Expect to be in the game for the long term
Get rich quick does not exist in this game. If it does, it’s luck. Very few people come into the game and can pick it up instantaneously and yes there are going to be the odd one who makes it in the short term. Forex short term trading is not for amateurs, and as mentioned it is rarely the path to ‘get rich quick’. If you have this idea in mind then it will help to accept the previous 4 concepts.
As we have discussed, what makes a trader successful in trading their chosen forex strategy is their ability to stick with it – even in the face of adversity.
However, for a many-a-market newcomer this represents little more than an inconvenient truth. Many rookies simply chose to trade for the wrong reasons and their expectations are often unsustainably high. Often they will have an emotional attachment on the outcome of the trade (ie; the euphoria of making money from a winning trade vs. the pain of giving money away to the market from a losing trade). So, in their bid to find the silver bullet, they flirt around from strategy to strategy like a dog chasing his tail.
Suffice to say, they do not understand variance: that the frequency of both winning and losing trades are random. The amateur trader may have unwittingly started trading a hugely profitable strategy at the start of its drawdown phase. After two or three losing trades they will move onto the “next best thing” – anything not to lose more money…only to discover that through doing that they have taken themselves out of the flow of opportunity and out of the running to benefit from a string winning trades.
Sure enough, their equity curve for that strategy may look negative compared to the highly profitable curve of someone else who has traded that strategy for month or years.
Through sticking to one trading strategy in “sickness and in wealth,” you will be keeping yourself in the opportunity flow and the subsequent frequency of wins and losses.
Remember, winning and losing trades from any strategy is very similar to waiting for a bus in the city; sometimes they all arrive at the same time or there is a long wait.
As professional traders, it is our job to stay in this flow, observing the key “make or break” skills of patience and discipline in order to make a success of it, long-term.
Simply choose a strategy which suits your personality and your availability to trade and give it a fair hearing over a decent period of time.