It's a fact that forex trading can be learned by anyone but most traders fail and the reason they do is they don't understand forex trading psychology. If you do, you can join the elite 5% who make big consistent profits...
So what why is mindset so important?
The simple answer is forex trading is not just about method, it's also about the discipline to trade your method.
If you don't have the discipline to trade your system, you simply don't have one.
So why is trading with discipline so hard?
The reason is simply, you will at some point face a string of losses and it happens to even the best traders.
Forget all the rubbish you read, about trading with little or no drawdown, you read from vendors - It's not true. You are going to face periods of losses which may last many weeks and you have to keep going, despite taking losses and your emotions will be telling you to deviate from your plan.
Its here, that robust money management and discipline, will carry you through a losing period, until you hit profits again.
Discipline means you have to understand what you are doing and have confidence.
Most traders think they Can follow a so called expert and win, while most advice and forex robots sold online are junk, they cant even follow the few good advisors and forex trading systems because they don't learn from the ground up.
When you operate in the forex market, you operate in an environment that presents these unique challenges:
- The market is all powerful and is always right and only you can be wrong
- Its anarchy and chaos and you will lose for periods of time
- Its an odds based game and you need to learn how to trade them
- There is no rule of law and of course you have to make your own rules to survive
- The work ethic doesn't apply and work rate counts for nothing.
- Being clever also counts for nothing only being right does