Most Fail Because They Cannot Accept This Key Point

I teach forex for a living and it never ceases to amaze me that people don't think the next key point is the key to forex trading success. If you don't accept this key point and mentally prepare for it, you will lose too.

When I look at the forex education online much of it makes me laugh. You have vendors selling products that promise extra ordinary profits for no effort, with hardly a loss at all but this is not the real world - it's the fantasy world of them selling simulated track records backwards knowing all the data.

Real life trading is a bit harder you don't know what will happen and losses have to be confronted and dealt with.

The Reality

The reality of forex trading is no matter how clever you are how good you're trading system you are going to suffer drawdown and losses and most traders cannot cope with them.

Even the best traders will lose for weeks on end sometimes, that's just the way forex trading is. This doesn't mean you can't win, you can - but you need to face these losing periods and keep these losses small until you hit a home run.

Sound easy?

Well if you trade already, you know it's hard but the way to do it and stick on course until you hit a home run is as follows:

Being Disciplined and Hitting Home Runs

First you need to accept as part of your essential forex education, that losing is part of winning.

Don't let them hurt your ego or get angry it's not personal! Then, you need to make sure you trade with discipline, you will only ever do this if, you know the forex trading systems logic and have confidence in it so if its not your own learn it.

The ability to keep losses small is the key. To do this always assume the worst, place your stop and leave it - never run a mental stop. In most cases if you run a mental stop, you are tempted to hang on to long and think the loss will turn around and this is a fatal mistake.

Like a good football team your success is built on defence - keep it tight at the back and don't concede too much and if you have a sound system, sooner or later, it will hit the big trades you can run to cover your losses.

So the moral is keep losses small, take them cheerfully and see them as your overhead, in the quest for success.

Always Remember

You can be clever you can have a good system but if you are not disciplined taking your losses and keeping them small, you will lose.

In terms of forex success you have to lose to win; this has always been so and always will be so don't fight accept it and your forex trading strategy with good money management and discipline, will lead you to the currency trading success you desire.

How Do You Know Who is Really an Expert?

Anyone can claim to be a Forex expert advisor but most are not. So what Forex expert advisors deliver and how do you spot them? Lets find out...

Most Forex Expert advisors have computer software they have programmed which they claim will make you money - but the vast majority of it is based on unsound logic which has no chance of working.

The problem is most of the systems are presented with a hypothetical back test as evidence of the systems money making power.

This though proves nothing, as the vendor knows all the prices - the exact tops and bottoms and can buy and sell, knowing these facts. It's no wonder some of the track records would put the best Forex fund managers in the world to shame. The problem of course is there not real.

Just because someone can make a simulation profitable means nothing. That's why the system has probably not been traded by the vendor. If it was as good as they say they would have one and in fact they wouldn't sell it for $100 - they wouldn't need to, they would be making to much money to bother.

So forget these get rich quick methods that don't work and seek out a forex expert advisor who has a real track record or something worthwhile to teach you so you can devise your own.

If you find a mechanical forex trading system with a real track over a few years, just check the logic, make sure you understand it and can trade it with discipline through losing periods.

Despite the fact that most novice traders go for an automatic system, it's a fact that most serious forex traders do not use pure mechanical trading methods, they have human input on - the trade set ups and risk exposure and this really is the way to trade in my view.

Forex expert advisors are out there, who have made real money or can teach you Forex trading strategies to get the odds on your side - but they are a minority.

Most vendors hope the novice Forex trader falls for his simulated track record and the trader gets wiped out - don't fall for them, shop around and find a real expert who is a trader and has traded real money.

Anyone Can Learn to Win But 95% of Traders Lose Why?

Forex trading is simple to understand and easy to learn yet, 95% of traders lose. There are two main reasons for this and we will look at both here...

First let's start with a fact to make you think:

30 years ago 95% of traders lost and 95% lose today despite the huge advances in communications, speed of data, quality of news and the power of computers and there testing power - the same ratio lose, so all the advances haven't helped.

You can't beat Forex with technology and the fact is simple systems work best and always have, as they have fewer elements to break than complicated ones.

So if you work hard or try and be clever it doesn't guarantee you success.

You may now well be asking...

If it only takes a simple system to win, anyone can do that and yes they can - but they must learn to apply it with discipline.

Discipline is the key!

Most traders can never trade in a disciplined fashion and the reasons they can't are they require that, not only do you need a good forex education but you are fighting your emotions when you trade and let them get the better of you and you will lose.

Normal behaviour we take for granted in society is fatal in forex markets. Let's look at some examples to illustrate this:

- You need to trade in isolation, away from the herd and this is hard, as we are like to be with the majority and not feel on our own.

- You cannot consult an expert, as trading success comes from within - your knowledge and the confidence you have in it and an expert can never give you that.

- There are no set rules in the market, you make your own, trust them and survive by them.

- We all hate losing, it wounds our ego but unless you learn to lose and keep your losses small you will never win.

Now all the above make trading a unique challenge.

Sure you can become disciplined - but don't let anyone tell you its easy - it isn't.

Of course, you wouldn't expect it to be, with the rewards on offer - but if you are disciplined and you have a sound logical method, applying it with discipline can bring you rewards which can change your financial future forever.

The choice is yours:

You can learn Forex trading the right way, or you can listen to the so called gurus and experts, who tell you it's a walk in the park and lose.

Make an effort - invest in a sound Forex education and you will have confidence and discipline and win - it's as simple as that. You can do it if you want to and the choice is yours.