By James Woolley – Many people in the forex industry will tell you that everyone has the potential to become a profitable forex trader. However I don’t agree with this at all because there are certain people out there who simply do not have the right character traits to succeed.
As I have pointed out many times before in previous articles, it is believed that only around 5% of people who trade forex are actually profitable. Therefore a whopping 95% of people end up losing money. There are obviously many reasons why this is the case. It’s mainly down to the fact that the system they use is unprofitable in the long run. However the personality of the trader also plays a major part.
To succeed in this very challenging industry you obviously need a great deal of discipline, as well as a real determination to succeed. Hardly anyone is profitable straight away. In fact it can take some people months, if not years, to come up with a profitable trading system. However if you don’t remain committed to the cause, then you will never fulfil your dream of becoming a wealthy and successful trader.
It’s not just about finding a profitable system either. Some people will develop what appears to be a highly profitable system and still manage to lose money. This is because they will often lose their discipline after a few losing trades and start chasing their losses, placing impulsive and reckless trades. They may even keep switching to different trading methods all the time in order to find ‘the perfect system’ that hardly ever loses. The fact is that some people cannot handle losses very well at all.
Successful traders, however, will learn to accept them because there isn’t a trading method out there that is able to generate winning trades every single time. They know that in the long run the winning trades will more than compensate for the losing ones.
So before you start developing a serious interest in forex trading, you should ask yourself whether you have the motivation and the required discipline needed to succeed. It takes a certain type of person to not only find a profitable system in the first place, but also to stick to this system when it goes through a bad patch, which it inevitably will do at some point. If you can handle losing trades and have a determination to succeed then you may well join the 5% of traders who are making a very good living from currency trading.
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