why is it very hard to make money in forex?
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why following all technical indicators person still lose I am tired.
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14 Responses to “why is it very hard to make money in forex?”
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September 8th, 2010 at 4:44 pm
Your question is about trading, not necessarily forex. Any highly leveraged trading vehicle is going to exacerbate any problems, but the problems are with trading technique. If you’re tired, give it up. Just because it seems ideal for your situation or because it seems a great way to make money does not mean you personally are cut out to be a trader. You have to love trading to be a good trader, and you have to love to learn like in any profession. Just because you had the tools and access to an operating room, doesn’t mean you would perform brain surgery or engineering. You might as well ask “Why is engineering hard?”
Most technical traders spend their whole lives looking for the holy grail of indicators; there are literally thousands of combinations. There is no best indicator or holy grail. Just find the ones that work for you and a time frame that fits your trading style. And yes, when two or three indicators confirm each other (not conform), there are better odds of success.
But most people never address the psychological side of trading, never address what makes them trade emotionally. Many people never develop a written trading plan, or test the plan or test the plan according to the plan exactly, or trade the plan exactly. Most people never accurately define risk. It comes back to the psychological aspects of trading. Why can’t you trade according to a written plan? There’s more to it than just hitting the button when a couple of indicators confirm. People fail technical analysis, not the other way around. But people being people, they need an excuse for their failure, and it’s much easier to blame an object or method than deep introspection and honesty with oneself.
You’ll know what I mean when price comes crashing down against the trend to your previous support or fibonacci retracement and you fail to hit the button according to plan, simply because price movement is in the wrong direction to your emotions. The market is structured in such a way to compel you to act contrary to your own best interest! That is the reason why most continue to buy at highs and sell at lows. But lazy people would rather blame technical analysis and quit before they learn good trading techniques, like buying on dips instead of chasing price or where two indicators confirm.
IF you believe that success/failure is due to luck or external forces like the PPT, TPTB, GS or Ben Bernanke, you will continue to repeat your errors, and your trading career will be short lived and end in disaster. Take the responsibility upon yourself. Own it! This is difficult for many to do. Many people actually believe the future can be known and/or predicted. These are many of the irrational thinkers that blame technical analysis for their failures.
IF you need to be right and have a need to seek to control the market, you are an inefficient decision maker. It won’t matter much what method you use because it will be inefficient. But you will do better by keeping it simple so you can control it and not think too much or make complex decisions.
Like fast food, people just want it simple, in one little package, real fast, like right now. Just give me the secret to success and riches; don’t make me work or think or decide or learn or, heaven forbid, know myself and be honest with myself and responsible, etc.
It certainly takes bravery to remain skeptical, it takes inordinate courage to introspect, to confront oneself, to accept ones limitations. Scientists are seeing more and more evidence that we are specifically designed by mother nature to fool ourselves.
How else could there be so many fools and idiots, that are actually pretty intelligent?
Blaming technical analysis that is used successfully by so many, that is prevalent throughout the industry, that allows so much more than you’ve taken the time to comprehend, is like blaming your pencil.
September 8th, 2010 at 4:44 pm
Your question is about trading, not necessarily forex. Any highly leveraged trading vehicle is going to exacerbate any problems, but the problems are with trading technique. If you’re tired, give it up. Just because it seems ideal for your situation or because it seems a great way to make money does not mean you personally are cut out to be a trader. You have to love trading to be a good trader, and you have to love to learn like in any profession. Just because you had the tools and access to an operating room, doesn’t mean you would perform brain surgery or engineering. You might as well ask “Why is engineering hard?”
Most technical traders spend their whole lives looking for the holy grail of indicators; there are literally thousands of combinations. There is no best indicator or holy grail. Just find the ones that work for you and a time frame that fits your trading style. And yes, when two or three indicators confirm each other (not conform), there are better odds of success.
But most people never address the psychological side of trading, never address what makes them trade emotionally. Many people never develop a written trading plan, or test the plan or test the plan according to the plan exactly, or trade the plan exactly. Most people never accurately define risk. It comes back to the psychological aspects of trading. Why can’t you trade according to a written plan? There’s more to it than just hitting the button when a couple of indicators confirm. People fail technical analysis, not the other way around. But people being people, they need an excuse for their failure, and it’s much easier to blame an object or method than deep introspection and honesty with oneself.
You’ll know what I mean when price comes crashing down against the trend to your previous support or fibonacci retracement and you fail to hit the button according to plan, simply because price movement is in the wrong direction to your emotions. The market is structured in such a way to compel you to act contrary to your own best interest! That is the reason why most continue to buy at highs and sell at lows. But lazy people would rather blame technical analysis and quit before they learn good trading techniques, like buying on dips instead of chasing price or where two indicators confirm.
IF you believe that success/failure is due to luck or external forces like the PPT, TPTB, GS or Ben Bernanke, you will continue to repeat your errors, and your trading career will be short lived and end in disaster. Take the responsibility upon yourself. Own it! This is difficult for many to do. Many people actually believe the future can be known and/or predicted. These are many of the irrational thinkers that blame technical analysis for their failures.
IF you need to be right and have a need to seek to control the market, you are an inefficient decision maker. It won’t matter much what method you use because it will be inefficient. But you will do better by keeping it simple so you can control it and not think too much or make complex decisions.
Like fast food, people just want it simple, in one little package, real fast, like right now. Just give me the secret to success and riches; don’t make me work or think or decide or learn or, heaven forbid, know myself and be honest with myself and responsible, etc.
It certainly takes bravery to remain skeptical, it takes inordinate courage to introspect, to confront oneself, to accept ones limitations. Scientists are seeing more and more evidence that we are specifically designed by mother nature to fool ourselves.
How else could there be so many fools and idiots, that are actually pretty intelligent?
Blaming technical analysis that is used successfully by so many, that is prevalent throughout the industry, that allows so much more than you’ve taken the time to comprehend, is like blaming your pencil.
September 8th, 2010 at 4:44 pm
trading is hard, and if all you had to do to be succesful at it was look at the same indicators that everyone else is looking at everyone would be doing it. welcome to the real world man.
September 8th, 2010 at 4:44 pm
trading is hard, and if all you had to do to be succesful at it was look at the same indicators that everyone else is looking at everyone would be doing it. welcome to the real world man.
September 8th, 2010 at 4:44 pm
Trading is difficult, in my opinion, but you can be successful at it.
So don’t give up and don’t pressure yourself. I started trading forex
live in 2005. I only became profitable consistently from 2009. That
is 4 good years of torture.
But this is what I discovered, patience to wait for your market setup.
Discipline to follow the rules of your trade is the only thing you need
to be successful. Anyone can come up with a trading system of
strategy that will win 80% of the time.
The question is the implementation of the trading strategy. How do
you deal with this, practice practice practice.
I traded my $502 account to $12,666 within 2 months, when I decided
to stick to my rules no matter what. I always place my initial stop loss
and then move my stops as the markets move in my favor. If they don’t
move in my favor, I am stopped out.
There is not easy way. You must bring yourself to consistently take this
decision. It works. In your case, what I would suggest is to get a good
mentor. Someone who can evaluate your trades to help you identify what
you are doing wrong. Don’t be afraid to show your mentor your past trading
record. Once I look at my losses, I was able to pin-point the mistakes I was
making and I decided to make some changes. Once I did the gains began
to flow. For a good mentor see the resource.
September 8th, 2010 at 4:44 pm
Trading is difficult, in my opinion, but you can be successful at it.
So don’t give up and don’t pressure yourself. I started trading forex
live in 2005. I only became profitable consistently from 2009. That
is 4 good years of torture.
But this is what I discovered, patience to wait for your market setup.
Discipline to follow the rules of your trade is the only thing you need
to be successful. Anyone can come up with a trading system of
strategy that will win 80% of the time.
The question is the implementation of the trading strategy. How do
you deal with this, practice practice practice.
I traded my $502 account to $12,666 within 2 months, when I decided
to stick to my rules no matter what. I always place my initial stop loss
and then move my stops as the markets move in my favor. If they don’t
move in my favor, I am stopped out.
There is not easy way. You must bring yourself to consistently take this
decision. It works. In your case, what I would suggest is to get a good
mentor. Someone who can evaluate your trades to help you identify what
you are doing wrong. Don’t be afraid to show your mentor your past trading
record. Once I look at my losses, I was able to pin-point the mistakes I was
making and I decided to make some changes. Once I did the gains began
to flow. For a good mentor see the resource.
September 8th, 2010 at 4:44 pm
Thats the reason why you still lose
BECAUSE ALL INDICATORS LAGS!!!
By the time you enter the trade based on the indicator, the trend would have changed its course.
Price Action is KING in forex – it is what that leads the indicator.
14 years of full time forex trading experience
Asia Forex Mentor,
Ezekiel Chew
http://www.asiaforexmentor.com
September 8th, 2010 at 4:44 pm
Thats the reason why you still lose
BECAUSE ALL INDICATORS LAGS!!!
By the time you enter the trade based on the indicator, the trend would have changed its course.
Price Action is KING in forex – it is what that leads the indicator.
14 years of full time forex trading experience
Asia Forex Mentor,
Ezekiel Chew
http://www.asiaforexmentor.com
September 8th, 2010 at 4:44 pm
Why don’t you take some time to visit free websites that teach you more about Forex like babypips or welearnforex?
September 8th, 2010 at 4:44 pm
Why don’t you take some time to visit free websites that teach you more about Forex like babypips or welearnforex?
September 8th, 2010 at 4:44 pm
To answer your question why is it hard to make money in Forex is relatively straightforward.
Also there is absolutely nothing wrong with using technical indicators. It is the incorrect application of technical indicators that causes people to lose money when they use them.
One of the biggest reasons that Forex trading is so difficult for beginners is that it is difficult for them to get good trading information. These days it seems like everybody and their brother is an expert Forex trader and feels as if they’re qualified to give advice. Be very careful who you listen to. The vast majority of the Forex trading content that you will find on the web is being delivered by people who don’t even trade Forex.
Others here have given some good information. Especially those who would urge you to learn to trade Forex properly. Learning to trade doesn’t sound as sexy as using the latest greatest Forex trading robot, but in the long run learning what does and what does not work will serve you well.
September 8th, 2010 at 4:44 pm
To answer your question why is it hard to make money in Forex is relatively straightforward.
Also there is absolutely nothing wrong with using technical indicators. It is the incorrect application of technical indicators that causes people to lose money when they use them.
One of the biggest reasons that Forex trading is so difficult for beginners is that it is difficult for them to get good trading information. These days it seems like everybody and their brother is an expert Forex trader and feels as if they’re qualified to give advice. Be very careful who you listen to. The vast majority of the Forex trading content that you will find on the web is being delivered by people who don’t even trade Forex.
Others here have given some good information. Especially those who would urge you to learn to trade Forex properly. Learning to trade doesn’t sound as sexy as using the latest greatest Forex trading robot, but in the long run learning what does and what does not work will serve you well.
September 8th, 2010 at 4:44 pm
It is not so easy to make money at Forex trading. But you can learn to win and the rewards for
your efforts can be life changing. Learning a good strategy will lead you to Forex trading success. Not
having the right education is the biggest hindrance to make money in Forex trafing. Having the right mindset is another important thing for success. The correct mindset is the key element in achieving success.
September 8th, 2010 at 4:44 pm
It is not so easy to make money at Forex trading. But you can learn to win and the rewards for
your efforts can be life changing. Learning a good strategy will lead you to Forex trading success. Not
having the right education is the biggest hindrance to make money in Forex trafing. Having the right mindset is another important thing for success. The correct mindset is the key element in achieving success.