There you sit, your hundred dollar bills vanishing before your very
eyes. Your a beginning Forex Trader and your in over your head, you
chalk up loss after loss maintaining your pride that you'll turn things
around with the next few trades. One thing leads to another and you've
managed to drain your entire account in less than 3 months. This is the
most common story associated with aspiring Forex traders, thus the
extremely high attrition rate. Why do so many aspiring Forex Traders
fail? Lets break it down:
1. Lack of Knowledge
2. Lack of Discipline
Obviously
knowledge is a broad concept, but the mission of this article is to
expose why some potential Forex traders fail and others succeed, thus
knowledge cannot be under-stated. Anybody who is good or great at
anything in life usually has more knowledge than their peers in relation
to at least one aspect of the subject matter. This is obvious, one must
be knowledgeable especially concerning their potential lively-hood. I'm
glad we all agree on this. However, lets dig deeper into this issue of
such a high attrition rate. The number is incredibly high for a couple
of reasons:
1. Ease of Electronic Trading
2. Potential for huge payoffs via leverage
The
Forex Market is being advertised more and made easier to use everyday.
This is great news for any product or market. However, this will simply
translate into an even high attrition rate for the Forex Market. Why?
Because the number of potential traders will increase from advertising
and ease of electronic trading. This increase in numbers will consist of
9 out of 10 "new" traders having zero knowledge in all critical areas
of Trading the Forex Market. These 9 out of 10 "new" traders, have one
goal in mind, "win money". In turn, they have no risk management
structure, no technical perspective and certainly no trading philosophy
are defined strategy. Therefore, these "new" traders that will be
contributing to increasing attrition rates might as well go hit up their
local casinos for some blackjack, slots and roulette. Seriously, have a
fabulous time, order drinks and stay in the Ace's suite for the night.
If you not going to take the time to gain the necessary knowledge to
trade the Forex, don't waste your time and money.
On the other
hand, if your one of the few who never back down and have a deep inner
desire to succeed in everything you do, including learning how to trade
the Forex Market, you have a magnificent journey ahead of you. So many
times, unknowing people will bad-mouth the Forex Market as something
negative or something to stay away from. The truth is, when one takes
the time to gain the knowledge and perspective of learning how to trade
the Forex Market, they will inevitably find that one CAN indeed
consistently profit large amounts of money from Trading the Forex
Market. In other words, for most it will remain a mystery, however for
the select few who push forward with gaining the necessary knowledge,
they will uncover a world of profiting from price action and crowd
movement. The question is, do you want to take the necessary time to
gain knowledge and learn the ins and outs of the Forex Market?
Find
resources that not only provide tons of great material for beginning
traders, but also provide an ongoing educational process. Forex Trading
Success is developed through learning about Perspective, Strategy and
Philosophy. Find Traders who have been through the journey of Forex
Trading beginner to Forex Trading professionals and are on a mission to
bridge the gap between aspirations and success.