The reasons why people struggle trading in the forex, futures, and stock market
The information that we pass across in this article will help individuals better understand what we do at our online trading academy.
The reasons why people struggle trading and investing in the forex, futures, and stock market
While having written many trading and investing articles, most of the articles we wrote were mainly highlighting all successful training aspects, ranging from the formation of a trading plan to objective supply and demand trading analysis, mastering the inner mental game, and risk management techniques. Basically, the list can’t be exhausted. And what each of these articles drives at is providing help to traders and investors, regardless of their level of experience – active or newbies – helping them understand the rudiments of being a consistently profitable forex, futures, and stock trader, irrespective of the market conditions. Also, we wrote articles aimed at assisting traders and investors in preserving their capital. Basically, we hope that the information that we pass across here will help individuals better understand what we do at our online trading academy. We know that some of our readers enrolled in our online trading academies’ lifetime education programs and are eager to commence their trading success journey.
As well trained and educated trading mentors that we are, we always advise that individuals who are serious about investing and trading and are motivated to make it work, must, without exception, get themselves educated. However, this isn't the case for most. After purchasing some trading books and carrying out research on the net, most people delve into the world of trading and investment all by themselves, with the thought that they will pick it up with time. Albeit, let us be factual: the idea of making money daily by clicking some buttons is very attractive, although many still fail repeatedly. We would love to explore why this happens. Because, if you are genuinely planning to invest your money into the forex, futures, or stock market, you must adequately understand the expectations; otherwise, your money will be taken from you in a flash! And this is the uneducated nature of trading.
Factually, at the moment, approximately 80% of speculators of the retail market that are trading forex, futures, or stocks are losing money. This means that only 20% are actually making trading work. When most individuals learn about this rather-harsh trading reality, they react in either of the two ways below:
1. “This cannot be true: I know people who make money from this; I will be a part of them!”
2. “I sincerely didn't know trading forex, futures, or stocks can be this tough; if people are failing this much, can I ever make money?”
Recalling my early days of trading when I learned this, I distinctively remember that I leaned towards the second reaction. I almost got discouraged by knowing that several people lose money in the trading arena. But then, what was said to me at the online trading academy where I studied several years back changed my thinking pattern. I was reminded before I started my trading and investing education journey that doing what everyone else is doing is tantamount to expecting what everyone else will get. So, you see that your thoughts about these statistics don't really matter. Honestly, the number of failures endured by retail speculators can scare and discourage you. Alternatively, you can choose to face the challenge squarely and delve into the choppy waters without support. You should know that it is way more imperative to relax and understand the main reason 80% face such magnanimous challenges while trading and investing in the forex, futures, and stock market. Because the more you know the reason behind the failures of others, the more you can start avoiding their mistakes and do the exact opposite of what they did.
Firstly, I was somewhat lucky to be taught, mentored, and spend ample time with a few of the world's best floor traders from Chicago Mercantile Exchange and New York Stock Exchange. These traders commonly admit that trading is simple even though they do not know what is going to happen next. They acknowledge that it is human emotion that tends to get in the way. Every individual should be able to make trading profitable by learning what they shouldn't do, form a rule-based market approach, which offers objective trades of high potential reward yet low risk, and finally follow their plan with risk management practices. Of course, we know it is easier said than done. But then, it is actually simple. Trading challenges originate from the place we least expect: our mind. To excel at something, you need to do two somewhat simple things: first, you must learn how to do such a thing well; two, you need a coach / mentor – someone who knows the ropes already – to teach you. Isn't this how we learn at our online trading academy too? We learn, practice, and then do it ourselves while being supervised and monitored by those who know better and who taught us in the first place.
Why, then, do people oppose the idea of getting educated in trading and investing? While some see it as the only choice to get the right help with the right people, for many others, it seems that the reluctance to get the education always takes precedent. Having given these several thoughts, we hold a strong belief that it all boils down to nothing more than accessibility.
At the beginning of this article, we mentioned that only a 20% win, while the other 80% lose their money. For a minute, see trading like any other profession: how many top engineers, lawyers, doctors, musicians, etc., are in the world at the moment? Perhaps just 20%! These people trained themselves to learn to do what they do to the highest level and had coaches and mentors who gave them support and motivation to succeed. And we would love to think that this benefited these people in certain ways. These top professionals had to study at the right institutions before taking up their profession; even before they were accepted for training, of course, they also had to qualify!
Now, is trading something that demands a gift or natural talent of foreseeing the future? Up until now, we haven‘t heard about any crystal ball that actually worked! Knowing what to do, when to do it, and religiously following your rules is a prerequisite to trading. Trading needs to be studied and learned; it doesn't require any natural talents or gifts. Literally, anyone can trade as long as they have the right support and education. People don't get it right from the beginning because trading is always accessible to them: after reading a few books, they open an account and start clicking buttons at will. Nothing stops them at any point in time. Before one can get a job in any of the professions mentioned earlier, one needs to get the qualifications first. You won't be granted access unless you have been appropriately trained.
If this makes sense to you and you are set to begin your journey into the world of trading, then please sit back and take stock. Are you fully prepared? If done right, trading can be the best venture you can ever be involved in. Knowing why most individuals fail and not committing the same error yourself is already half of the journey to recording success!
If you want to learn more about professional trading and investing across multiple asset classes such as forex, futures, and stocks, please sign up for free at our online trading academy www.onlinetradingcampus.com and get access to a free three-hour introductory course.
Author Bio: Bernd Skorupinski teaches the undiluted truth about trading and investing at Online Trading Campus and takes you through what it takes to be a consistently successful trader. His favorite moment as a trading mentor is the way peoples’ eyes light up with excitement and confidence when they understand how Supply and Demand trading strategy works and how it can help win in the trading arena. He believes in building core values and discipline that ensures his students do not succumb to the pressures and temptations of the market. He very much believes in following plans and strategy through.