“90 percent of Forex traders fail. Only 10 percent succeed”. We all have probably seen this statistic all over the Internet. For beginners to see these numbers might be discouraging, but before you get frightened entering the Forex arena, let’s get to the root of this mind-boggling statistic.
The Role of Trading Psychology
Most beginners might think that the hardest thing in Forex trading is understanding its technicalities. But there are plenty of good trading methods and systems that work, so why does the 90% failure rating still stand today?
If you would ask the remaining 10% successful traders, they would probably say, “the hardest part actually is to have your brain cooperate”. As what Yvan Byeajee said in his book, Zero to Hero: How I Went from Being a Losing Trader to a Consistently Profitable One, “The mind is a fascinating instrument that can make or break you”.
So, what do successful traders have in common?
Patience
Understand that you are not going to find success trading currencies overnight. From learning the basic concept of Forex to developing your own trading plan, patience is your ally. And when you get to the real battle (live trading), the more patience you would need. Wait for the right trading opportunities. Be cautious in entering and exiting a trade.
Discipline
Be a disciplined trader. Do your homework. Prepare for each trading day or week. Study your charts and past trading activities. Moreover, if you come up with a plan, be disciplined to follow it.
Courage
A successful trader knows himself. Courage allows you to be confident in your trading plan, and to stick to it whatever happens. This is also what would separate you from the crowd.
Bottomline
Having a well-defined trading plan is essential, but without patience, discipline, and courage, you will get nowhere. Add these three powerful attributes into your trading lifestyle, and surely, you will reap positive results.
