If you want to get the same results as a professional forex trader, you have to behave like one. Unfortunately, there’s a lot of myth and speculation surrounding forex trading; therefore, it can be difficult to understand the truth about what does and doesn’t work, especially with false statements floating around. We want our readers to know the real truth about the market, so stay with us to find out 8 things that you’ll never hear a successful trader say.
“I Taught Myself”
If you ask any trading professional about the key to success, they’ll tell you that a solid trading education is one of the most crucial steps to becoming a profitable trader. None of us are born with knowledge about forex trading, so we all have to start with the basics regardless of our IQ score.
While there are many different resources for information online, like videos and articles, one of the best ways to learn is to ask other traders for help. Online courses, one-on-one training sessions, and trading forums are considered to be some of the most interactive tools out there. Keep in mind that every trader had to start from the same place, so don’t be afraid to seek help with topics you might be struggling with.
Finally, you have to expect that mistakes are a natural part of the learning process. Remember that you’re only human and think of any bumps in the road as a learning experience. The good news is that everyone has the ability to become a profitable forex trader if they can remain disciplined and work on developing healthy trading habits, so a little hiccup every now and then doesn’t have to be a big deal.
“I Don’t Lose”
A successful trader will never claim that they don’t lose money when trading because losses are an inevitable part of the process. Even trading legend George Soros lost $1 billion after Donald Trump’s surprise election win back in 2016 – and if it can happen to him, it can happen to anyone.
What traders need to know is that trading success isn’t measured in short-term wins and it’s possible to have a higher loss ratio but to still walk away with positive profits. When thinking of trading success, you should look at the bigger picture with consistency over time. You will not win every single time and any trader that claims to is only lying to you to boost their ego.
“My Predictions are 90% Accurate”
The forex market is highly volatile and full of surprises, which makes it impossible for any trader to accurately predict what is going to happen over 90% of the time. In fact, most successful traders claim to be accurate about 70% of the time or less, which is far more realistic.
Keep in mind that trading is different than gambling, so it is possible to increase your chances of success by analyzing chart patterns and data, but you still won’t be able to hit a 100% success rate. In forex trading, you win some and you lose some, so don’t put unnecessary pressure on yourself to win every time.
“Risk-Management Doesn’t Matter”
While forex traders can’t be right 100% of the time, they can increase their chances of success by practicing effective risk-management rules. This involves only risking money you can afford to lose and taking other steps, such as setting a stop loss in case things don’t go in your favor. Even if you think you are making good decisions, risk-management helps to soften the blow if you lose money and it should never be downplayed as an important step to forex traders.
If a trader tells you that risk-management isn’t important, then they’re giving out some truly terrible advice. Even the big fish take precautions to limit the amount they could lose on their trades, regardless of how much money they have sitting around. You don’t want to make the avoidable mistake of risking too much and losing big-time. Sadly, this is a common trading problem that results in big losses for many unsuspecting beginners.
“The More You Trade, the Better”
While trading more often might sound more productive, it actually works against you. This is because there are times when it’s best to take a break from trading, for example, when political news is about to be released. Some traders do thrive in volatile environments, yet it is inherently more risky to trade during these times.
You also run the risk of overtrading if you become addicted to the general rush from trading. This works like any other addiction and can cause traders to make bad investments for the sake of entering a trade. It’s better to know when NOT to trade so that you don’t lose money in bad market environments.
“My Strategy Never Fails in Any Type of Market Condition”
No trading strategy can be profitable 100% of the time – it just isn’t possible. Some strategies will work better than others in different kinds of conditions, but you have to remember that market conditions are constantly changing. A method that was working well in one condition may become obsolete once things change, and methods that didn’t work before may become a better option later on. Overall, you can develop a solid plan that works well in several different kinds of market conditions, but you’ll never find a 100% foolproof option because it simply doesn’t exist.
“Forex Trading is Always Exciting!”
You might have seen forex trading painted in a glamourous light in movies, where investors tend to jump up and down shouting in glee and frustration. Advertisements also seem to make things more exciting with flashy cars and hours, men surrounded by beautiful women, and other exaggerations. In reality, online trading can get a little boring. After all, most traders work in a quiet environment without any distractions, where they are kept busy analyzing charts and whatnot. This doesn’t exactly make for an exciting evening, but it’s important to remember that trading is still a job (that you can do in your pajamas).
“There’s Nothing I Don’t Know About Forex”
Regardless of how many hours you’ve poured into your trading education, how many books you’ve read, or the number of YouTube videos you’ve watched, you can’t know everything there is to know about forex because there’s so much information out there. Technological advancements, changing economic factors, and other developing factors also introduce new things to learn constantly.
Professional traders might have more experience and knowledge, but they would need a computer for a brain to actually acquire all of the knowledge that’s out there about trading. Even once you become a more established trader, you should never stop pursuing knowledge about the industry by reading articles, researching different strategies, staying up to date on economic data, and keeping a close eye on new developments and technological advancements.