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Posted on Sep 06, 2019 at 11:44 AM
In life, somethings don’t go together Like salad and pizza, smoothie and chocolate, those who love to keep it safe and those who risk it all for the thrill of pleasure.
This week’s question came from Kunle, who asked: “What is it that makes trading Forex seem difficult?”
From an outside perspective, trading should be easy. After all, your only options are buy, sell, or do nothing.
That means you have a 50% chance of being right every time you act. At least that’s how the odds look on paper.
Perhaps that deception is part of what makes it so difficult. The market tricks you into believing that it’s easy when in reality it’s just the opposite.
You may be asking yourself, why do I want to read about this? How is reading about what makes trading difficult going to make it less so or even better?
The bottom line is this…
The more you understand what’s keeping you from getting where you want to be in your trading, the easier the process becomes.
You’ll also be able to achieve your goals much faster and who wouldn’t want that?
In this post, I’m sharing a few reasons why I believe trading is so difficult. By the time you finish reading, you’ll have a better understanding as to why you’ve been struggling and what to do about it.
Alright, let’s get started!
In this business, university degrees don’t matter. Whether you hold a Bachelor, Masters or even a PhD, I’m here to tell you that it won’t help you much as a Forex trader.
Society may consider you to be an educated person, but the market doesn’t care.
The truth is, I have just a degree. I’m still contemplating on getting my Masters.
To be honest, I don’t spend one day regretting my decisions. I may get scolded by someone for saying that, but I believe there are many forms of education; school is just one path.
In the land of Forex, education comes from experience. There are no books or lessons that hold the secrets to consistent profits.
You can, of course, learn from books but you can also study and learn about various candlestick and chart patterns on this website and others.
We even developed a full FxAcademy for serious people, who have zero education on Forex to learn and begin to earn form the market.
This training contains both online modules and ends with offline modules because we understand that there is no substitute for experience. While that’s true for any profession, I believe that with trading, the market is your instructor.
So what’s the best way to learn how to trade?
By Journaling: Maintaining a trading journal is a great way to educate yourself on the Forex market.
Use the journal to keep track of your observations each day. Did the market respect a support or resistance level that you marked? If yes, did it form a buy or sell signal? If not, should your level be re-positioned or even removed?
When you practice the habit of Journalling, you get the idea and by documenting your observations each day, you unknowingly train your subconscious.
After a few months of doing this, you will be able to recognize patterns with little effort. The moment you open a chart your subconscious will access its library of chart patterns and identify them for you.
It may sound too good to be true, but I can assure you that this works.
I’ve never met someone who didn’t like to have control over a situation. Whether it’s deciding where to eat lunch or how much to spend on your next phone, having control is preferable.
But...Nothing about the Forex market is in your control. I mean you can’t decide how far the EURUSD will drop, and you have no say over whether the AUDUSD will move higher or lower from today’s price.
That doesn’t sit well with most people, because you are obviously scared of not having total control over the yeild on your capital.
So what do they do? They try to control it by staring at the chart hour after hour as if they're attempting to control the market by mind-power.
Now that's a joke, but I have also had my days of that helplessness feeling too.
I remember when I first began trading about a decade ago, I had a real problem letting go. I can remember countless nights going to bed well past midnight because I couldn’t stop watching my trades.
I knew I couldn’t control the markets, but for some reason I couldn’t stop staring. I was addicted to my trades, and it was not in a good way.
Do you know what happened next?
I made some terrible decisions. It became clear to me that the longer I sat in front of my charts, the worse my trading became.
One of the most important lessons I’ve learned over the years is to embrace randomness. Whether we like it or not, the markets will always exhibit a degree of randomness and to embrace this early will help you stay ahead.
This is why planning for every outcome is essential. Even the best trade setups can and will fail. It’s up to you to be prepared.
You can check out the late great Mark Douglas’ book Trading in the Zone to catch up on how to be parepard in the face of randomness as you trade the market.
Click here to check out 2 more powerful insights that will help you disolve the difficulty of trading Forex online and I am quite sure that after that, you will see the art of trading in a new light.
Until then, feel free to leave your contributions and questions in the comment section to below, I will ensure to read to them and recommend a thing or 2 for you.