I once knew a 72-year-old lady, who was a sheep farmer, barely read the news and had no formal education, yet she made huge profits trading Forex and turned just $5,000 into over $5,000 in just over a year. $70,000. On the other hand, I knew a man with a degree in math who tried three times to make money in forex trading, destroyed his account within a month and lost about $16,000.
I told you the results, but if you only knew their profession and level of education, you would probably have assumed that the little old lady didn’t stand a chance against the man with the math degree; if you thought the man had a chance to win, you should read the rest of this article. I will now explain what traits you need to win and the reason why most traders lose money.
The loser
The man with the math degree approached the market thinking he was smart and could beat the market. He was intelligent, so he believed that gave him the right to success, but he soon ran into a few losses (as all traders do) and hated to be 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 was 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 several consecutive losses, he couldn’t control his emotions and this led to his downfall.
The winner
The lady who made money was a simple straight forward person who was very disciplined in running her farm and she took this over to her trade. She wasn’t the brightest educationally, but she had common sense.
She knew she would have losses, but through her education, she knew that if she kept them small, she could get some trades that she could follow, to cover them and make an overall profit. If you learn the basics of Forex trading you will find that the best system to use is simplistic and the key to winning is to have a humble attitude and discipline which is 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 disciplined success trading FX is within the reach of everyone as they learn to trade the right way and hopefully this article has given you an idea of the right way to approach trading global FX markets.
