As a participant and student of the global markets for over 20 years, I have always been fascinated by what makes a trader successful and what differentiates the winners from the losers. Trading success I define as one who can consistently make money while avoiding major drawdowns. If one listens to the media or looks at any of the advertisements for retail currency trading on the internet, one would think this is an easy game which provides a road to daily riches. As we all know or learn very quickly, that is not the case. Success rates in this game are very low and there aren’t many retail forex traders who make money on a consistent basis. In fact and unfortunately, a majority of retail fx traders within a few years blow up their accounts once or multiple times. Why is that? If I had to define one characteristic that separates profitable traders versus non-profitable ones it is PSYCHOLOGY!
To many, that comes as a surprise. A lot of us, especially newcomers to the currency trading game, think if we can only find that right system, trade entry signal, the latest indicator or some guru who is going to post trade ideas profitably we will have the magic tool to make a living in this market…..