Because they don’t know what they are doing!
There is a huge amount of research and articles written about why traders lose cash trading, but in my experience it comes down to a few key components which can impact your entire trading system and trading psyche:
1/ Knowledge 2/Resources 3/Focus
Like anything you have done in your life you need to know how to do it. Whether it be learning to play an instrument or play a sport. If you don’t have the knowledge then your chances of continued success a very low.
Think about it for a second…..
Why did you go to school for 13 years and then spend another 3-5 years at University?
Why did you spend 3-5 years as an apprentice learning a trade?
WHY?? So you know what you are doing and to make sure you can do your job well. But most importantly so you can make a living!
That’s right everything takes time and your results in any field of endeavour can be traced back to where you learnt your skills.
Let me ask you this question:
Would you prefer to be shown how to sprint by Usain Bolt (the fastest man ever) or by a couch potato who has sure as hell watched a lot of sprinting but has never done it himself?
It’s a no brainer!
Why? Because Experience is Everything.
Sprinting isn’t just running fast…it’s training, it’s mental aptitude, it’s discipline, it’s the combination of many components.
This is very much the same for many careers but in particular FX Trading.
Knowing how to hit ‘buy or sell’ isn’t enough. It may work in the short term but in the long term you’ll get swallowed up by the market.
You need to know how the markets work, why the currencies go up and down, how to analyse the charts & economic data, and then execute with precision….. this is the knowledge that will get you the cash you so much crave and deserve.
That’s where our FX Pro Trader Course and Advanced Pro Trader Course come into play. They have everything you require!
Most importantly though is the Capital Management structure that will guide every trading decision….. you get this wrong then it’s all over before you really ever get started.
Having a back up team with a truck load of experience and resources is only going to further enhance your prospects.
When I say Resources I mean both ‘Human’ as well as ‘Physical’ resources.
When you start trading you’ll find that you’re often second guessing yourself. You need a sounding board for your trade ideas, to assess your analysis and discuss trade execution.
It’s exactly what all of our sporting hero’s have at their fingertips. They have coaches and the best resources they can find.
Why? So their performance can peak for longer periods of time.
If you don’t have access to ‘readily available resources’ then you are a static trader in a dynamic market and that’s a recipe for limited success.
You need to be able to cross reference trade ideas with actionable market analysis in real time. And this is where our ‘Live Trade Zone’ comes into play.
Then to further enhance your trading you can sharpen up your trade execution with our trading software resources. But that’s down the track.
Having the desire to make cash, by itself, isn’t enough to make you successful. You need to continually focus on the next best trade…. you need GOALS!!
When I’m looking for trading opportunities I have only one thing in mind… Where’s my next 2-5% return coming from? Is this trade going to get me closer to my 10% monthly target?
That way when I assess the opportunity I am focused on the goal of making money….not just trading for the sake of it.
Trading to make 5 pips can be fun, but I’m not interested in fun…I’m interested in the next 10% monthly return and that’s how I’m going to build a capital base and make 100% per year.
Check out this spreadsheet as it will help you get your focus: T4T Forex Goal Calculator
Now everyone’s time frames and risk appetite are different so you need to tailor your goals to your own personality and time horizon.
This spreadsheet will enable you to adjust the starting capital and the return you’d like to achieve. It will then spit out how much you need to make to reach these goals.
As soon as I look at it I become focused.
Why? Because I have specific GOALS in front of me. I know what I am here for….and it’s not to make 0.05% because that won’t even feed my chooks!
What generally happens if you don’t have any knowledge, resources or focus?
Well no surprises here folks… you become another ‘negative’ statistic. In this goes for anything not just trading. If you approach anything without any structure, knowledge or understanding then of course you’re going to fail…..just ask the countless millions of traders that have done in it the past.
Mentally you won’t be prepared to trade…. and in then end you’ll be your own worst enemy.
Now the internet is a great resource for many things but when it comes down to specific advice for careers you need to be careful what you’re reading and who is providing the information.
Do as much research as you can to make sure whoever is providing the knowledge and resources has the necessary experience to guide you. Don’t end up with the ‘couch potato’ and a head full of pain and pockets empty of cash.
Or you can start with T4T and get started on our Pro Trader Membership for as little as $49.95 a month.
Isn’t it time you got serious and started to invest some time and money into developing the necessary knowledge, resources and focus to get you where you want to be in a years time from now!
If you have any questions please feel free to contact me and I’ll answer any questions you may have.
Remember we’re here to help!