Fail?
So why do a large number of Forex Traders eventually fail? I was a failed trader, and here is why...
Back when I decided to start my forex trading career (quite a few years ago now) I honestly thought that I would be making big money very quickly indeed. After all, I was entering the monster online currency market where I could hardly fail to make good money. I had investigated the market thoroughly, and admittedly I knew that in excess of 90% of forex traders fail to make serious money, but I did not believe for a single moment that this might include me! My attitude was that if I took the trouble to study the best forex trading techniques and avoided the pitfalls, I'd soon be a top trader too!
I put my money into the best forex training course I could track down, it was wholly dvd-based, and cost me $4500. There were about 14 hours of good quality forex instruction, and useful software applications, free forex signals feeds, all set up with my user names, passwords etc I also got a forex spread-betting account. That was very attractive - I could use tax free trading!
I also got bonuses like permanent access to the writer's own web site where I could connect every afternoon and review his daily reports. I could study his trades and hear his explanations (and sometimes his excuses), and learn how many pips he had made that day. He usually made around 22 - 35 pips - most often trading the GBP/Dollar market. My reasoning was that anything he could do, I could do too! This was going to be very easy!
My new forex trading course covered all aspects of trading, including preparing to trade, keeping accurate and useful records, testing systems by paper-trading, and also trader-psychology. I took my time in checking out the course over a couple of days, then I watched some of the dvd's again, mostly those covering actual forex trading and actual forex techniques. I decided I was ready to begin.
So I logged on and added cash to my spread-betting account (I think it was about $4,000) but I was already dreaming of the fast cars and speedboats I would soon be driving.
That was over 3 years ago. Do I now have that Mercedes or the Ferrari? Sadly no! Have I made a fortune? Well not yet! In fact I've lost some money - well lots of money actually! I haven't lost confidence in the forex market as a vehicle to make money online, I've met too many forex traders who make good money. I know it's possible, I've seen it done many times. I wasn't doing it though - so I blamed my system!
I stumped up even more money, I invested in the best web-based forex trading systems - after I had very carefully studied their testimonials and seen that other traders were making some serious money from them. I also bought even more books. Forex trading books, forex training books, even books listing and reviewing forex systems. I even bought another forex training course and some financial guides, I studied day-trading systems next to longer-term trading systems - I was totally determined to succeed in making money in forex trading.
Did I make any money yet? No! But I began to suspect where my problem lay and why I'd failed so completely. It really hate to admit it, but I felt I might be the problem! Little old me.
I had come to realize that my own individual style and my own methodology, they were letting me down. Even when I was using a proven winning trading system, I would still lose money. And for a long time, I didn't even recognize it. I did even more research.
I now learned that it is possible to obtain a winning forex-trading system for not much money at all, and that even one of the top courses can cost surprisingly little. There are a whole range of inexpensive forex resources and training available online. It is nearly possible to totally set up to make some serious money in the online forex markets.
Almost? Almost? What's missing then? What's the difference between a winner and a loser in the forex world? Who else could I consult about becoming the total and complete trader? I didn't take long to work that one out!
Once I took the blinkers off I realized that it had to be me. I had to admit to myself that I am not nearly as clever as I thought - I soon identified a whole boat-load of personal deficiencies that prevented my success. Words like resolution, concentration, dedication, honesty, self-discipline, all came into my mind. I had not used sufficient of any of them!
I had got my hands on yet another book - well booklet actually. It was free (and worth every penny). It came as a bonus when I bought some trading software through my favorite forex trading software web site. This little booklet didn't attempt to tell me anything about winning forex trading systems, it dealt entirely with the secret ingredient that is missing from the mental toolbox of many forex traders, and is probably the reason why the majority of them lose money. (Come to think of it, it's missing from the mental toolbox of traders in most other financial markets too).
What did I learn? Well - it was obvious that the problem is inside of my head! Like the majority of forex traders I am just unable to stick to the systems I have learned. That's why I (and most forex traders) continue to fail. But luckily my new booklet not only pointed out my problems, it also showed me some quick (and obvious) solutions. I'm trading a lot more profitably right now.
I owed a favor to the site owners, so I've re-written their little booklet and expanded it. They're still giving it away freely to purchasers of anything on their site. It's now called The Missing Link, and it's still free and it's still worth every cent
Christopher Temple is a successful trader who writes regularly on Forex Currency Trading Systems in his search to help beginners Learning Forex Trading Online. Visit the links to learn about his book.
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