In a famous trading experiment, it was proven that anyone could learn to trade, learn quickly and make huge profits and in the example enclosed it was millions. Let’s look at what you can learn from this experiment…
In the 1980s, trading legend Richard Dennis taught a group of people with no experience to trade and they ranged from a security guard to an actor, they were of both sexes, all ages and none were rocket scientists.
They got two weeks training and then were set off to trade and made hundreds of millions of dollars. So if anyone can learn to trade, why do the vast majority of traders lose? The answer is in the experiment and you should make it part of your Forex education. Forex trading is simple to learn because all you need is a simple system! The system the traders learned was basically a long term trend following breakout method.
Simple systems work best, because they are more robust than complicated ones and this is proven by the fact that all the advances we have seen in technology have not increased the number of winners.
The ratio has remained the same for decades 95% lose and only 5% win.
So what is it that separates winners from losers? There are two key points to consider.
1. You have to Deal with Losses
This means money management needs to be strong. Despite what all the get rich quick vendors will tell you, you need to trade through periods of losses that last week on end and preserve equity, until you hit a home run.
This is hard and can only be achieved if you have a disciplined mindset which is the subject of the next point.
2. Discipline is the Key
Discipline is needed, because when you lose, your emotions come into play and you need to carry on even when the market makes you look a fool. Discipline comes from knowing what your doing and having confidence.
It’s the one trait most traders lack and if you don’t have the discipline to follow your trading system you simply don’t have one!
Forex Trading is a Combination of method and Mindset
Anyone can learn a forex trading strategy for success but the key is executing it with discipline. So when you learn to trade you need to – get a simple system, know what you’re doing, have confidence in the logic and then you will have the discipline to trade and win.
You can learn and you can win but don’t think you can follow a junk robot, guru or mentor and be given success – you can’t.
You need to learn the basics, get confidence and rely on yourself. If you do this, you will be rewarded with a great second or even life changing income.