Forex Day Trading Exposed | The Myths And Truth About Becoming Profitable

Day trading sounds pretty exciting for a beginner. Wake up, place a few trades, earn some money
and go about the rest of your day doing what you want to be doing. Well, trading offers the possibility of financial
freedom and an amazing lifestyle. But it also comes with a lot of risk. That’s why today we’ll talk about the
truth about day trading and I’ll try to reveal to you the correct image of forex trading. 1. The first truth is that forex trading is not
a get rich quick scheme One thing that is definitely common to all
traders who are losing money in the markets is that they have unrealistic expectations. If you have $500 to trade with, there is no
way on earth you are going to be able to live off your trading. When you first heard about trading i bet you
were promised very high returns on very small investment amounts. You were told that you need some small capital
to make a lot of money. Fund your account with 500 dollars and you’ll
be able to gain 2-3 thousand dollars per week. Is this possible? Well… Not quite. The only way that is possible while day trading
the forex market is to trade on small margins taking on high leverage, be correct in all
your price movement predictions, trade constantly, and put back your profits into trades. This is an ideal situation that is not likely
to happen. You cannot simply join the forex market today,
put in a small investment, put in very little effort, and expect high profit levels. You have to take into consideration what you
can realistically expect to make each month or week, given the amount of money you have
to trade with. Advertising has rapidly expanded the retail
market in forex. This has brought many people into the game
who are on a quest to get rich quick (or with little effort). This unfortunately is very rare indeed. Trading takes patience and requires consistency,
and not a gambling mentality. Anyone who approaches the trading world as
some get rich quick scheme is very likely to fail and loose a significant portion of
their capital within a very short period of time. Any real successful forex day trader will
tell you that trading is one of the most difficult things they have ever done. Forex trading is simple, but it will never
be easy. If it was possible to turn $200 into $1 million
in three months everybody would be doing it! When you are a beginner in trading you will
lose at first. We all did. Consider this as an investment in yourself,
the cost of training for your new business. Realizing that forex trading will not make
you a millionaire overnight is the first step. Statistics say 90% of all forex beginners
lose approximately 90% of their capital within 90 days of trading. If you do not want to be part of that statistic
you will need to have realistic expectations. 2. The second truth: experience counts
Experience is one of the most important factors behind successful traders, and experience
is purely an outcome of time. What happens over this period that is so critical? • well, learning from mistakes is one thing
• improved knowledge, skills and understanding could be another
• improved knowledge of your own strengths/weaknesses is another thing
• pattern recognition • experience in different market conditions
• conditioning of behaviors and responses…these are gained with time. For every trader, getting to the stage where
you have acquired sufficient market time and gained the required level of competence is
a primary goal. How long is this period? It will be different for different people. We are all unique, with our own particular
set of circumstances. We are, however, talking years here – and
not days. This is a serious endeavor, as all truly profitable
goals must be. One of the most important strategies a trader
can adopt is to do everything possible to make sure that they stay in the game long
enough to get good at it. This comes hand in hand with the first truth. We talked before about get rich quick schemes. One common feature of get rich quick schemes
is that they will be marketed as investment opportunities that require no special skills
and no formal education and still make you millions of money. No, it doesn’t work this way, sorry. You will need to learn how to accurately read
price charts, how to read, translate, and generate trade signals, how to analyze the
markets, and how to accurately spot price trends in order to be successful. So, there are no shortcuts to forex trading. It takes lots and lots of practice and experience
to master. There is no substitute for hard work, deliberate
practice, and diligence. 3. The third truth: without solid money management,
you won’t achieve consistency Most people who approach trading discard money
management because it is less attractive than indicators, systems, and practical trading
strategies. Nevertheless, this is the core foundation
of trading success. Without solid money management even the best
trading system will cause losses. Money management is probably the most important
and most overlooked part of building a successful career in trading. The fact that most traders lose money in the
markets is not really surprising if you consider that most traders also have no money management
plans. The basics of money management are derived
from another simple trading truth: the outcome of any single trade is unknown. Each outcome – profit or loss – has a
certain probability for occurring. The conclusion from this truth is that streaks
of losing trades will occur, even if your trading system is profitable. The purpose of money management is to make
you survive the losing streaks and able to recover quickly. Money management is a crucial element of trading
the financial markets especially in times of volatility. It is a defensive concept that protects your
funds so you can trade another day and underpins profitable performance. Anything can happen at any time in the markets
and using a sensible money management technique ensures that the trader will be able to trade
again no matter what happens. A major reason why traders will fail even
when using a profitable trading system is because the money management they are using
simply does not give their system an edge long enough to play out over time. What sets successful traders apart from those
who fail over the long term is their money management skills. The basic aim is to manage risk by limiting
market exposure, at any given time, to acceptable levels. 4. The 4th truth: your success or failure is
100% your responsibility Day traders tend to take the credit and give
blame for success or failure. When you earn money it was because of your
hard work and brilliance. When you lost money it was because of a bad
fill, a slow computer, an unexpected news story, bad quotes or a slow market. If you want trading to be your career, your
business, you need the truth. Your success or failure is 100% your responsibility. Think back to a time when you had a losing
trade, or made an error with your trade execution, or had a bad trading day. Who or what was responsible for the result
that you got? The market? The trading platform you were using? The weather? One of the most important factors in becoming
a high-performing trader and achieving and sustaining trading success is that you are
responsible for your trading results. The results that you get in your trading are
created by you. Understanding that the level of your trading
success and the results you get is absolutely under your control, is fundamental to becoming
a high-performance trader, and achieving high levels of consistent success. It is easy to find other cause for your poor
performance; to create stories that shift the focus away from yourself and onto external
factors. If you’re doing this, you practically take
yourself out of the learning and development loop. By not taking responsibility for your actions
you don’t enable yourself to reflect on what you did and what you could do differently
next time. If you take responsibility then you will learn
from your mistakes and eventually eradicate them. If you blame anything outside of yourself
then you give your power away to that thing and you will repeat your mistakes. Losses are inevitable. Accept that. Learn and move on to the next trade. 5. Number 5: trading is a game of uncertainty
and adversity Trading the markets is full of uncertainty. The market conditions can change from day
to day, and trading strategies that have worked so well for so long can suddenly appear to
stop working. Trading is a game that is won by those who
can best deal with frustration, disappointment, and adversity. Since trading has harsh realities full of
losses, missed opportunities, drawdowns, and unforeseen events, those who can deal with
these things will perform the best. Trading will always have ups and downs. The reality is that unless you can see into
the future, you won’t be able to predict every market move. You will have losing trades and, if you can’t
accept that no matter what you do, you’ll never know everything that’s around the
corner, then you’ll be unable to adapt to the ever changing conditions of the forex
market. If you want to reduce the risk of the unknown
you have to be prepared. Serious business requires serious planning. Taking the time to study and control what
you can reduces a big part of the uncertainty, because you have identified and planned for
the “worst case” scenario. If you enjoyed this type of content, don’t
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