I once knew an 72 year old lady, who was a sheep farmer, hardly read the news and had no formal education yet she made huge gains trading Forex turning a mere $5,000 into over $70,000 in just over a year. On, the other hand, I knew a guy with a degree in mathematics who tried three times to make money in Forex trading, wiped his account out within a month and lost around $16,000.
I have told you the results but if you only knew their profession and educational ability, you would probably have assumed that the little old lady stood no chance against the guy with the maths degree; if you thought the guy was odds on to win, you need to read the rest of this article. I will now explain, the traits you need to win and the reason why most traders lose money.
The guy with the mathematics degree, approached the market with the idea he was bright and could beat the market. He was intelligent, so he believed that gave him the right to success but he soon got a few losses (as all traders do) and hated being wrong so what did he do?
He refused to cut them and let his losses run which is the cardinal sin in Forex trading and he got wiped out. His ego made him lose, he thought technology and intelligence could beat the market and when he got the wake up call of few successive losses, he couldn’t control his emotions and this led to his demise.
The lady who made money was a simple, straightforward person who was highly disciplined in running her farm and she took this over to her trading. She wasn’t educationally the smartest – but she had common sense.
She knew she would have losses but from her education, she knew that if she kept them small, she she could get some trades she could follow, to cover them and make an overall profit. If you learn the basics of Forex trading, you will find the best system you can use is simplistic and the key to winning is to have a humble attitude and discipline and that;s exactly why she made money.
Why You can Win at Forex Trading
If you have understood this article you will see that the knowledge you need to win at Forex trading is easy to learn and the real key to your success is respecting the market and trading in a disciplined fashion, success trading FX is within reach of anyone if they learn trading the right way and hopefully this article, will have given you an idea of the right way to approach trading global FX markets.