- PPF Points
- 2,396
Why is it that 90% of Forex traders fail? Is Forex trading really that difficult?
It can be at times. Not because it’s incredibly hard to discern favorable patterns or strategies, which comes easy enough when you know what to look for. It’s hard because as humans, we are inherently bad at it.
We can’t seem to get out from under our own egos, among other things. We constantly psych ourselves out, thinking that a once favorable setup is no longer favorable, only to see the market run to what would have been a handsome profit.
Sound familiar?
I have written about how egos affect our trading before so I’m not going to talk about that today. Instead I want to talk about something much more translucent – the power of passion and an unwavering desire to become a successful Forex trader.
That’s what will truly get you to the next level in your trading career. So without further ado, let’s get started.
Success Isn't in Your Head
It’s in your heart. What transcends you to the ranks of consistently profitable traders isn’t your trading strategy. It isn’t even your ability to manage your risk. None of that matters one iota if you don’t have this one thing…
Passion.
Without passion you mine as well pack up shop now and do something else with your life. I don’t say that to be harsh or cold, I say it to make a point – that a burning desire to make it in this business is the only foundation for success. Anything less will never yield the results you desire.
Why is passion the foundation for success as a trader?
Without passion you won’t have what’s necessary to push through the difficult times. What will you do when you lose 30% of your trading capital in one month? What if you lose that amount in one week?
If this kind of setback hasn’t happened to you yet, it will. And you can’t rely on your mind to pull you out of it because it was your mind that dug the hole in the first place. Your mind is what caused you to spiral out of control and turn a 3% loss into a 30% catastrophe over a series of emotional trades.
The only thing that will get you back on track is passion and lots of it.
Do You Love to Trade Forex?
So what exactly is passion when it comes to Forex trading and how can you tell if you have what it takes to make it in this business? I can help you answer that by asking one simple question.
Do you absolutely love trading Forex?
If you answered yes, then you may have what it takes. If you hesitated or had any doubts when you answered, you need to take a long hard look at your chosen profession. And make no mistakes about it, this is a profession just like being a doctor or a lawyer. It takes time, effort and no small amount of heart to make it.
To clarify, a love for trading means you are passionate about every single aspect of it. Everything from the patterns and strategies you trade to how the news influences the market. All of it should completely fascinate you to the point that you have to become a great trader because anything less is unacceptable.
But here’s the kicker – a love of wanting to make money as a trader is not synonymous with a love for trading Forex. In fact the former will often get you in trouble when attempting the latter. In other words, if your only reason for trading Forex is to make tons of money, you are likely going to make a lot of costly mistakes.
Win or lose, you have to love everything trading has to offer in order to make it big in this business.
Reality Check
Becoming a consistenly profitable Forex trader is one of the toughest things you will do in life, if not the toughest. So naturally it’s going to take an equally strong desire to become consistently profitable if you want to reach your goals.
If you are just going through the motions of “being a trader”, you are far more likely to lose money than to make it. This type of behavior is often exhibited by those looking for quick money. Said another way, those who love the idea of making a lot of money but don’t necessarily love trading Forex.
Someone asked me the other day, what is the single biggest factor that differentiates a profitable trader from someone who is still struggling?
My answer: Passion that becomes a burning desire that prevents you from giving up.
That is the only thing that separates the successful trader from the struggling trader. Sure, those who are successful may trade differently and use various approaches to money management, but at the end of the day it all comes down to who quits and who perseveres.
Taking Stock
No, I’m not suggesting that you go trade stocks rather than the Forex market. I’m talking about carefully examining your current situation – taking stock of whether or not your mind and heart are in sync with each other.
Are you passionate enough about trading to get through the tough times that lie ahead? And trust me when I tell you, there will be tough times and they will test every fiber of your being.
It’s also important to examine whether you are passionate about trading Forex or the idea of trading Forex. The two have little in common, yet they are often confused among aspiring traders.
Again, this goes back to those who want to make a lot of money and see the Forex market as a vehicle to achieve wealth. While the Forex market can produce great sums of money to those who put in the time and effort, the desire to make money can’t be your driving force to become consistently profitable.
It has to be the other way around. The force that drives you must be a strong passion for trading. Only then will you be able to make great sums of money on a consistent basis.
In Closing
Just as making money comes second to protecting your trading capital, the desire to make money has to come second to a love of trading. Unlike other aspects of your trading, this is not something that can be taught. You either have it or you don’t.
If your only interest in trading Forex is to make large sums of money, you are going to find it very difficult to push through the hard times. The only thing that’s going to pick you up and put you back on your feet every time is your love for trading.
It can be at times. Not because it’s incredibly hard to discern favorable patterns or strategies, which comes easy enough when you know what to look for. It’s hard because as humans, we are inherently bad at it.
We can’t seem to get out from under our own egos, among other things. We constantly psych ourselves out, thinking that a once favorable setup is no longer favorable, only to see the market run to what would have been a handsome profit.
Sound familiar?
I have written about how egos affect our trading before so I’m not going to talk about that today. Instead I want to talk about something much more translucent – the power of passion and an unwavering desire to become a successful Forex trader.
That’s what will truly get you to the next level in your trading career. So without further ado, let’s get started.
Success Isn't in Your Head
It’s in your heart. What transcends you to the ranks of consistently profitable traders isn’t your trading strategy. It isn’t even your ability to manage your risk. None of that matters one iota if you don’t have this one thing…
Passion.
Without passion you mine as well pack up shop now and do something else with your life. I don’t say that to be harsh or cold, I say it to make a point – that a burning desire to make it in this business is the only foundation for success. Anything less will never yield the results you desire.
Why is passion the foundation for success as a trader?
Without passion you won’t have what’s necessary to push through the difficult times. What will you do when you lose 30% of your trading capital in one month? What if you lose that amount in one week?
If this kind of setback hasn’t happened to you yet, it will. And you can’t rely on your mind to pull you out of it because it was your mind that dug the hole in the first place. Your mind is what caused you to spiral out of control and turn a 3% loss into a 30% catastrophe over a series of emotional trades.
The only thing that will get you back on track is passion and lots of it.
Do You Love to Trade Forex?
So what exactly is passion when it comes to Forex trading and how can you tell if you have what it takes to make it in this business? I can help you answer that by asking one simple question.
Do you absolutely love trading Forex?
If you answered yes, then you may have what it takes. If you hesitated or had any doubts when you answered, you need to take a long hard look at your chosen profession. And make no mistakes about it, this is a profession just like being a doctor or a lawyer. It takes time, effort and no small amount of heart to make it.
To clarify, a love for trading means you are passionate about every single aspect of it. Everything from the patterns and strategies you trade to how the news influences the market. All of it should completely fascinate you to the point that you have to become a great trader because anything less is unacceptable.
But here’s the kicker – a love of wanting to make money as a trader is not synonymous with a love for trading Forex. In fact the former will often get you in trouble when attempting the latter. In other words, if your only reason for trading Forex is to make tons of money, you are likely going to make a lot of costly mistakes.
Win or lose, you have to love everything trading has to offer in order to make it big in this business.
Reality Check
Becoming a consistenly profitable Forex trader is one of the toughest things you will do in life, if not the toughest. So naturally it’s going to take an equally strong desire to become consistently profitable if you want to reach your goals.
If you are just going through the motions of “being a trader”, you are far more likely to lose money than to make it. This type of behavior is often exhibited by those looking for quick money. Said another way, those who love the idea of making a lot of money but don’t necessarily love trading Forex.
Someone asked me the other day, what is the single biggest factor that differentiates a profitable trader from someone who is still struggling?
My answer: Passion that becomes a burning desire that prevents you from giving up.
That is the only thing that separates the successful trader from the struggling trader. Sure, those who are successful may trade differently and use various approaches to money management, but at the end of the day it all comes down to who quits and who perseveres.
Taking Stock
No, I’m not suggesting that you go trade stocks rather than the Forex market. I’m talking about carefully examining your current situation – taking stock of whether or not your mind and heart are in sync with each other.
Are you passionate enough about trading to get through the tough times that lie ahead? And trust me when I tell you, there will be tough times and they will test every fiber of your being.
It’s also important to examine whether you are passionate about trading Forex or the idea of trading Forex. The two have little in common, yet they are often confused among aspiring traders.
Again, this goes back to those who want to make a lot of money and see the Forex market as a vehicle to achieve wealth. While the Forex market can produce great sums of money to those who put in the time and effort, the desire to make money can’t be your driving force to become consistently profitable.
It has to be the other way around. The force that drives you must be a strong passion for trading. Only then will you be able to make great sums of money on a consistent basis.
In Closing
Just as making money comes second to protecting your trading capital, the desire to make money has to come second to a love of trading. Unlike other aspects of your trading, this is not something that can be taught. You either have it or you don’t.
If your only interest in trading Forex is to make large sums of money, you are going to find it very difficult to push through the hard times. The only thing that’s going to pick you up and put you back on your feet every time is your love for trading.