Why do so many people give up Forex Trading?
In This Video:
01:28 The Leading Cause of Forex Dropouts
02:46 Education is the Problem – not the Market
04:18 Where do you Get that Education?
So why do so many people give up Forex trading? Let’s talk about that right now!
Hi traders, it’s Andrew Mitchem here, the Forex Trading Coach and today is Friday the 29th of May and I want to talk to you about that really important topic and conversation because I want to help you avoid being in the 95% group! I want you to be in the 5% group that are making money who are enjoying their trading and doing really well. Forget the 95% – that’s where the majority are.
But why are so many people in that 95% group?
Why are so many people losing money?
Why are so many people giving up?
The Leading Cause of Forex Dropouts
Well, to answer that question, we need to come back to the beginning. You see, with Forex, it’s such an easy market to get into, it’s all over the Internet; it’s just made out to be so easy to get into everything you need – even a demo account – an easy to open live account, even choose a broker from pretty much anywhere – they’re not all good but you know, you can choose a broker from wherever you like and you need an Internet connection!
You can try trade from your phone, from your iPad, from your desktop – whatever it might be, it’s so easy. The barriers to entry are very, very low and everybody makes it out to be so easy itself because, you know, you just need this magic indicator, you need this robot, whatever it might be, or this signal service or something and it’s going to make you a fortune and solve all your problems.
The problem is, in reality, it’s not quite like that – as so many people find out – and that’s why I think so many people give up. But the problem is, and it’s not like any other industry out there at all, why is it that so many people get into this business and this market of Forex trading, yet very few seek education?
You know, I can’t think of anything else that you’d do that’s brand new to you, that you have very little knowledge or understanding of, but you don’t go out there and seek some form of knowledge and some understanding, talk to someone – some education you know.
Education is the Problem – not the Market
Why do people just throw money at a Forex account with no strategy? They don’t have any goals, they don’t have any understanding of the market; they don’t really know what they’re doing but they’re happy to throw money and because they’re happy to throw money at it, it’s no wonder that 95% of all traders are losing money and then consequently give up through losing interest or losing faith in the market.
And then, the problem is people start blaming the broker, they start blaming the market; they think that the market is trading against them, you know, whatever it might be and this is as a result of people not investing in themselves – that is the biggest problem!
So, I’m here to tell you that it does take time to be a good trader! You know, I‘ve been there myself, I’ve been right there from the absolute beginning – I just wish that when I started trading, I had someone good to go to, who I could follow along and gain a strategy from, to help me along and to shortcut those initial few years where I really wasn’t making any money!
Doing a lot of research and going a lot of up and down on my account but I was making nothing really. So, look at education as an investment. If you really are serious about starting trading, look at spending some money first on education. You know, you can have a huge account but it means nothing if you don’t know how to trade it.
I get the opposite end of the scale quite often – people coming to me saying, “Oh, I can’t afford education – I’ve only got $1,000 in my account.” You know, $1,000 is almost pointless in your account if you still don’t know how to trade it – you have to have the education first. Because get that right and the money will follow afterwards!
Where do you Get that Education?
But education, again, like most things out there is not just a one-size-fits-all. It needs to be education from someone who’s actively trading day-in and day-out. Not someone who’s running around the world on the stage, getting paid a fortune for just promoting because they are a really good speaker. You need someone who’s going to help you on a day-by-day basis with a practical, easy to understand system. Watch someone trading; gain knowledge and understanding from the market on a daily basis.
You need that help from a Forex Trader – a real trader – someone who’s out there trading day-in, day-out; who’s done it for years, who knows what’s happening in the market; who’s seen all sorts of people – from absolute beginners to experienced people; all types of traders from different places, different backgrounds – and that’s what you need as a trader because ultimately, you have two choices:
You either understand trading and you do really well and you join the 5% group or;
You join the rest!
And, you really don’t want to join the rest. 95% people are going that way – don’t join them!
If Forex is something you really are interested in, come along to the five-percent group – the one’s that are making money, the one’s that are enjoying their trading, understand the market and know what they’re doing. If that sounds like you, give me a call or drop me an email: [email protected].
Have a look at my website, there’s heaps of information on there to help you get started with your trading.
Look forward to helping you really soon!