If you want to learn currency trading and what it takes to win then you should make this story part of your essential for ex trading education. In just 14 days ordinary people with no experience learned to trade and make hundreds of millions of dollars. How did they do it?
In the nineteen eighties trading legend Richard Dennis decided to prove that anyone could learn to trade, with the right forex trading system and mindset.
He therefore gathered a group of people together who had no trading experience, who were of all ages, both sexes and of all educational standards. The group was diverse consisting of a security guard, to an actor.
He then taught them to trade forex and after 14 days gave them trading accounts.
This group made $100 million dollars in 4 years and went on to become legends.
So how did they do it -after all 95% of traders lose what made them different?
Dennis knew that the problem with traders is not so much method but mindset – they simply cannot stick to a plan and keep going when they incur losses. So although he taught them a simple method, he didn’t tell them blindly to follow it, he taught them to learn it and have confidence in it.
You cannot have discipline without confidence.
Even when your confident, its hard to keep trading when the market hands you loss after loss and makes you look a fool.
It’s a fact that anyone can learn to trade yet, few succeed and the reason is they either get the wrong information or simply cannot stay disciplined.
Most traders are simply unprepared for the fact that they must execute rules and stay on course when they lose trade after trade and don’t believe all the rubbish you read online, about regular income and 90% accuracy – that’s not the real world.
You can win at forex trading but you must be able to take losses to win longer term.
Most traders simply don’t have the discipline to do this.
We don’t have time to explain all the aspects of trading discipline here but it’s hard to achieve but that’s why traders who can trade with discipline are so successful – Dennis proved it.
The forex trading system used was simple ( essentially a long term breakout strategy) but it was the mindset he taught the traders – to stand on their own two feet, be confident and take short term losses, to seek longer term gains which was so important.
If you can learn a simple forex trading strategy, get confidence in it and apply it with discipline, you can win.
Sure its not easy, but you wouldn’t expect it to be with the rewards on offer.
So if you want to learn currency trading the right way get a simple forex trading strategy and focus on your discipline and remember if you can’t trade a system with discipline you don’t have one!
There are big rewards to be made but your on your own and must have courage, confidence and conviction in what your doing – do that and you can enjoy spectacular currency trading success.
By: Monica Hendrix
Posts Tagged ‘Losses’
Learn Currency Trading – How Did These Traders Make Millions After Two Weeks Training
March 26th, 2010Trading Emini Futures – The Failure to Cut Losses Short Revisited
March 26th, 2010
Emini futures, or simply eminis, are smaller-sized contracts of “full-grown” futures contracts that have been around for decades. Unlike the latter that have been traded on physical exchanges, eminis have always been traded electronically, allowing retail traders with access to the Internet to compete against institutional traders from the comfort of their homes or home based offices.
Futures offer much greater leverage than stocks or bonds, and practically only trading currencies on the Forex can provide even better leverage. While this leverage can be also very risky in the hands of unskilled traders, this somehow has not prevented wannabe traders from flocking to emini futures or Forex.
Trading eminis is not easy, although it can be mastered given enough time and dedication. The basic trading rules apply here just as in trading stocks or bonds, but due to this enormous leverage following these rules is even more important than in stocks or else it’s very easy to end up blowing one’s trading account in no time.
One of such rules insists that you “let your profits run”. Another urges you to “cut your losses short.” Both make a lot of sense and when combined, they give rise to much more intelligent trading.
Let us discuss the latter here as it seems to be of even more importance than the former. This is so because ignoring this rule is a sure path to ending up with a totally depleted account relatively quickly when trading emini futures.
Yet, this rule is often violated despite the grave consequences that doing so entails. Why is it so, one can wonder. Let us address this issue here as that is not always done in an exhaustive, comprehensive manner.
There is no doubt that trader’s ego is involved in this process. Most humans, traders being no exception, do not like to admit that they have made a mistake, so they would rather wait for things to somehow get worked out in their favor while they adjust their stop-loss and keep going deeper into the red zone. This is often no more than wishful thinking that masquerades as eternal hope. Yes, it is true that to be a good trader one has to be an optimist, but one also has to be a realist and being self-disciplined. Violating basic rules of trading is hardly a sign of solid self-discipline.
But there is also another reason why overriding this rule often takes place. At the core here seems to be the lack of confidence in one’s trading methods. This is what also can make the trader to hold to his losing position because he does not believe that he will be able to get a better trading opportunity. Had he believed a much better opportunity is likely to present itself while he is stuck with his loser, he would have cut it much faster.
The moral from the last observation is this: if you are considering trading emini futures or any other market, for that matter, you want to make sure you have a good solid strategy that you trust as this can only help you to cut your losses short.
By: Waldemar Puszkarz
