Studies show that only 5% of the participants in the FOREX market gain money. That's 95% unsuccessful trades. So how do you make sure that you belong to the lucky 5? How do you build your staircase to success?
A lot of traders participate in the trade because of the positive testimonies of the upper 5 percentage of traders. They immediately invest their resources without taking their transactions seriously. Some beginners think that trading is easy and that gaining profit is an absolute possibility.
Bear in mind that trading is a business. It is not a hobby. The treatment towards trade transactions defines professionals from amateurs.
Another difference from successful traders to the unsuccessful majority is that successful ones think things thoroughly before participating in the trade. They scrutinize every possible factor that may affect the trade and observe patterns in the trading environment. They have trading plans built from knowledge and facts and they follow it. They consider the amount of money involved and the risks present. They apply all the insights they have learned from the courses they've enrolled in and the previous transactions they have been involved with. They read updated literature reporting issues that may be related to the trade. They do not simply base their decisions on emotions alone.
It is always easiest to trust your instinct when making decisions. It feels good and fulfilling if your instincts prove to be correct. But this is the most unstructured way to trade and eventually this lead to greater losses.
Good trading is tedious and boring. As a trader you have to do your research, strengthen your strategy, update all your policies, plans and schemes whenever necessary and stick to your tested methodology no matter how your instinct tell you otherwise.
Now that you know what it takes to succeed in this kind of business transactions, choose to be a successful trader!