Fx Trading - Tap The First Key To Forex Trading Success -part 1 Of The Success Equation By Peter Lim ,CFP At Isnare.com Ezine Articles

Many people dream of making money from trading in the stockmarket, from trading futures and commodities and from trading currencies. For a substantial number of traders, their dream remains but still a dream. This is because many of them are unable to trade profitably, not because they have not tried to become better traders, but no matter how hard they tried, they have not been able to make progress.

Worse, some have even lost their capital or have gone bankrupt in the process.

In my work as a Certified Financial Planner, I have had the opportunity to conduct private research into the personal needs of traders and investors. Broadly separating these traders and investors into two main groups...the first group being the perennial losers, and the second group being the consistent winners...I discovered two main characteristics that separate these two groups. In fact, I could easily say that these two characteristics provide the key to the success of the consistent winners.

My premise is simple: If I could isolate what these two factors are between the losers and the winners, I could have the best chance to help the losers to convert into winners by showing them what these two factors are that they can follow!

So what did I find out?

The consistent winners clearly demonstrated that they have mastered their trading setups, and had the ability to follow through with the trades in a disciplined manner. On the other hand, the losing traders were identified with a less than disciplined approach to their trades or have lapsed during the trading process in identifying clear trading setups. Many of them were impatient to trade, even though there was no clear trading setup that warrant them to trade.

Clearly then, the first part of the equation to enable the transistion of a losing trader to that of a consistent winner lies in the ability of the losing trader to MASTER HIS TRADING SETUPS.

It is when you let the market tell its own story and you follow the market and its trend, and pick up every nuance of the market that is represented by a predetermined and pre-defined trading setup that you can become a successful trader. The sad story is that almost all of the traders who are losers tend to force the market to give them profits when clearly there is no trading setup that can allow them this opportunity. They have preconcieved ideas that their trades must give them "X" amount of profit, and when the market does not do that to their bidding, they are unable to accept that they are wrong and to take a loss.

Does this sound like you?

If you are a forex trader, or a stock and share trader, or a futures and commodities trader, the first part of the equation to move from losing trades into profitable trades is to master your trading setups.

What then is the practical solution?- "MASTER YOUR TRADING SETUPS"

Find a profitable trader who is a consistent winner and learn from him. This process of learning is not new. In the days of old, we call this "apprenticeship". In today's world, we call that mentorship. While it may be hard to get a good trader to mentor full time, the advent of technology and accelerated learning systems has led to specialised courses that can be delivered via multimedia and online or through ebooks and specialised literature that can act as surrogate real life learning.

In Part 2 of this article series, I shall reveal the second part of this important equation that can change your trading career from a loser into a winner.

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