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I believe there are three basic categories under which you can sum up the 90 to 95% failure rate among both new and armature forex traders, often even seasoned armatures.

1. Trusting Market Makers: The vast majority of traders are attempting to educate themselves with what ever free or inexpensive education exists online, usually from Brokers and their Introducing Brokers whose goals is almost always to get you trading a real live account as soon as possible. That’s the only way they can start making any money from entry and exit order spread fees and commissions. The simple fact of the matter is, they don’t need to make any money on the front end for education as long as they are going to be taking the counter trade position to every trade you enter. They know the statistics and they play the odds just like a Bookie taking bets on a horse race, only their odds are better. Why would you want to teach your clients how to trade effectively if it meant you were going to lose money every time they had a successful trade? Hello! No-Brainer!

The Retail Brokers (Market Makers) do not want you to be a successful trader, they just want you to think they do. Remember, if they are in the apposing position they are in a conflict of interest and will lose money when you win money. What do you think the odds are that they have designed all kinds of methods into the trading platform and charts, that they provide to you for free, to trip up and sabotage your trade entries or exits? Anybody familiar with these types of pop-up windows appearing at entries or exits: “Please Wait”, ” Invalid Price”, “re quote” after “re quote”, after “re quote”…, Context is Busy”, Lock-Out symbols like a “Padlock” icon, “No Connection”, and how about excessively variable spread rates at the discretion of the Market maker or the liquidity provider according to their own interpretation of a fast moving market which allow them to use it as a Stop Hunting Tool making it nearly impossible to set a reasonable stop that won’t be triggered by a false or manipulated spike in the data-feed. I’m sure that you have experienced many of these and more. But did you realize they are all manipulated by those who are providing you the free charts and trade platforms and usually the fx education you are depending on for you success. Wake-up Call! This leads us to item #2.

2. The Right Combination of Educational Tools and Skills: There is a lot of poor free FX education offered online. Or FX software packages, EAs, FX black boxes and robots seen on Infomercials, and Internet ads, presented as though FX trading can be made simple, thoughtless, brainless, so that anybody can do it successfully and get rich with no education, no effort and no sacrifice. I just spoke to a professional programmer and Expert adviser writer who says he has been testing everything he can get his hands on for the last eight years to see if any of them get enough return on to be worth the investment. He said he is still looking without success. I don’t know about you, but I didn’t get into Forex to make a measly 10 to 20 % return on my money. I could do that with a far less risky Mutual Fund.

I have learned that their are two ways to become successful in as a forex trader: 1-THROUGH THE SCHOOL OF HARD KNOCKS, if you can survive it over many unnecessarily painful years of frustrating searching, trial and error testing, and losses, or the smart way: 2-find a mentor who has already been through the gauntlet and has finally learned the right combination of education and strategy and has proven its capability through demo and live account mastery. These are not easy to come by, and when you find a real, true mentor who is willing to offer you what he/she knows, its worth anything you have to do to obtain it.

Personally, I had to pay gobs of money to several different mentors, together with the school of hard knocks in order to get my education. I have learned the hard way that investing in education is far more important that investing in a live trading account. Once you are properly educated with the right combination of education and you have learned how to master the strategies you have learned in a practice account, and you have chosen the right broker to who is incentivized to serve you, instead of his/her own interests alone, then, there is only one last thing to learn before you can become a successful FX Trader, which brings us to Item Number 3.

3. Self-Discipline in a Proven Strategy and Trade Plan: For those fortunate, favored and blessed enough to have found a mentor to guide them through the FX Labyrinth around the major pit falls and snares in the market and among market makers, the last thing they must learn to triumph over is, themselves. New traders who begin to trading real live money for the first time usually start out cautiously following their proven trade plan carefully, then, with success they become over-confidence and greed, which leads to compromising of the trade plan, which leads to eventual heavier losses, which engenders fear, hesitation, greater losses, and then crippling trepidation at the thought of entering a trade. Then emotional despair. Some give up at this point, wishing they had never tried in the first place, determining that learning to trade was all a big mistake. These are defeated by their own emotions that prevented them from working their proven trade plan.

Learning to manage and discipline ones emotions is easily said, but quite frankly, it requires learning to discover deeply rooted beliefs and though patterns that began to be planted in the farthest reaches of our minds since we were very young children. The household we grew up in, the culture that raised us, the experiences and circumstances that have perceived and responded to throughout our lives, these have shaped the pathways, the definitions and the structures of our beliefs about self, others, money, wealth, poverty, fairness, justice, injustice, etc. We also have our own personalities which have helped to determine how we have responded to and what we have chosen to believe about our life’s experiences.

You should ask yourself two questions before embarking on the quest to becoming a successful trader: 1-Do I have the confidence and the courage to discover and face myself? 2-do I have the stamina and endurance to not allow my emotions to prevent me from becoming successful. If your answers are honest in the affirmative, then you should give it everything you have to learn how. Only time will tell, but you will never know if you don’t take the chance. One thing is for sure. Those who embark on this Forex trading journey will never be the same again because they will have an opportunity to face and overcome themselves in a way that only the strong and the courageous are blessed to receive. Those who step forward and try are the only ones who have a chance of triumph, and those who triumph are the only ones who will receive the ultimate reward.

No matter how you look at it, the ultimate triumph is always more valuable than the gobs of money you may learn to make. It is the process of becoming a greater, stronger, more selfless individual through the personal sacrifices made on behalf of others on the road to discovering and becoming the happy, successful person you are intended to be. To do this, we must learn to recognize and follow the rules of successful trading and successful living.

Stephen Story http://www.forexcoachingpros.com

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