You're never going to make any money trading the Forex market! Trust me! I'm a thirty-years experienced veteran trader.
Hey there! Now, some of you may have already seen this video that we're uploading today.
And that's because for some strange reason, the original version had its ranking removed by YouTube.
Now, this could be a number of reasons possibly, because other channels have been stealing our content...who knows?
Either way, considering the exposure we were getting and the relevance in the topic that I was discussing, we're going to reupload it because...
...I think it's a real shame.
We were helping so many traders learn a very valuable lesson. So, for all you new and aspiring traders,
Thanks for tuning in and I hope you enjoy it!
One of the main reasons why most traders fail in the forex market...
...is because they end up getting trapped to what I call, the "Cycle of Doom".
So, what is the Cycle of Doom? I hear you cry! Well, the Cycle of Doom is basically this...
Let's assume now, you start off trading the forex markets. You've got yourself a strategy. Now...
...you might have developed the strategy yourself.
You might have copied it from another successful trader. Indeed, you might have bought it from somewhere on the web or so forth.
So, now you have your strategy and you're about to start trading this with live money.
You start putting the trigger and off the bat, you start making some money! Everything's going great.
Then the inevitable happens. You start losing some money. The strategy starts...
...taking money away from your trading account.
Now, this doesn't feel comfortable, so the most common...
...thing you do when you start to lose money is you start to doubt the strategy. So you start to tweak the strategy, you make...
minor changes to the strategy. And then, you get back trading again, and of course you start to make some money again!
And now, you have the perfect strategy!
But then again, the inevitable will happen. You will start to lose money.
Every strategy will go through its losing periods.
But you doubted, you start to doubt your strategy. So again, you start to tweak, you make further,
minor changes to the strategy, and off you go again!
It starts to make money. Same thing happens, you start to lose money, and you tweak again.
Eventually, after tweaking so many times you're going to have completely lost faith in that strategy.
You're going to throw it out, and you're going to go and search for another strategy!
You're going to hop between that old strategy and a new strategy.
The same thing will happen, you start to make money...
...and then the inevitable happen, you'll start to tweak it, and then round and round the circle, the cycle of doom, you go.
Hopping and changing between strategies in the hope that you're gonna find that Holy Grail. Well, get this,
It doesn't exist!
How do you make sure you don't get trapped in that cycle of doom?
Well, first thing you need to do is you need to have confidence in the strategy that you're implementing in the market. Well,
how do you gain confidence in your strategy? Well, you need to fully...
...backtest the strategy. You need to put it through all the historical data,
so you know the characteristics of that strategy.
You know how it's going to perform in...
...winning periods, and you know how it's going to perform in the losing periods. And it's only then when you know, and
...expect to have losing periods that your not going to lose faith in that strategy, moving forward....
...and you're gonna continue...
...trading that strategy, knowing that it's going to come back and give you the profits that you so...
...desire, and that you so you've seen in the back testing. That's one of the main reasons, why most traders fail in this business.
The other main reason I think, why a lot of traders fail in this business is because they come in with...
...completely, the wrong expectations. Now, they've read all the...
...marketing hype from the gurus and the educators; how you can trade from the beach, you can give up your day job,
you can tell your boss to go and jump in the lake. You're now a...
...Forex trader and you don't need to do that day job anymore! Well, that's comple hogwash! It's not gonna happen overnight!
The other thing,
you know, misguided...
...bs that's out there is that you can start off trading and make a ton of money with a $500 trading account! Again,
that is not going to happen. Now,
that's not to say you can't make a decent living with a small trading account,
but it's going to take time and it's going to take work on your behalf.
Why do you think it is?
The brokers offer you such bonuses to come and join them. If you put in five hundred dollars, they'll match it with five hundred dollars.
They do that for one main reason, because they know you're gonna blow that trading account!
Let's assume, a broker signs up 100 new clients a week, each with a...
...$500 trading account, small trading account. Yeah? Now, they know that you're gonna lose that money! That hundred dollars,
that hundred clients, a week, is a two-and-a-half...
...million-dollar-a-year business for that broker, because they know that you're going to blow that money, because you're coming in with the wrong...
...expectations. You need to be...
...realistic about what you can achieve in the Forex market.
A hedge fund, hedge fund manager would give his right arm, for example, to have a 25 percent...
...return of investment. Imagine, you start off with a 500 dollar trading account, and you have a great year. You've made...
...25% on your initial...
...deposit with your brokerage. That's about 120 bucks, $125 or whatever it is now.
That's hardly enough to pay your internet!
But you've got to make sure that you're coming into this with the right expectations. As I said in future videos,
I'm going to show you how you can turn small accounts into a lucrative business. Do make sure, you check out my videos on that!
Also, the other main reason why people lose money in this business is they over leverage. Okay? They're taking on...
...unnecessary risk. And why are they taking unnecessary risk? It's because they have unrealistic goals. Again,
you've got to ask yourself a question.
Why is it that the broker will offer you,
100, 200, 500 to one leverage?
Because they know the greed mentality of most people! You're gonna lose that leverage, and you're gonna blow and wipe out your trading account!
So make sure you don't get trapped in the cycle of doom. I'll explain about that in further videos, as well. Make sure you have...
...the realistic expectations about the Forex market and what it can deliver you. If you can start off and
...get your head around those two facts, then you're gonna be halfway there to becoming a successful trader. Now,
that's about it for this video! If you like the video, give me a thumbs up. If don't like the video, no problem,
give me a thumbs down. Any questions at all, any comments, if you found yourself in the cycle of doom,
please let me know! I'd love to hear from you; hear your...
experiences, and see if we can help you! So look, I look forward to seeing you on the next video! In the meantime,
best of luck with your trading endeavors!