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Experts believe that it takes 6 months to fully grasp all of the concepts in the Forex world. However, statistics point out that even with knowledge, 95% of traders in the Forex market, in particular, will fail and lose their account money within the first 365 days of their trading careers.
Dismal statistics, right? 95 out of 100 traders losing all of their money and dropping out of the Forex market within 1 year? That’s got to be a worse success rate than any other financial market in the world.
Forex Plays on the Mind
Forex markets process a whopping $5,000,000,000,000 per day. That is five trillion dollars. Every day – five days per week. Just think of how much money people can make from such an incredibly liquid market.
Because of its size, people often fall into the trap of entering the market too quickly. When we say “entering” – we don’t mean placing entry orders or initiating trades. We are referring to getting involved in the live trading of currencies too quickly.
At the end of the day, it’s a mind game. And if you are looking for a financial market which is the most demanding on the mind – the Forex market is it.
How to Overcome the Mind Games
So far, you’ve probably thought that we seemed a bit doom and gloom about Forex trading. In reality, if you can get the emotional side of trading out of the way – the light at the end of the tunnel is definitely there.
Whilst Forex has made some people lose all of their money, at the same time it has made a number of people extremely wealthy. The key differences between these lots of people are:
- Some can get their emotions under control and others can’t.
- Wealthy traders learn continuously and never give up.
- Risk management is a huge part of some trader’s strategies.
It’s all about strategy. Whichever strategy you choose to use, make sure that it is a robust, successful one. In other words, if you are currently losing more money than you are making, think long and hard about why you are in the Forex market, to begin with.
Are you treating it like a game? Are you there for the long haul? Do you need to revise your trading style to better suit your desired outcome? Answer all of these questions, reposition yourself, and aim higher than you ever imagined before.
