Currency Trading Success - The SIMPLE Reason Why Most Traders Lose!
       By: Sacha Tarkovsky
Posted: 2006-06-26 23:02:38
The reason most traders lose and never achieve currency trading success is often seen as a lack of discipline, however this is not the major reason, it’s only a minor part of the problem.The major reason is a lack of “concentrated focus”, this takes some explaining (as most traders are unaware of it) so let’s look at it in more detail.What is concentrated focus?If you want to achieve currency trading success you need “concentrated focus” and this means focusing on how and why markets really work and what you have to do to win.Most traders simply don’t do this and lose.Let’s look at what it involves and how if you apply it, you can achieve currency trading success.1. Work smart not hardIn many industries to achieve success the more you put in the more you get out in terms of rewards, this is not true in currency trading.What you need to learn is that to achieve currency trading success involves working smart, not hard and using a simple system that should take very little time to apply for profit.You can achieve currency trading success in under an hour a day and make triple digit annual gains! Simplicity is the key to achieving currency trading success.To repeat work smart not hard, don’t create work for yourself!2. Trade with probabilityToday, there is a huge industry that tells us predictive theories work and you can pick market bottoms and tops with scientific accuracy – no you can’t, so don’t try!The other big myth is day trading.You can try as hard as you want but the odds are not in your favour in day trading, as you will never have enough profits (or big enough profits) to cover your inevitable losses.You need to trade longer term – this is where the probability of success is highest and the ONLY Way you will achieve currency trading success.The lesson here is don’t spent time with theories that will never make you money they may be clever and cute but you wont make money.3. Ego problemsThis is a major problem and traders who have ego’s get killed.The problem is, many traders think their smarter or bigger than the market and can impose their will on it and make money by being clever.Of course, the reality is, the market is always right and only you can be wrong.Many trades can’t accept this and the harder they try to beat the market by being clever the more they lose.A trader with an ego or who thinks their smart will never achieve currency trading success.4. Cut losses but also accept huge gainsThis is a well known phrase and it’s true.The easy part is cutting losses (simply set your stop before you enter your trade) the harder part is running your profits and this is why the majority of traders never achieve currency trading success.No matter how hard they try they can never hold a profit. They either get stopped out or bank a profit early.The ONLY way you will achieve big profits is by focusing on the long term and not the short term swings of equity against you.It’s hard to sit on a profit for months or years but that’s what you have to do. Most traders can’t do this. They move stops too quickly or snatch profits.If you want to achieve currency trading success you can’t bank early – You need to hold and focus on the long term.5. Don’t chase your tailMany traders have good systems, but fail to stick with them through periods of drawdown. So what do they do?They override the systems signals or change it for new one. Big mistake!It’s a well known fact that after a period of drawdown, profits occur (if the systems logic is soundly based) but many traders lack patience and want to force profits, this of course will never give them currency trading success.If you have a sound system don’t “chase your tail” by constantly chopping and changing!If you have confidence in your system then stick with it.Focus on the reality of trading and adapt!Many traders through lack of focus try and force gains try and be too clever, this is because they don’t really understand how the markets work and what is necessary to achieve currency trading success.Learn the above and win bigTo achieve currency trading success involves a simple approach, focusing on how and why markets move, developing a trading method that can be applied with discipline, to reach the currency trading success all traders’ desire, but very few achieve.RememberConcentrated focus means just that, focus on what is needed to win and concentrate in these areas.Forget your ego, and pursue currency trading success with confidence in your ability and apply it with iron discipline and you WILL succeed!
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