Have you heard that 90% of new Forex traders fail? I am sure you have, everyone has. One point I always try to get across to new traders is the majority of new traders fail why do what the majority do?
It is actually pretty logical when you think about it.
The majority of new traders fail —> If you follow the majority you become part of the majority —> If you become part of the majority you will fail.
I discuss this in more detail in Lesson 1 of the free Plan, Implement and Make Pips video course.
How To Not Be a Follower
Avoid the hype – Every now and then a hyped up holy-grail-system comes along that promises to revolutionise your trading. Generally these systems promise easy trading with little to no time investment. It sounds so appealing that the hype around it grows and soon enough every newbie in Forex is trying to trade it. These systems NEVER LAST, why? Simply because they do not work in the long term.
Be wary of forums – Forex forums can be useful for asking simple questions. However, they tend to be a breeding ground for dumb ideas and half-assed analysis that suck newbies into bad trades. Go check out Forex Factory for example. The forum is full of trading system threads and analysis threads. New traders tend to migrate from thread to thread every few weeks because they can never find consistency. I will let you in on a secret….. consistency is not hidden in the pages of a Forex forum. Consistency comes through understanding, experience and planning.
There are thousands of newbies jumping around forums every day looking for the answer to their trading problems. Do not be part of the pack, do not do what they do!