Forex Trading Basics - 10 Losing Character Traits That Will Wipe out Your Equity!

Forex Trading Basics - 10 Losing Character Traits That Will Wipe out Your Equity!

by Monica Hendrix

Here we are going to look at forex trading basics and 6 character traits that if you have them, you are going to lose. The vast majority of the 95% of traders who get wiped out have them, so to enjoy currency trading success you must avoid them...

1. Wont accept responsibility

This is a common trait.

People continually try and shift responsibility for their success to others - but only you can give yourself success. You can do it - BUT success rests on your ability to learn the right forex education and execute your forex trading strategy with discipline.

2. Want To Have Fun

It always amuses me when I see traders who say they like to have fun, that's why they trade.

Trading is not fun in itself, its satisfying, when your making money. I don't trade for fun, I trade to make money. Sure, if I win I have fun with the money but that's not the same as having fun trading.

If you trade for fun above all else - chances are you like the action, so take low odds trades and lose.

3. The Action Man

This really can be combined with point 2.

This trader cannot stay out the market and lacks patience.

He is trading in the hope that the more he trades, the more he will make but markets don't reward you for effort, they reward you for being right with your trading signal and that's it.

4. Believe Experts

This group of traders like to trust expert opinion and believe what CNBC news tells them or some bank trader.

This always reminds me of will Rogers's famous saying:

"I only believe what I read in the papers"

He was joking of course but its surprising how many people believe anything their told by an expert.

This also goes for the vast group of traders who buy a Forex trading system from a vendor and think with no effort, they will make money. Sadly, forex trading is not that easy.

5. Thinking Your Clever

There are many traders that think their clever and that this will bring them success. It doesn't - they tend to over complicate their forex trading strategy and lose. Simple strategies work best and this is a known fact so keep it simple.

Another problem with people who think their clever is they come with egos and a big ego means they have a problem accepting they are wrong and in forex trading, you are going to be wrong - refuse to set stop losses or run losses to far and you will be wiped out.

6. Lack of Discipline

Comes from a combination of all the above. This is the single biggest cause of traders losing.

To acquire discipline you must learn currency trading the right way and get the right education, so you understand fully and have confidence in what you are doing.

If you don't understand and have confidence in what you are doing, you will not stay disciplined through inevitable periods of losses.

To win at currency trading, you must stay disciplined through periods of drawdown, to enjoy long term trading success.

ANYONE Can Learn Forex Trading

It's a fact that everything about successful currency trading can be learned by those people with a desire to win and the willingness to learn the right information.

Once you have the right method, you then need to have the discipline to apply it. If you cannot apply your method with discipline you have no method.

Forex trading basics means - Not only getting the right forex education but also the mindset to succeed as well.