Why Do Proven Forex Trading Systems Fail So Often?
by Christopher Temple
So why some Forex Traders fail? I've been thinking long and hard about that.
On the day I started forex trading (years ago), I thought that I would quite soon be in the money. I was entering a multi-million dollar online business where a smart lad like me just couldn't fail to make loads of easy money. Yes, I had read that more than 90% of forex traders fail, but hey - I'm different - I'm a college graduate! If I took time to learn the best forex trading techniques and carefully avoided the obvious pitfalls, I'd be a top forex trader in no time at all!
To start off I had invested a lot of money in the very best forex training course I could find, it was a complete set of 13 dvd's, and cost me in excess of $4500. I recall that there were over 13 hours of best-quality forex tuition, several useful software applications and some free forex signal software, and everything was already set up and ready to go with my passwords etc I also received an established spread-betting account. Now that was very handy indeed, I could now take advantage of tax free trading!
I also got access to the author's private web site and could review his daily progress. Every evening I would review his trades and listen to his comments, and learn how many pips he had made (or lost). Most days he made around 20 - 35 pips - mostly in the GBP/Dollar market. So I thought, if he can do it, I can do it! This would be very easy!
The forex course covered every facet of trading, including preparation to trade, keeping records, no-money paper-trading, as well as the psychology of the forex trader. I carefully watched the entire dvd set which took me about two days. After that, I watched some of the dvds again, mostly those covering actual forex trades and particular forex techniques. I was ready to begin.
So I logged on and added cash to my spread-betting account (I think it was about $4,000) but I was already dreaming of the fast cars and speedboats I would soon be driving.
That was a few years ago. So do I now have even one of the cars or the boats I dreamed about? Well actually - no! Have I made pots of money? Again, and very sadly, not so far! To be honest I've lost quite a lot of money! I do still retain the confidence I originally had in forex as a great way to make a really serious online income, because I've met and talked with such a lot of wealthy forex traders. I still believe that I can do it because I've seen it happen repeatedly. I decided it must be my trading system, what else could it be?
I invested more money, bought the best online forex trading systems - but only after I had very carefully checked their testimonials and ensured that actual traders were making serious money with them. I also bought books - many books. Books on forex trading, books on forex training, even books comparing forex trading systems. I also bought several more forex training courses and guides, I studied day trading systems alongside longer-term trading systems - I was absolutely determined to make money in forex trading.
Did I at last succeed? No! But at last I began to think about what my problem was and why I've failed so appallingly. I began to think that I might be the problem! It hurts a lot to say it, but I really think it could be me.
I had come to realize that my own individual style and my own methodology, they were letting me down. Even when I was using a proven winning trading system, I would still lose money. And for a long time, I didn't even recognize it. I did even more research.
I now learned that it is possible to obtain a winning forex-trading system for not much money at all, and that even one of the top courses can cost surprisingly little. There are a whole range of inexpensive forex resources and training available online. It is nearly possible to totally set up to make some serious money in the online forex markets.
What does that mean in this context? What was I missing? What's the difference between a winning and a losing forex trader? How else could I become the total trader? It didn't take very long to get that question worked out!
Once I really took the blinkers off, I realized that it just had to be me, who else could I possibly blame? I had to accept that I am not remotely as clever as I once thought. I soon identified plenty of personal flaws that were holding me back. I had no resolution, I lost concentration, I lacked dedication, I was not honest with myself, and I needed more self-discipline.
I had got my hands on yet another book - well booklet actually. It was free (and worth every penny). It came as a bonus when I bought some trading software through my favorite forex trading software web site. This little booklet didn't attempt to tell me anything about winning forex trading systems, it dealt entirely with the secret ingredient that is missing from the mental toolbox of many forex traders, and is probably the reason why the majority of them lose money. (Come to think of it, it's missing from the mental toolbox of traders in most other financial markets too).
What did I learn by reading this booklet? Well - I learned that the problem really was inside of my own thick head! Like many forex traders I am totally unable to stick to the systems I have learned, and which I know do work. That's why I continued to fail. Luckily my new bookl not only confirmed where my problems lay, it also showed me a variety of very easy (and obvious) ways to solve them. I'm starting to trade profitably now!
I owed a favor to the site owners, so I've re-written their little booklet and expanded it. They're still giving it away freely to purchasers of anything on their site. It's now called The Missing Link, and it's still free and it's still worth every cent
Christopher Temple is a long time trader who writes regularly on
Forex Currency Trading Systems in his search to help beginners Learning Forex Trading Online. Visit the links to learn about his book. Click here for other unique 'Forex Trading System Reviews' articles.
