During all of my years of trading, there have been many statements that became known as truth. One of the key statements was that newbies have a 90% chance of going out of business within the first 2 -5 years. Yes, you heard me
correctly - within 2 - 5 years, any new Forex trader has a 90% chance of losing all of his money and he can either start completely over or quit Forex altogether. The fact that many beginners lose their entire investment within a 5 year period is astounding. It shows that one very important principle is lacking. What is that ever elusive principle?
I believe that anyone can trade and be successful at Forex trading. It only takes 3 main ingredients; much persistence, knowledge, and good ole fashion money management to be a great Trader. An experiment can be done and I believe I already know the outcome. If you put two great traders on the opposite side of a position and let them both trade, my belief is that most often than not, they both would probably wind up making money from the trade.
Just as I already know the outcome of the above scenario, the opposite would be true if you were to put two novices in the same spot. Most often, I believe, they would BOTH be likely to lose. What would make the difference? The reason that 90% go out of business within a few years; the reason that novices always seem to find a way to lose is quite simple - trading is mostly the art of managing the unknown. That's why a great trader ALWAYS employs the use of good money management.
I have been saying this for years, "to be a success in Forex, Traders need to become efficient in not only understanding analysis & data, but also in their ability to properly manage their money & position. That is the number one reason that this Forex "game" is hard, though the rules are quite simple - to be a winner you must have a capability as a good analyst AND an excellent risk manager.
I am going to let you in on a little secret (that only successful traders know). The ONLY way that I have been able to last so long in this difficult business is that I have learned how to control risk. One of the ways that I've achieved that is by always cutting my position in half once a short profit target is met. I have found that a meager profit is way better than no profit, any day. Since there is simply no way to know if every one of your trades will be successful, by taking small profits, you put yourself in a favorable money-management position.
Visit us @ NBCExchange for more details of how to become successful in Forex in 90 days or less. TODAY IS YOUR DAY!
Mr. Brewer
NBCX Founder
NBCX Founder
Article Source: http://EzineArticles.com/?expert=A_C_Brewer
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