Hello my dear Singapore Forex traders. Being social creatures and living in a community, most of us have similar instincts and desires. Therefore in some situations our actions and reactions on the same things might be similar to other people. Besides psychologists say that our behavior usually reflects the behavior of others.
This is a simple psychology and this is the way the world lives. But for a person who wants to become a successful Forex trader, this is a bad news.
Why are there so little successful traders?
Much has been said about how hard it is to succeed in Forex trading, but what most people do not realize is that trading is not so difficult because only a minority of traders win, but because the successful traders should be the minority. This what makes the Forex trading so complicated.
As you can see, successful trading is not equal to passing an exam in mathematics or passing a driving test.
On exam, if all students have answered all the questions correctly, they all get an “excellent” grade. If only few students receive an “excellent” grade, it shows that the exam was difficult.
But in online trading it doesn’t work the same way.
If you get an “excellent” degree it does not mean that you will be successful in trading. The profits in Forex are strictly limited.
Here is a great example of this idea:
Imagine that there only 3 Forex traders in the world and each of them starts with $1,000 trading account.
In case of continues trading there are only 2 possible outcomes:
1. One trader makes money (for example, $400), and two traders lose (for example, -$200 and -$200).
2. Two traders make money (for example, $400 and $400), and one trader loses (for example, $800).
In the first example, a successful trader is in minority.
In the second example, however, the most successful traders are in the majority but this is only at the first glance. What if an unsuccessful trader loses all his money?
Then the two remaining traders have to trade with each other, until ultimately, only one of them survives. A losing trader will join the one who lost all his money before and therefore they will form a majority.
So, as you can see, the natural and logical outcome of Forex trading is that the number of winners will always be in minority .
This will happen regardless of how “easy” or “difficult” the Forex trading is. The final result of trading depends on the structure of the game.
How can you enter the circle of successful traders?
So we have agreed that:
• Most people have similar instincts and behavior
• A trading game is designed in a way that the number of successful traders will always strive for minority.
The conclusion that we can drive from the example above is that in order for you to become a successful trader, you probably need to learn to think and act differently from how other people usually think and act when trading the Forex market.
Are you trading like other traders?
If successful trading were a natural and intuitive act, most of Forex traders were successful traders.
But, as you already know, this can never happen, because the number of successful traders will always strive to minority.
The sad truth is that the profits in Forex trading can only be accumulated at the expense of other traders. There is no other way to making money in this business. Technically it is impossible to make everyone earn money in online trading. After all, if you’re selling, someone has to buy. And if you are winning, someone has to lose.
The next step
So, after reading the information above, I want you to start thinking about the way you trade financial markets. Try to look at your strategy, emotions and money management from aside. Do you act like everyone else? Do you follow the primitive instincts of the crowd? Or do you have your own vision and approach? What advantages do you have?
Disconnect yourself from social networks and other disturbing factors for only 5 minutes and think. Think how you can be different and create your own original approach to trade financial markets.