8 things successful Forex traders won’t say

forex trader

When it comes to Forex trading, there is no denying that it is a dog eat dog world and it is an extremely volatile market to trade in.

There is no denying that this can be a lucrative career and you can be successful in it. However, there are many misconceptions doing the rounds and you might fall victim to misleading information as well.

There are eight pertinent statements that will never be uttered by any successful Forex Trader. This article will aim to educate on the top eight most rubbished statements that have been heard.

1. “I have never lost”

No other statement can be as false as this one. Losses are a natural occurrence in the Forex trading hemisphere, and losing is unfortunately inevitable.

The aim, of course, is to have more gains than losses but any trader that utters these words is blowing the situation out of proportion by exaggerating.

Forex trading is all about the factors that influence trading on a daily basis. Sometimes the odds fall in your favor and other times they don’t, it is a completely natural process.

Any realistic trader will understand this concept and constantly seek ways of improving their strategies to combat losses. But occur they still will occur, regardless.

Long-term success in the Forex trading market is accomplished by measuring the victories on short-term wins and embracing the culture of the Forex trading market.

2. “It is not important to manage your money”

This is another impossible statement to make by any true Forex trader. You need to determine upfront what your budget is before you even develop the various entry and exit strategies.

If you ever come across a trader that is of this opinion, it is best not to heed any advice from them, and to seek a more objective opinion elsewhere.

Part of this is to ensure that you have a solid risk management strategy. The market is very unpredictable, no matter how good you might be at analyzing both indicators and signals, you are simply not going to be able to predict everything accurately all of the time.

3. “Averaging down is a good thing”

No, it is most certainly not! No logical thinking person will continue to invest in a commodity that is constantly producing a loss? Continuing to do so, will send you on a downward spiral.

You have to exercise restraint to know when to cut your losses and move on. Despite your emotions and the allure of “what if”. “What if” does not yield any guarantees.

One way that this can be mitigated is to stay abreast of the trends and other factors that will affect the Forex market and to use them as tools to maximize profits and manage losses.

4. “I have a 90% conversion rate, by reading charts on short-term investment opportunities”

In reality, the most successful Forex traders, barely have a 70% success rate converting short-term investments into profitable gains. 

Lending your ears to this type of statement will only result in bad investments being made, due to the intimidation factor.

Any successful Forex trader will tell you that they focus on the small victories every now and then. A 90% success rate is simply not possible due to market fluctuations.

As strange as it might sound, you should have fun trading in the Forex market. Placing unrealistic and unnecessary expectations on yourself will result in a number of bad decisions and ultimately bad investments.

5. “To be successful you have to trade every single day”

It is highly recommended that after a significant gain or a big loss, to take a few days to either recover or enjoy your profits. It can be mentally and emotionally taxing, therefore it is not sustainable in the long run to do this every day. Sometimes taking a break and exercising patience can pay off more in the end than having an aggressive approach to Forex Trading. The best is not to have any knee-jerk reactions to the market, but to seek opportunities for wins and to apply them accordingly.

6. “I have a profitable strategy that is suitable to all market conditions”

Think about it this way, if this were the case, there would be many more rich people around and every successful Forex trader would’ve adopted this strategy by now.

Simply put, there is no such thing as a fool-proof strategy for any one market, never mind multiple conditions and scenarios.

The market is constantly changing, and therefore so will the strategies employed by Forex traders. Subsequently, some strategies will be successful and others will diminish.

The best strategy is one that is evolving as the need arises.

7. “I am completely self-taught”

Sure, it is entirely possible to learn a lot of information by educating yourself, but it is not realistic that any successful trader would make such a claim. Every Forex trader’s path will be littered with losses and many lessons learned along the way.

There is absolutely no shame in being honest to say that strategies have been learned on various Forex trading courses and by observing other Forex traders in action.

Every Forex trader needs as much experience under their belt to be successful at what they do and improve their game every chance they get.

It is very unlikely that any Forex trading professional has mastered the art, without any form of external assistance.

8. “You can teach me nothing new about Forex trading”

Ah yes! The Forex trader that literally knows everything there is to know about trading. At the end of the day, it does not matter which industry you are operating from, there will always be ways in which you can upskill or improve – no matter how long you have been in the game.

You need to improve and work on your strategies to become and remain successful in what you do.  You should never feel that there is no more improvement that can be exercised. 

Cultivating and fostering a mindset of continuous improvement will make a successful Forex trader out of you yet!