Why do many traders succeed while other fails?

I absolutely still face these emotions! Less than an hour ago I had a trade end at breakeven for $0, when just 24 hours ago that trade was up hundreds of dollars!! Things like that effect the best of us, but if you have confidence in your method you should be able to overcome it. And if it’s not your own method your trading then just demo trade or backtest it until you are confident!

The way you know your trade has fully ended is also by backtesting and demo trading. You don’t have to squeeze every single pip out of your trade, but if your trading results are based on closing your trade out at 100 pips (or any other criteria) and you panic on a retrace and exit before 100 pretty often then you might be losing money in the long run. If your evidence for trading a system is based on 100 pips, then exit at 100 pips or do some more testing based on lower levels.

Hey Phil,

Thanks again for your detailed reply. This helps a LOT, believe me!

I did have a ‘maybe’ odd question for you. Now, I am not a US citizen but I am thinking, if you are a full -time trader, how do you get taxed? Did you have to fill in tax related papers when you signed up for your account because up here in Canada, we don’t need to.

So if one does become a full-time trader, how do you get to either not or at least pay a very LITTLE amount of tax on what you win in forex?

Might be a dumb question but it’s a question :smiley: lol.

That’s not a dumb question at all!

I won’t go into detail about the specific US laws since your not in the US anyway, but I didn’t have to fill out anything with Oanda.

When I fill out my tax forms I simply report my earnings on a nice little government form called “Gains and Losses from Section 1256 Contracts and Straddles.”

That’s all there is too it, it only takes me about 5 minutes per year to do! I honestly don’t know how the government knows if I’m telling the truth on the form or not, but it doesn’t matter anyway because I am. :slight_smile:

So Phil,

If the government doesn’t know anyways, you can go on unemployment (collect), declare nothing of your Forex revenue as they are not declared by your broker nor your bank and be a double winner HAHAHAHAHA :stuck_out_tongue:

Evil mind, I know :cool:

If your not making too much on forex trading you could do that (I wouldn’t recommend it, of course :)), but once you start building your account up and depositing large checks it wouldn’t work anymore.

In the US any deposit of over $10,000 (I think that’s the amount) is reported to the government by your bank, so eventually some government agent is going to come knocking at your door wondering where all that money is coming from. :slight_smile:

And I will make sure to direct the knocking from my door to your pool Phil :wink: LOL!:stuck_out_tongue:

A very nice way of saying it Phil!! :slight_smile: :smiley:

You don’t have to squeeze every single pip out of your trade, …

This is very true.
Greed for a few extra pips can destroy your trade!! :eek:

True words spoken, tymen.
Greed got to me with a position in Crude Oil, yesterday.
The outcome was…
it did not only destroy my trade…
it destroyed 1% of my capital on top of the profits my trade did have. Because of greed I didn’t cash out and within minutes the whole thing turned on me because of NY open.

This very correct , that is make different between successful trader and fails trader are greedy and patience , good trade starting from patience and fails trade starting from greediness

Forex is a business of give and take we get profits and loose too . Here success is not always for us if all win who will loose. Some times we get profits unexpectedly other time we loose even we have good plan for trading . So forex is not a certain earning.

If you want to make money in forex, you must deposit money first, then lose it; repeat, until you realize that you’ve lost a lot of money and you become more disciplined in your trades… hopefully you break even, and if you are really lucky you get to be part of the 1% who habitually make a profit on their trades.

because succeed traders can control emotions, have good strategy, and know how to earn on Forex

Emotions are the real problem with so many traders losing the game. Many will continue their same bad habits of several mistakes over a time of many years.

Miscalculated Risk

You has give excelent answer , control emotion are part of psychology management and have good stratgy are part from good technically in predicting of forex market , but i think its mines of money management or risk management cause this part of administrating of financially at doing any business

Now, that we know of all the reasons why the traders fail in the forex trading business. It is the traders responsibility to correct those issues and survive in the forex market to make good income. Both advantages and disadvantages are within our hands and we need to sculpt our trading career accordingly.

If I may add in…

Success in forex in my opinion comes down to this.

Finding out what strategy works for you.
Testing it til you make consistent profits.
Tweak it to reduce risk as much as possible (it could mean stop loss placement, it could mean cutting losses short)
Proper money management.
Keeping emotions in check.
Have guidelines for each and every condition you can find.
Always remembering that tomorrow is another trading day.
Repeat.

After reading up on tons of pro traders and all, one little bit of info helped change the game for me.

Usually, when people lose heavy, something emotional kicks in and you wanna get back in straight away to recover it?
But once you understand and I mean TRUELY understand that losses are a part of trading, things start to change.

Always reminding yourself that even though you lost the trade, the reason you entered in the first place was because you saw a signal based on your strategy, and that will happen again and again and again so recovery RIGHT AWAY isnt important, reflecting and re analyzing is.

Having confidence in yourself as a trader to cut your losses short and to scope out more trades like the winners you get and not worrying about losses and taking them as a personal punch is something I believe will tilt the scale in your favor.

Only those traders get success who use good money management after having a good strategy. Consistency only follows them who follow their trading plan strictly. If you make some good trades then use bad money management you will return to same stage where you had started or even at worst.

So if you want to become a successful and consistent trader, then you need to follow your trading plan strictly.

Actually there is no fail proof method for Forex trading. But I strongly believe that one should study Forex throughly before practicing real trade. Finding a good course is not enough. Need to try and understand as much as possible of the content. A good background knowledge about Forex trading is a big advantage when come to real trading. practice is also necessary. Must start with a demo account. It will upgrade your confident and winning chances.

Mostly people that enters forex market try to gamble to win a decent amount in every trade. This is not possible, so they keep on losing and then again try to regain their lost amount repeating the same act. This continues and they keep on losing more and more.