Though trading on the foreign exchange market is getting more and more popular, it is still hard to distinguish myth from reality.
Ready to learn the secrets of forex trading? Ready to hear the things that successful forex traders will never say?
Simply keep on reading! Also, do not hesitate to sign up for our forex trading course that can help you become a pro in the world of finance.
8 Things Successful Forex Traders Won’t Say
While many forex brokers and traders present forex trading as an exciting and profitable investment endeavour, the truth is that there’s a dark side to forex trading.
Though we at Trading Education believe that forex trading can be a potentially successful business, we want traders to discover the truth about the market.
#1 A successful forex trader will never say “I’m self-taught.”
Though we agree that successful traders can learn an awful lot about forex trading by practicing, it’s highly unlikely that self-proclaimed traders can master forex trading without any extra help. There’s nothing to be ashamed of! To seek help is human.
#2 A successful forex trader will never say “I never lose.”
The second thing you’ll never hear from a successful trader is that they never lose money. Simply because that’s not possible!
Here we should note that to be able to accept losses, one has to trade only money they can afford to lose.
#3 A successful trader will never say “Risk management is not important.”
While losing money is inevitable in forex, risk management can reduce losses. Thus, a successful trader will never tell other traders that risk management is unimportant.
As with other types of trading, determining how much you can reasonably afford to risk is crucial. If anyone tries to tell you that a risk management strategy is not needed, better ignore their advice.
The forex market can be really unpredictable; so even if you are great at analysing signals and indicators, you’ll never be able to avoid risks. Were you able to predict the ongoing pandemic? Exactly!
Since we can’t predict the market, at least we should be able to decide how much we can risk. Without a risk management strategy we will become irrational and emotional — just like prehistoric people fighting for food. But hey! There’s no place for intense emotions, overtrading, and fear in trading!
#4 A successful trader will never say “I am 90% accurate.”
If a trader tells you they are 90% accurate when predicting short-term movements based on chart readings, simply take that claim with a pinch of salt. As stated above, the market is so dynamic that a success rate of over 90% in the long-term is highly unlikely. While some lucky traders win big, we shouldn’t forget that forex is not gambling.
In fact, 90% of traders lose money and quit, while the most successful traders usually don’t hit a success rate of 70%. You can lie to people, but you can’t argue with numbers.
Lying to yourself and others about your chances can only result in bad investments. A good trader doesn’t expect every deal to be a home run. Great deals do occur from time to time, but the forex market is too big and chaotic for them to be reliable.
Thus, don’t put too much pressure on yourself to succeed 100%. The more you want to make a profit, the less likely to win. There’s no place for greed in forex. A great writer may create masterpieces, a great musician may compose amazing musical pieces, but a great forex trader should simply rely on small victories.
#5 A successful forex trader will never say “You should trade actively every single day.”
If you think that successful forex traders trade frantically, think twice. While day traders do trade with high frequency, there are many situations when taking a break from active market trading is the right move to make.
For example, if there is a sudden political event, the market might take a hit, making it wise to take a break till its volatility settles. Sometimes not doing anything can help you achieve more than any Herculean effort.
That’s right! A successful trader has patience. Making too many irrational choices only increases the chances of committing a mistake. After all, the market is not going anywhere and the only one you are rushing to compete with is .
Successful traders are also successful individuals who value their free time and loved ones.
#6 A successful trader will never say “My strategy is profitable in all market conditions.”
“My strategy is profitable in all market conditions”? What a joke! This is the sixth statement that you’ll never hear from a successful market trader.
It takes a lot of practice and hours of trial and mistakes to establish a successful strategy. And yet, this strategy cannot be profitable 100%. As expert John Maynard Keynes said, “The market can remain irrational for longer than you or I can remain solvent. “
When it comes to forex trading, there is no such thing as an infallible strategy that can be successful in any market climate. If there were, all traders would be millionaires like Bill Lipschutz by now.
Thus, you should always follow the market and never miss out on new developments, , and shifts. Follow the trends and avoid fighting battles you can’t win.
#7 A successful forex trader will never say “I know everything there is to know about forex.”
In forex, there is always more to learn; advances in technologies, economic factors, and so on and on. The industry is constantly exchanging, so don’t be afraid to learn new things!
#8 A successful forex trader won’t say “Forex trading is exciting.”
For instance, many beginners start trading forex in hopes of quitting their full-time jobs and making some fast money on the beach. Other traders get excited about fancy gadgets, platforms with advanced charts, and apps with bells and whistles, when all you need to get started is a computing device and internet connection.
Yet, consistent trading can’t be exciting. It’s just work after all! Your trading routine can even get kind of boring.
- Though forex trading is increasing in popularity, there are still many misconceptions and myths circulating online.
- An honest and successful trader will tell you that winning and losing are two sides of the same coin, so don’t believe in 100% success.
- While there’s no formula to success, expert traders advise investing in trading education and self-control.
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