Overwhelming majority of new traders fail and loose their money. What are the successful traders doing differently? Are they using a better trading system, is their money management more sophisticated or is it their psychology that makes the difference?Imagine picking out from the crowd two men that are from the same social background, graduated from the same school and are equally intelligent. You will ask them to trade. Both will get the same start capital and will follow the same money management and trading systems with exactly the same rules.
You would expect they achieve very similar results, right? But you may be surprised. After a month or two one of them may have lost all his capital while the other one may have returned a nice profit.
What can cause such a deadly difference? The trader’s own psychology is the culprit. Even though he should follow the same trading system lowest pip spread in the market, strategy and rules his emotions, his own fear, greed, denial, pride, panic, down tour or euphoria can alter his planned decisions.
Most traders think the right trading system is the winning formula for success. The truth is chocking. The trading system is only around 10% of the success. The money management makes another 30% and the most important, with the whole 60%, is the psychology of the trader.
Emotions
You need to learn to control your emotions and irrational behavior. The fear of losing is a very strong emotion. It is much stronger then the positive feelings associated with the trading gains. Most traders make mistakes, by abandoning their trading system and reacting emotionally to their fear or greed. Sometimes the market awards them for such a behavior and consequently make them incline to trust their lowest pip spread in the market guts and feelings instead of their trading system.
To trade successfully you must follow religiously the trading system and rules you have developed, follow the entry and exit points your system is suggesting and never allow your emotions to change that. The self-control and discipline are the keys for success. If you let your fear or greed to control your decisions, you cannot achieve any significant success in the long run and sooner or later you will loose all your money.
Can you learn to control your emotions? Can you learn to become a disciplined trader? The answer is YES. If you have the burning desire and commitment to succeed, you have the right predispositions for it.
About ForexGen
ForexGen.com is an online trading service provider supplying a unique and individualized service to Forex traders worldwide. We are dedicated to absolutely provide the best online trading services in the Forex market.
ForexGen provides a unique online trading experience based on our intelligent online Forex trading package, the ForexGen Trading Station, including the best online trading system
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