EXCUSES MADE BY TRADERS

by Ntombi Malatsi | Feb 22, 2016 | FOREX FOR BEGINNERS

Few common excuses that traders make

We (traders) at some point have messed up, like really messed up our accounts, especially traders who went straight to the markets and traded their real money without proper guidance/training (yours truly is as guilty as charged). I did that as well, I somehow thought I was too smart to fail but I think I missed the part that, one needs to learn first then remove the (L) and earn, all I wanted was to earn right away, I paid the price though, enough about me. This post is about the few excuses that traders (you can take me off the list now) make every time they fail. It seems like a normal thing to find someone to blame, but sometimes it is all our fault you know, listed below are the most common excuses of all times.

1.Blame it on bad luck.

Market has no favoritism, it gives everyone a fair chance to dive in. If you are facing losses day in and day out, it is not bad luck at all. You simply need to pay more attention so that you can identify the problem and find out what makes you to lose so much, but  the first thing that comes to mind is to find someone/something to shift the blame to. Lets learn to look within, before shifting the blame, because most of the time, we create the mess ourselves.

2. Blame the unexpected economic news

Ooh well, I have done this a countless times in my early days of trading. First of all, the economic news are never really a surprise, there are hundreds of sites that provide us with information and daily economic news as they unfold, you can actually check the calendar for the whole week/month or more, in that way, you’ll be able to avoid being on positions prior to the release of any important economic data. Many traders would argue that the effect of news release never last, but unfortunately, it is that same effect that never last that is the main cause of their positions being stopped out or thrown to the wrong side of the markets in a split second, creating major losses or even blowing their trading accounts, unless maybe you are trading on a monthly chart (which is rare for day traders), an interesting part though is that, the people who are forever saying that the effect never lasts are day traders who trade daily charts and shorter time frames, and they are mostly affected but they are still not paying attention, take yourself off this list and be an informed trader who listens to the market. It is our own responsibility to listen to the markets, you do not have to be a die-hard fundamentalist, but you need to pay attention, the market doesn’t know that we even exist and it does not owe us anything, click HERE  for economic calendar and be informed.

3.Blame the broker

You came across a link of a broker online, you started to talk to them and they called you to assist you to set up your account and they made all kinds of promises, how they’ll call you every day and actually trade with you blah blah (you know the story), most brokers are very supportive and they actually do that, they do call you to assist in every way possible, but they are also in business, they cannot really dedicate all their time teaching you for free , it always works better when you already know how to trade, the assistance comes in handy. It is still your responsibility to take it upon yourself to find a mentor or a teacher, read as much as you can, the assistance you get from a broker will never be enough, they are doing their part to assist you, do your part as well, find a mentor.

4.Blame the “gurus”

When a trader follows many gurus, he/she becomes more confused as to which method to follow, and it becomes dangerous when you try to trade your real money by following many methods, select few people to follow, try not to confuse yourself by trying to do everything at once, traders who trade their real money by following lots of gurus tend to fail and they experience more losses as compared to people who have mentors and follow few gurus. Remember, every guru has the ‘best’ strategy/method. I know few traders who are still failing even with the kind of knowledge that they have, the problem is when you  learn a skill and expect to make it right away, the process to being a successful trader goes like:

Learn>>Practice/Demo trade>>Go live>>Continue practicing and using what you’ve learned>> Continue Learning>>Master the skill>>Earn with ease and be a sustainable and a profitable trader forever (that is how a successful trader is born). Get yourself into this list.

But for most traders it goes like: Learn>>Practice/Demo trade>>Go Live>>Stop practicing>>Stop using the knowledge that you have>>Trade on Tips/Stop listening to your mentor>>Find a new guru>>Trade higher volumes even when your equity is decreasing>>Use new strategies (trading your real money) that you do not even give a chance to see if they work>>Join Forex forums/groups>>Get more confused and lastly, lose all your money. (that is why there are traders who are funding their accounts every month). Take yourself off this list please.

Then when all is done, you start blaming the gurus. You have a responsibility to decide how it is going to be for you. I have done all the above mentioned as well, and it got me nowhere. The only way to master any skill is to practice what you know, not adding new strategies everyday. You’ll be a jack of all trades and a master of none and you’ll never make money in Forex. Thank you for stopping by and happy new week.