/6/25 · In this guide, we explore how to make money with forex and whether or not this online trading scene is profitable. How to Make Money with Forex Quick Steps If you’re strapped for time and want a quickfire guide on how to make money with forex – check out the walkthrough below /6/23 · Forex traders can lose money by trading too aggressively, particularly when bucking obvious trends. Your first, safest priority shouldn’t be gain but rather not losing what you already have. When you open a Forex trade, stick with it for a while. Second-guessingEstimated Reading Time: 5 mins /10/6 · Then the losses accumulate and the win ratio is decreasing, but more than that, the trader loses confidence, self-esteem, his analysis is good but trading is not. It should be clear that analysis and trading are completely different. Even when you do all the best your trading could not be blogger.comted Reading Time: 4 mins
Why my trading is not profitable? Profitable trading
It is an undeniable fact that the vast majority of traders reading this are not consistently profitable. Some last a few months in the market, while others last a few years or more before finally throwing in the towel. In fact, just last week I had a trader email me saying that she had been trading forex unsuccessfully for over 8 years before joining our service!
Over the past 7 years of running DTFL, I have had the opportunity to interact with over 10, forex traders in some way, shape, or form. Having had so much interaction with retail traders gives me quite a unique position to see the most common points of failure.
Over those years, and having dealt with so many aspiring traders, I have seen 3 traits that are a plague, literal gangrene that eats away at the possibility of becoming a full-time trader. First, we have to understand what cognitive dissonance is to understand how it relates to trading, why am i still not profitable trading forex.
What is a good example of cognitive dissonance you might ask? Think about someone you know who smokes. In their mind, why am i still not profitable trading forex, they know for sure that continuing to smoke cigarettes why am i still not profitable trading forex shorten their lifespan, but on the other hand, they love to smoke.
There is a constant rationalization in their mind which allows them to continue the action that conflicts with the information they know to be true about the effects of smoking on their health. How does the theory of cognitive dissonance affect retail traders? As it relates to trading, we are going to focus on the part of the definition that I have underlined above. After dealing with close to 10, traders, what I say next is not opinion, but rather a very common observation.
Even still the vast majority will continue to buy the same get rich quick junk over and over. This is a great example of a belief being opposite to the action. If someone in that situation stops the hunt to make an easy buck, then they have to come to the realization that they had been wasting both their time and money.
Solution: The key point of this topic is quit system jumping in search of a holy grail or magic bullet! You must come to the realization that trading success can only be found in the same manner you find gold….
at the end of a shovel and ton of hard work. Find something that you believe in and trust, and then stick to it. Regardless of what you do, if you invest less than 3 months learning something creditable before quitting on it, then you are doing yourself a disservice.
Have you heard of it? There is literally NO DOUBT, which if someone follows through on the entire program they will certainly be in much better shape by the end of the 90 days.
Let me ask you this though, how many people actually follow through with the entire program? Sound familiar to the forex market? Here comes the unpleasant truth many will not want to hear.
There is no magic bullet; there is no easy fix to trading! That is worth repeating! There is no easy solution or magic bullet to becoming a profitable forex trader. It took me close to 4 years before I was profitable! In fact, the reason I think it took me so long to be profitable is that I spent two years trying to find the easy fix to trading. A few months back I wrote an article about 3 keys to becoming a profitable trader. In that article, I list 3 specific points that can really help any struggling trader get on the right track and I would encourage you to read that after finishing this post.
All the points I list in that article share one core belief which is that trading is a long-term process, and success only comes after months or years of hard work and dedication. Have you ever had a drawdown? If you have been trading for more than a few weeks, then the answer to that question is a resounding yes! This is one major reason that trading is such a difficult game to master or become successful at.
What happens to you when you are in the middle of a series of losses? Emotion begins to take over, and mistakes begin to happen. Below is a list of 3 very common mistakes new traders begin to make as they start to experience multiple losing trades in a row. This list could be why am i still not profitable trading forex longer but here are 3 of the most common and often most detrimental.
You start to question your entire strategy, even if you have seen it work for months or years. Looking for random setups that have nothing to do with the strategy you are trading is commonplace.
The trouble with these 3 points is that it only compounds the original problem, as it will often lead to more losses of even greater size due to the increase in leverage.
This downward spiral will many times result in the trader blowing up his or her trading account. Dealing with drawdowns is tough, but they are often NOT the main reason someone blows up their account.
If you reflect back on anytime you have blown up your account it often starts with a few losses. After a couple of losses, human emotion begins to push you into 1 of if not all of the 3 common mistakes addressed above. Solution: Understand that losses are part of the business! The greatest traders in the world have losses, and the greatest traders in the world have drawdowns. The only difference is the great traders learn to handle drawdowns.
That is not my opinion; it is a fact, why am i still not profitable trading forex. There is no way around this, and the only true solution is accepting it as part of the business. Many times in trading, the solution to one problem will help solve another.
In the article I linked to above, I address the importance of why am i still not profitable trading forex a long-term plan for growing your account.
I would encourage everyone to write out a month by month account growth chart using a reasonable monthly growth percentage. Having an account growth chart written out that you can refer back to will help you avoid the mental pitfalls discussed above, as it will allow you to focus on your long-term goals. Focusing on long-term goals helps to put a series of losing trades in perspective, thus giving you a better chance to weather the storm of learning to trade forex.
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Another great post my guide. I will send this link to all my buds who are struggling with the issues you mention. I read everything you post. I often wondered why almost no body can trade even a good system like yours. The lights when on after reading this. Thank you. Member Login About Us. Day Trading Forex Live — Advanced Forex Bank Trading Strategies. by Sterling Suhr 7 Comments. Cognitive Dissonance Among Traders First, we have to understand what cognitive dissonance is to understand how it relates to trading.
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Futures, options, and spot currency trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose.
No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results, why am i still not profitable trading forex.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors.
Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information, why am i still not profitable trading forex.
Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results. Designed by. Close Window Loading, Please Wait! This may take a second or two.
Not Profitable in Trading? Here Are 7 Reasons Why! By Adam Khoo
, time: 37:4710 Ways to Avoid Losing Money in Forex
/6/23 · Forex traders can lose money by trading too aggressively, particularly when bucking obvious trends. Your first, safest priority shouldn’t be gain but rather not losing what you already have. When you open a Forex trade, stick with it for a while. Second-guessingEstimated Reading Time: 5 mins The short answer is yes, Forex trading is profitable. The slightly longer answer is yes, trading in the Forex market is profitable but chances are you won’t make any money. How do I know trading Forex can be profitable? Because I’ve been swing trading Forex since and make blogger.comted Reading Time: 6 mins /6/25 · In this guide, we explore how to make money with forex and whether or not this online trading scene is profitable. How to Make Money with Forex Quick Steps If you’re strapped for time and want a quickfire guide on how to make money with forex – check out the walkthrough below
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