This is quite shocking…
In 2017 a study was carried out by 4 economic scientists titled ‘Do Day Traders Rationally Learn About Their Ability?
It revealed that:
- Nearly 40% day traders quit after a month.
- 80% of all day traders quit within the first two years.
- Just 7% remain after 5 years
- Only 1% of all day traders are profitable net of fees.
Wow!!!
These sobering statistics are backed up with some other studies over the years including:
- A 2016 review on retail trading by the UK’s Financial Services regulator, the FCA, found that 82% of traders lost money, or in other words approximately just 1 in 5 traders made money or broke even.
- The Modern Trader Report 2018 found that less than 1% of UK online traders earn more than £75,000, with the average British trader earning £35.742 per annum.
This goes to show that trading is a tough business particularly for beginners who lack the experience, knowledge and trading psychology to succeed.
It’s important to be aware of this information before ever embarking on a career as trader to ensure you don’t suffer the same fate and shatter your dreams and ambitions before you properly start
As Futures & Options Trader Rod Cassili once said..
“Trading is not for the dabblers, the dreamers, or the desperate. It requires, above all, one steadfast trait of dedication. So if you are going to trade, trade like you mean it”
However, the upshot is if you want to buck the trend then it’s absolutely vital you view trading differently to how you would other money making opportunities or ventures.
Forex Trading should be thought of as a PROCESS as opposed to a project.
Well, what do you mean by a PROCESS, I hear you ask?
I covered this briefly in ‘The Ultimate Trading Mastery Checklist’ download that you received, but I would like go into this in some more detail in this particular e-bulletin.
Successfull Forex Trading Is All About Process And Nothing Else
As I mentioned above, when you starting off on your Forex journey, treating your trading as a process and not a project cannot be emphasised enough.
But before I go on let me differentiate what a ‘process’ is from a ‘project’.
In simple terms a project has a start and end date, whereas a ‘process’ is on-going with no definitive end date.
Through lots of research I’ve done through forums, Facebook groups etc the majority of beginner traders ask questions such as ‘How much money can I make Forex trading?’ or ‘How much trading capital do I need to make ‘x’ pounds per month’.
I have to be honest and say I asked these very same questions when I started looking to trade.
This is natural and there’s absolutely nothing wrong in being curious and excited about what kind of money you can potentially earn from trading, but as a beginner this is ‘putting the cart before the horse’, as they say.
Below I want to offer some simple but very important tips on breaking down your Forex trading journey into manageable goals so it becomes a process to ultimately becoming successful and profitable.
Crawl, Walk, Run, Fly
Most people have probably heard the saying ‘you have to learn to crawl before you can walk’ or ‘you have to learn to walk before you can run’.
If you haven’t then it basically describes the process of becoming more and more skilled and adept at something.
Everyone who embarks on learning to trade starts at a similar point- usually at ground level. In the case of this concept it will be the crawl stage.
So regardless of background, education, or age you have the same potential to be a highly successful Forex trader as the next person.
The only real thing that’s limiting you is your current experience in the Forex markets so basically you have to go through the process of learning how to crawl before you can walk, walk before you can run and run before you can fly.
Strong Belief
There is a misconception with lots people that those who make it as full-time Forex traders come from privileged backgrounds, and/or have gained valuable experience working for an investment banks or a hedge fund for example.
This can obviously have it’s advantages but it’s definitely not the ‘be all and end all’ to becoming successful.
There’s enough education, courses, coaching and resources out there these days for anyone to make a career in Forex trading and if you follow the ‘PROCESS’ as they call it then you will eventually make it!!!!
So ignore all the nay-sayers, those doubting Thomas’s and start believing. If you truly want to be successful as a Forex trader then it’s imperative you remove any disbelief you have about the possibilities of becoming consistently profitable.
You must believe without any shadow of doubt, because the reality is you ABSOLUTELY CAN!!!!
Take Care Of The Process And The Money Will Follow
As a Forex Trader, rather than focusing on how much money you want to make in a day, week, month or year, instead concentrate everyday on the PROCESS (yes I’m saying it again) of becoming the best trader you can be.
Any milestone you reach of monetary value is simply a by-product of the process you went through to reach it.
Put another way, you reached that milestone because of the numerous steps and actions you did correctly along the way, not because you focused on the milestone itself.
Don’t make the mistake of aiming to make ‘x’ amount each and every day.
Rather focus on executing each step of (yes you guessed it) the PROCESS as effectively as possible which will ultimately lead you to consistent profits.
This will prevent you getting caught up in the outcome of every trade and therefore dramatically reduce your levels of stress.
Your attention should focus on things like effective money management, identifying support and resistance levels executing your strategy, your R/R ratio etc.
Do this consistently everyday and the money WILL follow.
An Enduring Passion & Burning Desire
Like everything, if you’re passionate about something (in this case trading) then it’s likely you going to be successful. Passion is 100% essential if you want to succeed as a trader.
An enduring passion is what fuels your motivation to keep learning, keep improving, keep disciplined, and keep focused on becoming successful in the trading business.
Your passion and your burning desire to succeed will allow you to overcome whatever obstacles and challenges that come in your way (and there are likely to be many).
The thing is though, passion is something none of us can learn or be taught. You either have it or you don’t.
And if you don’t, I can categorically say now…Trading isn’t for you.
From the little experience I’ve gained over the last couple of years, I’m beginning to realise becoming a successful trader is a long journey that possibly never ends.
You will have your struggles as well as your triumphs regardless of what stage of trading you’re at.
By that I mean you’re always going to be going through the PROCESS of learning and refining your trading plan, trading strategy and trading edge.
So to finish, and the biggest thing I hope you take away from this e-Bulletin is this.
Please, Please, Please keep your focus on the PROCESS and never on the profits, because if you do the money will follow and your success is almost guaranteed.
