Disclaimer Futures, forex, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using these methodologies or systems will generate profits or ensure freedom from losses.
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Despite the many available courses, tools, and systems offered to Forex traders these days, the dismal statistic has remained pretty much the same: the vast majority of traders lose money. Some say it’s about 95% of all traders. This means that 5% are taking the money of the other 95%. Still surprised that some people get rich on Forex?
The question is why is this happening?
In the past, you could say that it was a lack of education, a lack of knowledge, but can you still say this today?
Every trader has access to courses, training material, practically anything you would think is required to become proficient at trading. Sure, some traders can’t bring themselves to spend any money or put in the time to really get a course and learn from it, but even those that do make an effort are often still searching for the recipe to success.
What is missing? Why is it so hard to make it on Forex?
I believe that there is one missing ingredient to success that nearly all courses and trading programs disregard: the mental ingredient.
The amount of tension and anxiety involved in trading Forex is tremendous, seeing your money disappear, feeling the elation of a win, watching the market move from side to side like a ship in a storm, it’s enough to make the strongest person dizzy with emotion.
The problem is that no matter what kind of education you have, no matter which trading system you’re working with, until you learn how to deal with you emotions, until you learn how to work within this tumultuos framework of the market and still be able to function in an objective and logical way day in and day out, one trade after another.
Your mission should be to work on your Forex Mental Fitness and become a disciplined trader, the kind that doesn’t make costly emotional mistakes. This can save you thousands of dollars in avoided losses.
Forgive me for being blunt and getting right to the point: it’s time to decide whether you’re an amateur or a serious Forex trader. It’s time to decide whether trading is like aweekend in Vegas or Atlantic City or a real enterprise for you.
I don’t care if you trade $500 or $50,000, if you spend 20 minutes each day trading or 4 hours. It doesn’t matter. It’s time that you start treating this as a business. It may not be your primary income, it may be just a little extra on the side, but if you want to make money consistently, then you’d better face up to the facts and realize that it’s time you drew up a business plan for this Forex venture you’re running and begin seeing exactly what you need to do to make it a success.
Here are some of the elements that need to be included in your business plan:
1. Your goals – This should be both general goals and specific ones. General goals are what you want to get out of Forex: secondary income, financial freedom, just a little bit extra money on the side, etc. Specific goals should be what kind of money you want to make and how long is it supposed to take you. Try planning for a year in advance at least.
2. Your time investment – How much time are you willing and able to invest in learning how to trade and actual trading. I want you to do an honest assessment of your free time and how much you can reasonably set aside for Forex related activities: going over courses, reading financial news, trading, analysis, and so on. I want you to make a weekly personal commitment to yourself.
3. Your money investment – Plan ahead how much you’re willing to spend on Forex education and tools. This is important for two reasons:
- To make sure you don’t avoid educating yourself further since it’s important for your long term success.
- To help you avoid falling in for the latest gimmick or “next big thing”. Once you know you have a spending limit, you’d be able to spend it on what you really feel will be worth your money.
4. What you want to learn next – There are many fields in Forex and you need to figure out which to master next. Write down what you want to learn: Fundamental analysis, technical analysis, risk management, and so on. Again, plan for a year in advance.
Planning ahead as if Forex was a true business, will help you improve your trading skills and the future of your business.
While many Forex traders spend a great deal of their time poring over charts filled with indicators and try to understand where the market is going purely through technical analysis methods, there are other factors that may influence market values as a whole.
Fundamental factors are economic data that can change the way traders and investors view the risks or probable direction of the various currency pairs on the market. I believe that any “thinking” Forex trader should be aware of them and take not of them in his or her trading decision.
Let’s go over some examples of fundamental factors and see how they can influence currency prices:
1. Interest rates – Each country (or group of countries in case of the Euro) can set its own interest rates. These determine, among other things, the return on low-risk deposits and bonds in that country or that currency. Naturally, the higher the return a certain currency can yield, the greater its attractiveness, so you may expect that increases in interest rates, or probably ones, can cause a spike in the value of a certain currency.
2. Financial difficulties – As can be seen by the case of Greece, major financial difficulties can weigh on the value of a currency. The major deficit of Greece, the abundance of debt, and the market concerns that it will default on its loans, have put tremendous pressure on the Euro. It is likely that the wealthier Euro nations will have to bail Greece out by pouring a lot of Euro into the market. This may reduce its value in the short and long run.
3. Commodity prices – These usually influence the price of the US Dollar as commodity prices are often quoted in dollars. It often happens that when Oil prices go up, the value of the dollar in relation to other currencies decreases since you need more dollars to buy a single barrel of oil.
4. Political events – Wars, elections, earthquakes, and other political or natural events can prove to be very dramatic in terms of currency values. This are always surprising and difficult to predict. However, these can cause massive swings in market values.
Make sure to use data as it comes out in your trading analysis. Use it with technical analysis to make it more accurate.
In a previous post, I wrote that Bill Poulos is offering a scholarship to his upcoming coaching event.
Not all traders would be able to get into this coaching even if they decide they wish to pay for it. You have to fill an application to become eligible.
You should definitely fill out the application even if you have no intention of ever signing up for this coaching for two reasons:
1. You get a lot of “on the house” Forex training material from Bill Poulos himself. This stuff is good enough to be sold as a product in its own right, so make sure to get it before it’s taken down.
2. You become eligible for a scholarship giveaway to Bill Poulos’s Forex coaching training. This is going to be one of the best ways to learn how to propel your trading skills forward, to become a better and more formidable trader and to boost your earning potential.
Go here to fill out the application: Bill Poulos Scholarship Giveaway
Now that we have discussed why you should fill out the application, let me share with you why I think that this Forex coaching may be the best thing for you. Here are 5 reasons why I think getting a Forex coaching from Bill Poulos is a good… no, scratch that, a great thing:
1. Bill is truly a gifted teacher. He may not be the most charismatic guy on the planet but he knows how to deliver material about the financial markets and Forex in particular. You will be hard pressed to find someone who knows more and teaches better than Bill Poulos and I’ve gone through a number of his courses.
2. With the coaching, you get the Forex Profit Accelerator Course for free. This course normally costs $2,000 and you’re getting it as a bonus for the coaching. This is an excellent training course and you would be wise to get it and follow it.
3. Bill Poulos is a well known expert on risk and money management, two often overlooked keys to long term trading success. Forget about suffering crippling losses. Bill will teach you everything you need to know about it.
4. You’re going to be one of a select and exclusive group of students. This isn’t some cheap product that tens of thousands of traders can get. You’re getting a major edge in the market. This is what you need to succeed.
5. This is coaching, not a course, not some email support system. There’s no better way to get the kind of training that you seek, to find answers to your questions, to deal with the problems that you may have, than with this coaching.
To sign up for the application and a chance to get this coaching for free, visit:
Bill Poulos Coaching Application and Scholarship
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