One of the main reasons most merchants fail in the forex marketplace … … is because they end up getting trapped to what I call, the “Cycle of Doom”. So, what is the Cycle of Doom? I hear you call! Well, the Cycle of Doom is basically this…
Let’s assume now, you start off trading the forex marketplaces. You’ve got yourself a strategy. Now … … you might have developed the strategy yourself. You might have copied it from another successful trader. Indeed, you might have bought it from somewhere on the web or so forth. So , now you have your strategy and you’re about to start trading this with live money. You start putting the initiation and off the bat, you start making some fund! Everything’s going great. Then the inevitable happens. You start losing some money. The strategy starts…
…taking money away from your trading report. Now, this doesn’t feel comfy, so the more common … … thing you do when you start to lose fund is you start to doubt the strategy. So “were starting to” tweak the strategy, you make … minor changes to the strategy. And then, you get back trading again, and of course “were starting to” shape some money again! And now, you have the perfect strategy! But then again, the inevitable will happen.
You will start to lose fund. Every strategy will go through its lose dates. But you doubted, you start to mistrust your strategy. So again, you start to tweak, you induce further, minor modification of the strategy, and off you go again! It starts to make money. Same thing happens, you start to lose fund, and you tweak again. Eventually, after tweaking so many times you’re going to have completely lost faith in that strategy. You’re going to shed it out, and you’re going to go and search for another strategy! You’re going to hop between that old strategy and a brand-new strategy. The same thing will happen, you start to make money…
…and then the inevitable happen, you’ll start to tweak it, and then round and round the circle, the cycle of doom, “theres going”. Hop-skip and changing between strategies in the hope that you’re gonna find that Holy Grail. Well, get this, It doesn’t exist! How do you make sure you don’t get trapped in that cycles/second of doom? Well, first thing you need to do is you need to have confidence in the strategy that you’re applying in the market. Well, how do you gain confidence in your strategy? Well, you need to fully … … backtest the strategy. You need to throw it through all the historical data, so you know the characteristics of that strategy.
You know how it’s going to perform in … … winning dates, and you know how it’s going to perform in the lose dates. And it’s only then when you are familiar, and … expect to have losing intervals that your not going to lose faith in that strategy, moving forward …. … and you’re gonna persist … … trading that strategy, knowing that it’s going to come back and give you the profits that you so … … longing, and that you so you’ve seen in the back testing. That’s one of the main reasons, why most traders fail in this business. The other main reason I conceive, why a lot of merchants fail in this business is because they come in with…
…completely, the incorrect promises. Now, they’ve read all the … … marketing publicity from the gurus and the lecturers; how they are able to commerce from the beach, you can give up your day job, you can tell your boss to go and jump in the lake. You’re now a … … Forex trader and you don’t need to do the working day chore anymore! Well, that’s comple hogwash! It’s not gonna happen overnight! The other thing, you know, misguided … … bs that’s out there is that you can start off trading and make a ton of fund with a $500 trading account! Again, “thats really not” was gonna happen. Now, that’s not to say you can’t make a decent living with a small trading account, but it’s going to take time and it’s going to take work on your behalf. Why do you think it is? The brokers give you such bonuses to come and join forces. If you put in five hundred dollars, they’ll match it with five hundred dollars.
They do that for one most important reason, because they know you’re gonna blow that trading report! Let’s assume, a agent signs up 100 new clients a few weeks, each with a … …$ 500 trading account, tiny trading report. Yeah? Now, they know that you’re gonna lose that fund! That hundred dollars, that hundred clients, a few weeks, is a two-and-a-half … … million-dollar-a-year business for that agent, because they know that you’re going to jolt that fund, because you’re coming in with the incorrect … … expectancies. You need to be … … realistic about what you can achieve in the Forex market. A hedge fund, hedge fund manager would dedicate his right arm, for example, to have a 25 percent…
…return of investment. Imagine, you start off with a 500 dollar trading account, and you have a great time. You’ve stirred … … 25% on your initial … … deposit with your brokerage. That’s about 120 bucks, $125 or whatever it is now. That’s hardly enough to pay your internet! But you’ve got to make sure that you’re coming into this with the right anticipations. As I said in future videos, I’m going to show you how they are able to grow tiny reports into a lucrative business.
Do make sure, you check out my videos on that! Also, the other main reason why people lose fund in this business is they over leveraging. Okay? They’re taking on … … unnecessary probability. And why are they taking unnecessary risk? It’s because they have unrealistic goals. Again, you’ve got to ask yourself a question. Why is it that the agent will give you, 100, 200, 500 to one leveraging? Because they know the greed mentality of most people! You’re gonna lose that leveraging, and you’re gonna blow and wipe out your trading report! So make sure you don’t get trapped in the cycle of doom. I’ll explain about that in farther videos, as well. Make sure you have…
…the realistic promises about the Forex market and what it can deliver you. If you can start off and … get your manager around those two realities, then you’re gonna be halfway there to becoming a successful trader. Now, that’s about it for this video! If you like the video, give me a thumbs up. If don’t like the video , no problem, give me a thumbs down. Any subjects at all, any comments, if you detected yourself in the cycles/second of doom, let me know! I’d love to hear from you; hear your … experiences, and see if we can help you! So look, I look forward to seeing you on the next video! In the meantime, best of luck with your trading struggles !.