The one fact most traders ignored!

 I been trading for years, so many strategies and EA's has been tested, so many online seminars attended, but nothing seems to work in my trading. Why is it that it is too hard to beat the market? some of us maybe trading fine for the next couple of months then here comes the losing streaks and our capital is gone. Is it the market or is it your trading strategies that causing you to fail over and over again, well we cannot blame that market because we cant change how it will behave, so if we want to change something we have to look upon ourselves. It is how we deal or react with market moves is what matters in trading, I believe most traders fail because they only focus on winning and ignore how to handle their losing trades. Most traders are excited when they bank 10 or 20 pips from the market but when the market start to move against their trade they are hesitant to cut the loses, they hold on to the belief that market will come back soon in their favor, well this maybe true sometime but this is not the case all the times. Most traders are only focused in finding winning trades but ignores or not give much emphasis in controlling the risk.

As I mature as a trader I came to realize and understand that risk management is as equally or even more important than having winning trades, why? once a trading psychology coach says "its that loses that hurts not the missed opportunities" and I totally agree, we got to be decisive in cutting our loses small, if the market does not move in your favor close your trade or let the market hit your SL and wait for the next trade opportunity, it is easier said than done because letting go on a losing trade could be psychologically hard because human mind are not accustomed on being a loser, we always love being a winner, but we need to realize that this is not the case in trading, loses are inevitable in this profession and accepting small loses in order to protect our capital is not bad at all, trading is just a numbers game, if you can keep your loses small and have more or bigger winning trades then you will be profitable in the long run.

Why you still fail in trading until now?

If you are trading for 2 or more years and yet you still keep on getting negative results over and over again, in spite how many times you change strategies, buy every indicators or system available online yet your trading account getting wiped out in the end. If you are into such a situation it only means that there is something wrong in what you do in your trading and you have to know what it is otherwise you will just end up in a cycle of losing money no matter how many years will pass.

When I started to learn online trading particularly FOREX a few years back I have this belief that trading is a hard profession and it is okay to lose money and being unprofitable for a year or more, it is part of the learning process so to speak. But recently I don’t think it is really necessary to spent years of practice to be able to succeed in this profession, I believe that a year of learning and practice in trading will be sufficient enough to make you a consistently profitable trader.

The key to succeed in this profession within a short period of time is to established a solid foundation right from the start, a house without good foundation will be washed away easily when a flood came or crumble to the ground when an earthquake occur. Unfortunately most traders start in this business with the wrong mindset, they just learn a few basics about trading and they start trading with real money. Most traders at the start does not really understand how hard trading profession is, and so there are many traders that lose their capital easily in the market and worst about it is that they just continue trading as if nothing is wrong in what they are doing. The line between trading and gambling is so thin and that most traders cannot differentiate the difference.

For newbies that dont want to be part of the majority of traders that keeps on losing money repeatedly, I strongly suggest to spent time in building a strong foundation first about trading or if you are already in trading but still keeps on losing money then maybe its time to reassess everything and if necessary make major renovations of your existing methodology or even better build a new methodology based in a totally different perspective that can possibly bring good results in your trading.

It is the start of a new year, I wished that this will also be a good trading year for all of us!

Good luck for the year 2020 and may God bless us all!