Trading on the financial markets by nature is a very difficult skill to master, and one that is available to all who wish to learn the tricks of the trade. However, that being said, not everyone can actually do it by themselves and when they try, they fail and sometimes they fail big! There are a lot of reasons why some people fail to hit the mark when it comes to trading and when you read about why some people have failed and listened to what they did, the results are pretty astonishing.
The Forex market is largest and most accessible market in the world, and is open to absolutely anyone and the fact that it is so open and available doesn’t help people.
One of the main reasons why new traders fail is due to the lack of discipline when it comes to the financial markets. Most have been drawn in by marketing ploys with the promises of being able to earn hundreds, if not thousands of dollar per week by doing virtually nothing. Well let me tell you, trading is a full time occupation and should be treated like one. No successful trader began with spending 30 minutes at their computer screens every day and pressed a few buttons and made thousands of dollars in the space of a few minutes, it just doesn’t happen like that.
Keeping your emotions in check is also part of maintaining discipline, and too many new traders aren’t experienced enough to know any better, because for the first time they are trading with real cash and they let emotions get the better of them. Experiencing huge losses is an emotionally difficult thing to handle, there’s no shame in admitting that, but it is what you do next that counts.
Trading without a proper plan is another leading cause of why traders fail, because failing to prepare is preparing to fail as the saying goes. A successful trader is one that has formulated a tried and tested trading plan, and knows exactly what he or she will be doing on a day to day basis. Following and sticking to a basic trading plan can help traders and investors to swerve some of the most common trading pitfalls, and if you don’t have a plan in place then you are setting yourself up for a one way trip.
How can traders and investors avoid making these mistakes and become successful traders? The best way is to find themselves a mentor who has been there, done it and has got the t-shirt to prove it. Statistically, those who have mentors to begin with tend to be more successful than those who choose to do it by themselves, and the reason for this is because they have received guidance.
Guidance in helping them form a plan, as well as helping them avoid making very easy and common mistakes that they themselves made when they first started. Trading is a long game and not a one hit wonder, and in order to be successful one needs to have proper guidance from a mentor, and when you have a mentor the road is much clearer and will evidently be much easier as time progresses.
Mentors are a great asset that pays dividends in the long run, by helping you manage your capital, as well as your risk so that you don’t risk too much on one trade. However mentors are there for support more than anything, they aren’t going to develop a plan for you but they certainly help you as much as they can in helping you build a plan that is suited to your character and style of trading.
They say that during the first 3-5 years of any trader he will only lose money. The greatest benefits of having a Mentor is not repeating the same mistakes every beginner does. Guiding you to the right material to learn, helping you to get to know who you are as a trader and be there for you emotionally when the times get rough will be the crucial advantages you can acquire by having a personal Mentor.