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 1)  Read This First

 

 2)  Why SO IMPORTANT To Keep A Trading Journal ?

 

 3)  Why Are You Always Late & Wrong With Trend ?

      

 4)  When You STRUGGLE when Account Is Small ?

     

 5)  Is Using Stop-Loss Really Protecting Your Capital ?

      ( HARD TRUTH ! )

 

 6)  Be " Slightly More Patience Instead " & Win More !

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4 Simple Changes You Can Do Now To Improve Your Forex Trades Significantly ( If You’re Still Struggling )

Having been trading the forex market for slightly more than 5 years now……( since I quit my day-job as a technician previously )

I am pretty much clear about the undesirable factors that caused most traders to struggle with their trades …AND ultimately FAIL.

Obviously, I have personally committed these undesirable mistakes too during my newbie days…

Moreover, ever since I started this blog sharing Forex Trading Strategies ( based mainly on Price Actions )…

I have been communicating actively with many fellow readers ( whom are aspiring traders ) via emails all these years.

And believe it or not,  9 out 10 times…..

…..These emails sent by readers are mostly expressing their frustrations & other ( challenging ) problems they encountered while trying to master this forex trading game.

And by reading through the few hundred of emails so far, I have spotted a few common mistakes that pose the biggest obstacles for most traders ….. to achieve the success ( profits ) they want out of  forex trading.

Well….as I mentioned earlier on I was ONCE a struggling trader as well during my beginner days – Hence these common mistakes are NOT surprising to me anymore definitely.

BUT….for anyone whom are starting out to explore on this ” Supposedly Super Profitable  ” Forex market…

OR….for those that have ” Already Entered ” into the Frustrating stage now and possibly on the verge of giving up his/her dream of succeeding with forex trading..

Then the 4 common mistakes that I am revealing below could definitely help steer them onto a smoother path and minimizing further ( undesirable ) obstacles in near future.

Of course, it would be useless if I only point out the 4 common mistakes though…

Any problem WITHOUT a solution is as good as better off  NOT giving at all…..agree ?

Hence, I would be pointing out the 4 common ( nasty ) mistakes here in this post…

As well as providing Some Simple & Effective Solutions to overcome or even eliminate them as efficiently as possible !

That’s better right …? * smile *

Alright….let’s get started now then .

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Succeeding Factor #1 :   Trade ONLY The ” OBVIOUS & PROFITABLE ” Set-Ups

( Never ever Presume / Force any trades )

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Most traders whom had already fallen into the ” struggling ” category….

One of the leading reason is that they tend to OVER-ANALYZED the forex market.

As such, even when there is NO Proven or Profitable Set-Up present in the market at all…

They would rather ” presume ” that there is IN FACT one such set-up in the market now for them to trade..

And just simply jump on it and ” trade ” hoping to profit end of the day.

Well….why are they doing this then ?

Simply because they ” die – die ” must trade the market – As & When they open their forex charts !

Somehow they have the Misleading Information that as long as they see ” some set-ups ” in the market, they can make profits out of it …

If they DON”T trade it, they will be LOSING out of those Pips ( Profits ).

Indeed a very fatal mindset & attitude to have and it is NOT beneficial at all ……for anyone who is serious about surviving in the forex market in the long run.

So what if You are also committing this mistake now ?

How do You overcome it before You LOSE Your entire account ( & experiencing some detrimental effect as a result ) ?

Not hard actually…..just do these :

1)  Only trade the ” Obviously NICE ” Set-up – You know those that formed nicely on the market at the exact timing You want and at the Ideal Price Level You want as well…

Everything just seems to be RIGHT about that certain Set-Up…and it is Obviously A Profitable One.

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One Example Would Be This :

Perhaps the market has been trending ( fiercely ) up-ward for sometime previously..

And it has now reached a price level where there is a MAJOR SELL-OFF ( resistance point ) before in the market..

At the same time, You even spotted a ” Head & Shoulders ” forming in the market – Which is still at the EARLY stage and there are a lot of potential rewards ( Pips ) for You to grab from SELLING this Set-Up.

Your confidence is naturally very high and nothing seems to hold You back at all for this SELLING set-up.

And THAT is the kind of ” Obviously NICE ” set-ups I am talking about here…* smile *

If You have been trading the market for a while now, then You can possibly relate better to the scenario I described above.

If You’re still a newbie still trying to get out of the MAZE & Tonnes Of MISLEADING forex information online…

Don’t worry as sooner or later, You will also start to experience the ” high ” of trading such OBVIOUSLY NICE Set-ups in Your Demo Account too perhaps.

When that happens, do take note of  all the ” whys ” as You can use that to constantly ” remind Yourself ” to spot for such NICE & Profitable set-ups in future.

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Succeeding Factor #2 :   Trade With The BIGGER Time-Frames

( Ignore anything less than 30 minutes )

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Another common ( & deadly ) mistake that most traders would eventually commit is to believe that there is a lot of money to be made in the lower time frames…..( such as the 1 mins, 5 mins or 15 mins )

This so because they thought there would be more ” trading opportunities ” for them to profit from.

Yes…..there is no doubt that smaller time-frames are ( very often ) filled with all kinds of pattern formations & other signals from those technical indicators..

However…..many signals present in the market ….DOES NOT mean they are ” Good or Reliable ” for profitable trading though.

In fact, those many trading opportunities that You found in the small time frames (  such as 1, 5 or 15 minutes ) are nothing more than randomize movements or what most traders known as ” Noise “.

They are NOT reliable to be based on at all.

But Why so ?

Just like a quote that George Soros always mentioned in this books :

“…..It doesn’t matter how often You are right or wrong – it only matters how much You make when You are right versus…… how much You LOSE when You are WRONG ! “

As long as You lose LESS than Your WINNINGS…….” Consistently “.

You will most likely end up with Profits in Your trading account end of the month..

Very simple logic here……agree ? * smile *

So by trading on a smaller time frame – You’re also looking at a much smaller Price Projections in the forex market..

Hence, the Take-Profits Or Stop-Loss value would have to be small too…..or else it would be ” Unrealistic “.

That is why whenever traders use the smaller time-frames for trading, it would be for Scalping for quick profits.

Aiming 5 -15 pips each time and get out quick – Because they know it is very risky to stay in there for long and would only put them in an disadvantage.

Having a Take-Profit target of 5 – 15 pips can be easily achieved….I agree.

But on the other hand, You CANNOT trade without a Stop-Loss too…….right ?

You need to protect Your capital should the trade go against You too much and too fast . ( which is very common in a highly volatile forex market )

So considering this, are You going to use a 5 – 15 pips for Your stop-loss as well ?

If You are….then You would be feeling the anxiety of getting such ” TIGHT ” Stop-Loss hit….again and again….UNNECESSARILY.  ( there isn’t enough room for the trade to breathe at all )

On the other hand, if You’re using anything more than 5 – 15 pips…..it is NOT giving You a reasonable Risk/Reward ratio.

If You LOSE just once…..You might have to WIN 2 times or even more to recover Your losses.

So it is definitely NOT the way to trade for long term success…..and You know it too.

To overcome this problem, don’t bother going anything lower than 1 hour time-frames ( if You’re an intra-day trader )

In fact, for myself….I would only go for at least the 4 hourly or BIGGER time frames .

Most of my trading decisions & analysis are derived from the 4 hourly and daily time-frames in fact.

Not only am I getting more reliable signals & price actions from the market with these time-frames..

….Thus increasing my winning accuracy & percentage.

And most importantly, I DO NOT have to be ” glued ” to my chart all day staring and over-analyzing the market – Only to get frustrated and experience more losing trades.

I rather go out and enjoy the day……eat some yummy food with my love ones and at most check the charts every 4 hourly. ( either with a smart phone loaded with trading platform or bringing out my handy laptop )

It’s that **simple.

So….if You’re still holding onto the mindset that You can make a lot of money from the smaller time frames because You heard somewhere ( from someone )…… or You think that there would be more trading opportunities to make You rich faster..

But only end up getting very drained from those unfruitful analysis and over-analyzing of the market..

Losing 8 out of 10 trades….

Then it’s time for You to discard that method and switch to trading the much BIGGER time-frames too such as the 4 hourly or daily.

Trust me…..the signals would be far better off than those You get from the smaller time frames.

When You get reliable signals….You can also make more reliable & accurate prediction for Your trades…..

That’s for sure.

So what would happen to Your monthly forex profits then ?

You tell me….! * smile *

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Succeeding Factor #3 :   Try Only With The Money You Can Afford To Lose !

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Any trading is just a game of probability after all…

And I hope You know this by now…

You can WIN……and You can LOSE too…

Moreover, it has been **Statistically Proven that at least for the first  6 – 12 months….most traders would keep on losing !

Well for those that choose to risk more money….of course they would lose more ( suffer more ) during that period..

That is why it is a common practice that before we go LIVE…..at least prove to ourselves that we can actually make ” consistent ” profits for at least 2 -3 months before doing so.

Even after 2 -3 months of ” consistent winnings ” from a DEMO account, it DOES NOT mean he/she is ready to trade in the LIVE forex market though.

This is because when REAL money is concerned, it has a direct & significant IMPACT on our emotion.

When You know You would lose A Lot Of Money ( maybe $10k )…..The MORE this emotions would affect You.

On the other hand, if You know that even if You lose….it is at most $500 and You can afford to lose that amount..

It is NOT so impacting on Your emotions. ( and I mean in a negative way )

That is why whenever some fellow readers told me they they are ready to go LIVE for their forex trades.

I will advise them to start SMALL …..as little as $300 – $500…

And then build up the account from there..

In this way, IF they are competent enough to build up this account size to maybe $1k …then subsequently to $3k…or more..

That kind of achievements would be VERY ( VERY ) Beneficial to his/her trading confidence as time goes by…

And this is exactly how we nurtured into a more ” mature & confident ” trader as we trade more and more…

We are human beings after all….and no human beings would like to LOSE in anyway.  ( be it money or in any competitions )

That is why when You trade with money that You CANNOT AFFORD to LOSE…

You would be very ” Emotionally Attached ” to all Your trades…

And that is when You start to make ” Illogical ” decision which sabotage Your trades Big time.

Maybe You’re in a profits now…..but because You’re trading with money You ” CANNOT Afford to lose ” and it is a BIG amount…

You are feeling FEARFUL….. that if You keep holding onto this winning position, maybe You would lose them all by tomorrow if the market reversed.

And so, instead of riding for 100 pips which You intend to initially….

…..You choose to EXIT EARLIER and with a measly Profits of just 35 Pips.

When this happens, You are not achieving a good Risk/Reward ratio for Your future trade because there is NO consistency anymore.

Because initially You’re aiming for 100 Pips Take-Profits and intend to use 60 Pips Stop-Loss…

But You exit earlier because of  FEAR at 35 pip instead.

So the next time You lose…You would be losing 60 Pips or more…..not getting a good risk/reward ratio anymore.

Moreover, BECAUSE You’re so ” EMOTIONALLY Attached ” to Your trades..

When You’re LOSING….You will be very ( VERY ) Reluctant to Cut-Loss too !

That is already a proven ” deadly ” mistake committed by most traders.

That also explains why traders would resort to the extreme and totally REMOVING their Stop-Loss for that losing trade…

And in the process making the losses from a 60 Pips to a 250 Pips now and going against them further and further each day.

But they are still NOT willing to CUT though……

Instead….they are ” HOPING “ that the market would turn back again so that they can exit with minimum or no loss at all.

Hmmm…….unfortunately, the only outcome is that the deficit grows bigger and bigger until they hit a MARGIN CALL from the broker.

Very common & ” brutally deadly ” mistake most traders face and this is also the main reason for their account to encounter the undesirable MARGIN CALL !

So please, only trade with money that You can afford to lose.

Start small…and slow build up from there…

Your confidence and emotion would benefit tremendously from it. * smile *

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Succeed Factor #4 :   Get A Proper Forex Education

————————————————————————————————————————————

Some newbie traders would rather learn from a proper forex education and get guidance to help them kick start their trading.

On the other hand, there are also traders who choose to ” Self – Educate  & Learn Through Trial & Error “…

Well…some achieve the success they desire after some efforts….

Whereas some failed miserably and to the extreme of Losing A few accounts with more than $10k or more in it…

There is no right or wrong way on how You choose to start though…

BUT…there is definitely one important & LOGICAL considerations here You must know about.

You see….

I myself is one such trader whom can be considered :  ” Self – Educate & Learn Through Trial & Error “..

Nothing is smooth sailing right from the start while trying to learn & master any trading game..

Because not only do You need to have a few proven trading strategies to trade the market..

But You must also control Your emotions too or what traders known as the ” Right Trading Mindset “.

For myself, I have lose a few thousand dollars too  ( when I bursted 2 trading accounts ) during my beginner’ days.

Even on the urge of giving up this dream to succeed with this forex trading game and earn a full-time income out of it.

But after much perseverance & intensive learning,  I begin to see ” small BUT consistent ” gains & profits progressively month after month…

Eventually hitting a point where I can be considered ” confident & competent ” to get a certain ROI every month to treat it as a full time income .

PS:  In case You’re wondering what ROI am I getting on a monthly basis, that would be between 30% – 50% now (sometimes hitting 70%  when the market is trending strongly and nicely ). And that is already good enough for me to rake in at least $15,000 – $25,000 a month now. ( at the time of writing this post )

With a 5 Figures income finally achieved, that is also the moment when I ” finally “ decide to quit my day job as a technician and trade fx full time.

So although I am a Self-Learner…..but the amount of effort & time I have spent and put in are literally not ” overnight or few weeks thingy “.

Not an easy journey….but NOT a really tough or impossible one either I must say.

Definitely worth the effort end of the day when I can now make a full time income trading the forex market finally. ( and making a nice 5 figures income out of it too * smile * )

For You guys out there reading my post now..

If You’re still struggling with Your forex trading or have already LOSE a significant amount of money so far..

Then it really pays to at least get a proper forex education to help overcome the elements needed for You to succeed.

Try to go for one that is based mainly on the more powerful Price Actions strategies would be advisable.

That’s because like I mentioned before in the other posts on my blog ..

Price Actions are essentially the Rawest form of data that is both ” Reliable & Accurate “ to be based on for our trading decision.

No matter what technical indicators or fundamental news You’re relying on..

Once You combined with the more powerful Price Actions of the market, it could definitely give You an ” Edge “.

Most importantly, when You KNOW You’re basing Your trading decision on ” More Reliable ” date from the market itself ( Price Actions )…

You would be trading more confidently too…..and that would help eliminate the undesirable Emotions resulting from Greed & Fear.

End of the day, that would inevitably increase Your odds of winning from most of Your trades as well. * smile *

So do not hesitate anymore ya…

If  You think You would be better off  getting guidance from a proper forex education instead of  wild-guessing your trades or entering into the market using ” feelings or the You-Think attitude ….

Stop doing that now before burning even more hard earned money You have..

Get a proper fx education, Master it……and be a Confident, Competent & Profitable forex trader in no time too !

Trust me….the moment You can call yourself a ” confident trader who is competent enough to profit a certain ROI every month “….

Your decision to seek guidance from a proper fx education would make You feel ” glad ” that You have chosen to do it back then.

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