I have to admit that Forex trading is one of the hardest jobs in the world to make big money. The main reason why many traders failed in the Forex market is because their lack of knowledge. It is not a matter of working hard, but a matter of working smarter.

I have to admit that Forex trading is one of the hardest jobs in the world to make big money. Many traders think Forex trading is one of the easiest ways to get money, which is wrong. Many traders failed and wiped out their trading accounts before they learn how to exploit the forex market to their advantage. The main reason why many traders failed in the Forex market is because of their lack of knowledge. It is not a matter of working hard, but a matter of working smarter.

Work
If you have the knowledge, you can come up with ways to exploit what you know to your advantage. This applies to Forex trading as well. You must understand how the Forex market works and also you need to understand your own emotions. You need to know how to spot high-probability trade setups and how to manage your risk.

As I always say, and based on my own experience, you must have the 3M's as your pillars in Forex trading; Mind, Money, and Method. Many successful forex traders are not university graduates or have any financial or economic experience. That is why you often see people who don't have a proper education become more successful than people who graduated from university. Based on my own experience, the Mind is the most important thing in Forex trading.

 

MIND

Mind is the crucial element in Forex trading. As a human, we all have emotions. Emotions can work for us or against us. Most of our decisions are guided more by emotions than logical thinking.

You need to have the mental strength to be successful in Forex trading.
You must have a strong desire to become a good Forex trader; you must be highly self-motivated, have a plan of action, and not be afraid of failure.

 

You must be willing to accept losses as part of trading.
No one ever in this world gets a 100% winning rate in Forex trading. There will be always losses, which is why you need to protect your capital with proper money management. Take something positive from the losses and turn it into a learning experience.

 

Take full responsibility for every trading decision.
Do not blame the market, brokers, or anything. You make your own decision. You take full responsibility for that.

 

Do not be greedy!
I had that feeling before when I was still in my early days of trading Forex. Yes, you want to get money in a short time, but being greedy will just destroy you! I lost all of my money in 1 day just because I was being greedy and you shouldn't be like that too.

 

Do not be afraid of making wrong decisions.
No one can predict the market with 100% accuracy. Even the best computer system cannot predict the market. It does not matter if a trader is right or wrong; what is important is whether he or she can make a profit in the long run. A trader should not be judged in a single trade but over a long period of time.

To be continued to part 2...