When you first were introduced to forex trading what made you take the leap and want to learn? For most of us, it was the idea of fancy cars and easy profits. This is the perception that is portrayed on the Internet of what trading the forex markets is like. While this sounds like an amazing endeavor to pursue, many are blindsided by the realities of being a professional trader.
In this post, we want to look at some of the reasons why over 90% of traders fail. This statistic seems quite large. But when you think about it, this can be applied to any other area of life.
Becoming a professional at anything takes a great degree of time and effort. For a second lets compare trading to professional sports. Most professional athletes started their career when they were very young and had a vision for where they wanted to be. They worked tirelessly to become a professional in their chosen sport. Not all people who play sports at a competitive level are selected to play at a professional level. It is only the few that work harder than everyone else and go after their goal with massive ambition that succeed. These people believe in themselves and have a vision for their life.
Be a Professional
Trading the markets is no different. If you want to become a full time trader it requires a lot of dedication and hard work. Do not expect to be making large returns in the first few months, or even the first few years. Be patient and trust the process.
Adopting a long term mindset suppresses the desire for immediate gratification. Seeking immediate gratification is what causes people to overtrade, emotionally trade and ultimately lose money.
Most people want immediate gratification and this is why they fail at new business ventures. Which brings me to my next point. Trading is not like a traditional brick and mortar business. You do not have a physical location, inventory, you do not have to make sales, no staff and no products. This clear difference is why most people do not take trading seriously. It is not like a restaurant where you have to show up at the location to sell your sandwiches and then pay your electricity bill.
Your trading revenues and expenses just come in a different form. Your wins are your revenue and your losses are your expenses. If you can think about trading in this way you will be much better equipped to succeed in the long term. Trading is a real business and it needs to be treated like one. So what allows business to succeed in the long term? A plan!
Develop a Sound Plan
A plan for your trading business will be the guideline that you follow before you execute any trades. You should consult your trading plan before taking any entries and ensure that all of your criteria is met. Sticking to a plan and system is what allows any business to be successful.
For a traditional business, before getting any sort of financing from a bank or investors, a business will have a plan laid out that shows how they plan to profit in the years to come. The same should be true for your trading business. You need a trading plan for how you plan to make your profit over the long term. The more you stick to your plan and do not deviate, the more likely you are to make money and become successful.
So what now?
One way to help keep you on track with your trading plan is through automated trading systems. If you can program your rules into a step-by-step system you can avoid the temptation to trade emotionally. This allows you to stay disciplined and build good trading habits. Professional traders stick to their strategy with military grade precision. If you can have a robot execute your trades for you, you remove yourself from the equation. You do not have to worry about taking entries that do not match your trading plan. Everything about your plan is predefined. If you are looking for some tools and strategies to help you on your trading journey, take a look at Evestin Forex. Here we have pre built trading systems to help you get started with automated trading. Why not trade a strategy that has already been proven to work on a live trading account? To learn more about our strategies check out this link where you can see our live portfolio of trades https://www.evestinforex.com/forex-trades
With anything in life, there will be winners and losers. Trading the markets is no different. Not everyone will be a successful trader. If you can implement the ideas we outlined in this post you will be better equipped to become a successful trader long term.