The fact enclosed is one that most traders do not know but if you understand it then it can lead you to currency trading success. Let's take a look at the fact and its significance.
Here is the fact and what you can learn from it and it's simply this …
50 years ago 95% of all traders lost and today, the number still remains the same – in the period we have seen huge advances in technology, software, speed of data and better and faster news and it's made no difference, to the number of winners. So winning is dependent on something else which we will look at a moment but lets first look at how not understanding this fact leads to losses.
Now the above leads to some compelling conclusions on what not to do when seeking currency trading success.
Many traders think they can beat the market, with sure fire systems and they all do not work. Forex traders buy cheap, software and use Forex robots or the laughably named Forex Expert Advisors and lose.
Others think that being clever and complex helps but it does not, as Forex trading is simple. You can not predict the market because it's not mathematical it's a simple market of probabilities and there is no hidden code, of market movement as many claim.
Others want to trade breaking news but that does not work either and never has, the market is a discounting mechanism and news stories are immediately absorbed by the market.
So how do you win at Forex trading?
Well we have already said Forex trading is a market of probabilities and in this environment, simple systems work best as they are more robust than complex ones.
Anyone can learn a simple Forex trading strategy in a few weeks or less but the key to winning in having the mindset to apply it with discipline.
The reason 95% traders still lose today, is because human nature is constant and most people simply can not get the disciplined mindset, they need to win at Forex trading – Why?
Because traders can never keep their emotions out of their trading and run losses, change their systems or quit, when they hit a losing run. It's hard to trade with discipline, your emotions undermine your confidence and you deviate from your plan. The reason 95% of traders lose today and will lose in a 100 years time is because human nature is constant.
If you want to win you need to adapt to the unique challenges of the market and learn character practices which are not normal in everyday life to enjoy currency trading success.
Anyone can learn them and we will look at how to get the millionaires mindset for success, in the next article in this series on trader psychology.