Make Money by being a Forex Loser

Forex trading requires you to be a good loser

Many new currency traders think that successful traders have successfultransactions all the time. Most goodtraders, in fact, trade with success rates about fifty percent and seventy five percent. Because of this it also means that they also fail fifty to twenty five pecent of the time.

When you calculate all the losses made by a successful trader (in dollar terms) the losses are often much bigger than the gains or losses made by an unsuccessful trader. Therefore good Forex traders are not only the biggest winners but also the biggest losers (in dollar terms). Trading activity is sometimes much more important to trying to get a hundred percent record all the time.

There are many explainantion of this. Good traders have accepted the fact that losing is part of Forex trading. They therefore process and accept loses in a very constructive way. They are not distracted by failures or become emotionally upset. To get most value from their losses they view them as learning experiences They also know that a trader's success rate is only one of the components to a financially rewarding Forex trading career. They know that to succeed it take a balance between many trading skills and factors. These factors include good money management, a positive and objective trading psychology, how much profit you make on winners, how much is lost on unsuccessful trades.

Using this constructive attitide allows them to trade more often (Not talking about over trading) as they are not distracted by trading psychology challenges such as depression and paralysis. They are also more confident at increasing the number of lots traded based on their past gains.

Money Making traders are more active and trade bigger trades. Not only do they make more (in dollar terms) on their winning trades but at the same instance they lose more on their losing trades because their size of of lots are gradually increased.

Because of their ability to not deal with losses very well unsuccessful traders don't risk as much on the deals as they become so cautious. This increases their insecurity and gives them a trading inferiority complex. Most unsuccessful traders are so distracted by their losses that they start their quest for the Holy Grail over and over again every week.

If you can process your losses positively you can save so much energy and time by improving what your trading technique. Almost all trading techniques can be made to be profitable by adding a number filters anyway (or reversing the trading direction on unsuccessful systems) so the trading system is the easy part.

Successful trader have a good money management process and a positive trading psychology.

Good traders lose money because it is part of trading (the market will always do what the market will do) and they don't lose any sleep about these loses. How well do you deal with your trading knocks?

Learn to manage negative deals and spells and you could have what it takes to be a money making Forex machine

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