A complete guide to simplifying your Forex trading by Nial Fuller
My students’ number one issue is that they over-analyze and think too deeply about the markets. As a result of this over-analysis they are on the wrong track; many are still trying to trade with messy lagging indicator based trading systems or inflexible Forex trading “robot” systems. It is very common for beginning or even seasoned traders to be emotional wrecks; stressed and panicky like an out-of-control gambler with no plan. Today’s lesson will guide you in shifting your trading strategy and your trading psychology from complicated to simple.
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Changing your beliefs about Forex trading
– Step 1 – Understanding why you’re losing money
The first thing you need to do in order to change the way you trade is to change your beliefs about trading. If you are losing money consistently, it’s probably safe to say that you are thinking about the market all wrong and that you need to totally change your beliefs about what Forex trading success is all about and how to achieve it.
There really are only two reasons why people lose money in the markets: over-trading and over-leveraging (risking too much). The reason you are losing money in the markets is because your beliefs are not in-line with reality. Trader’s who over-trade and over-leverage their trading accounts, are simply trying to control the markets, whether they are aware of it or not. Unfortunately for these traders, the reality of Forex trading is that YOU SIMPLY CANNOT CONTROL THE MARKET, the only variable you can control is yourself, that’s it. So, it goes to reason that if you want to make money in Forex you have to learn how to control yourself, because
I promise you that no one else is going to be able to control your actions in the market; not me or any other Forex educator, you are the only one in charge.
Right now I want you to stop reading this lesson for a minute, go take a look at your trading account history for the last month or two, take a good long look at it, and decide for yourself whether it reflects the habits of a successful price action Forex trader. Did you do it? If not, you need to before reading on.
I’m willing to bet that if you are one of the masses of losing traders, you saw a lot of trades in your trading account history and you probably also saw inconsistent risk amounts between trades. These are the hallmarks of inconsistent traders who over-trade and over-leverage. Your trading account history should reflect a calm and confident trading mindset rather than that of an erratic gambler; you need to make sure that every trade you take is one you would feel confident explaining to me based off the concepts in my trading course.
You should be proud of your trading track record, and meticulously maintaining your Forex trading journal should be something you are passionate about. If you get a good enough track record over a period of three months or more you can find people to fund you, so don’t worry about not having a lot of money right now. I promise you that if you focus on mastering your trading strategy, and not on making tons of money right away, the money will eventually follow.
– Step 2 – Accepting your new beliefs and moving forward
Next, you need to accept that you are trading too much and risking too much.