|Download this article in PDF format or listen to it below|
As you know, I’ve been to Poland to hold a seminar there and during this visit I’ve discovered many interesting things. I discovered where SO MANY people still have issues and I found the reasons for that. Let me try to share with you my opinions.
1- “Show me a live trade with profit” – Some people asked me to show them how I do a live trade that will make money. It was a bit surprising and I asked them why they want me to show them a live trade. They said – so we know that you are a real trader. I asked these guys and I will ask you as well – Suppose I make one good live trade, does it mean that I’m a real good trader, and if I lose one trade, then I am a bad trader? Of course they didn’t reply me, but just to make it clear, if anyone thinks that’s how it works, then trading is not for him.
2- Success rate – So many people think that if a trader trades with 80% success he is a wonderful trader that makes tons of profits. Well, that’s WRONG!!! Forget about the % rate of success!!! The only thing that matters at the end is if you make money or not!!! And not for every trade, every day, week or month, but for a fairly long run! I know people who make a lot of money with only 20% success of their trades, because of correct M&M methods for their strategies. I know people who make money with 90% success, and I know people who LOSE money with 99% success of their trades! Think about it, if you make 100 trades, 99 were successful with 1 pip profit each, and only 1 trade lost but it lost 500 pips, so you finish losing!!!!! With 99% success rate. So trust me, it’s all fake. These numbers are made to sell better. Not to prove anything real. Only thing that matters is the bottom line – if there is money made of profits or not.
3- “Forex is a risky market” – Such a common mistake. Friends, I am a forex trader mainly. I do trade commodities, stocks and indices, but mainly forex. Let me tell you that – Forex, is the MOST safe market! A currency pair normally changes 0.4-1% per day. While stocks can do several % per day, indices and commodities as well. The only thing that makes the forex market riskier is when a trader uses high leverage, just because he can. So wake up friend, forex is the best and the most potentially profitable market in existance! In fact, think about it. I know tons of traders worldwide, I know people who make 100% per year in forex, with minimum risk of 20% of their money, but somehow, I never met a trader making 100% from stocks per year. What does it tell you? Forex is a safer market, that tends to pay the most. It is a known fact that it is the biggest market. So how could it be riskier than others? Only because of Human mistake – HIGH leverage. For me, making money while you trade forex is easier than making money while trading stocks., indices or commodities.
4- Leverage – the BIGGEST problem of traders. Huge dreams of becoming a millionaire fast. Huge rumors of people that “did” it. I never met a profitable trader who for long run uses high leverage. So how come everyone heard about a “guy that made a million from 1K in 1 year” but no one knows this guy??? friends, wake up to reality. You want to make money trading? Trade as professional, without leverage. You have free money to waste and to try? then open a separate account and trade there with aggressive mode. Don’t be surprised if you burn this account…
5- “Big stop is bad” – I heard so many people saying that if you risk 200 pips and take only 40-50 you can’t make money. It is true, as long you don’t use a proven system. If you have a proven system, that the only money & management that is important to you is – the BOTTOM line – do you make money or not! Judge it based on 6-12 months results at least. If you do make money, then ignore what others tell you. Remember – those who tell you that what you do is wrong, are those that don’t make profits themselves and are trying to make themselves feel better.
I hope I shared with you some important views and insights, and that you can see where most people still have issues. Overcome them, and you will be ok.