COPYRIGHT Ó 2009 BY SHAHRUL NIZAM HUSSIN
Q1 : How come every time I opened a position I am already losing money?
A1 : This is due to spread imposed by Brokers
Q2 : How come I always entered wrongly?
A2 : Lack of patience and analysis could be the main keys. Speculating wrongly could be another factor.
Q3 : How come I always quit a profitable trade too early?
A3 : You are afraid that your winning trade could turn to a loser if you don’t act fast enough
Q4 : How come I lost too much money with FOREX?
A4 : You don’t have a sound money management system, probably risking more than 3% in each of your trade.
Q5 : How come I always ride a losing trade, instead of quitting and come back later?
A5 : Most of the time, it is due to you cannot take small losses and the habit of always adjusting your stop loss. Fighting the market is not a wise decision. You are being irrational and losing control on your single trade, resulting in a complete wipe out of your overall account. Most probably you don’t have a trading plan and system at all. Wishful thinking is the main culprit too.
Q6 : How come I always opened a position every time I sit in front of my trading station?
A7 : You are a jumper and does not have the discipline and patience to wait for the best moment to enter.
Q7 : How come the market hardly had a breakout when I plan to swing trade my position?
A7 : It is not meant to be and you are wishing for the market to move to your desired direction whereas the market thinks otherwise. Stay patience, it will come.
Q8 : How come the price never move in a straight line?
A8 : It never will. Buying and selling will always keep the pair volatile, big or little. There are always buyers and sellers in this market.
Q9 : How come small traders always lose money?
A9 : This is not true. Big time traders lose money too, with even bigger amount. To make money in FOREX regardless of your account size, we should take ADVANTAGE of the price movement instead of wishing the price to move in our favour. There is no one who can control the market hand. It moves whenever and wherever it wants – regardless what the report says. Respect the market and do not mess with it. They have no mercy on your account, at all.
Q10 : How come I always miss the BIG MOVE?
A10 : This is not your fault as market breakouts could happen at any time, even during the early Asian Session. This is the advantage of full time traders compared to those who trade on part time basis. Anyhow, you must understand and plan your trade accordingly as on occasional basis, market made a big move with a reason, and you have to find out why. Most of the time, it is probably due to major economic data release, speculation or statement issued by certain respective countries especially Japan, UK, Europe and United States of America.
Q11 : How come it is not as easy as I thought and told to be?
A11 : Making easy money with forex is a propaganda so that more and more green traders come to the market with new and big money. Technically speaking, the trading operation itself is easy as it only involves BUY, SELL and CLOSE, unlike operating any other machine. Some even use EA’s or a robot that is operated simply with a single click of a mouse. Anyhow, the truth is otherwise. Simply buying and selling a pair blindly is a sure way to clean your account. You must take an educated approach to trading in order to survive and make consistent profit in the long run. Losses are inevitable but controlling your losses when you get it wrong is the utmost importance for successful trading.
Q12 : How come not everyone can make money in this market?
A12 : This is a very good question. You must understand the concept of zero sum game. It is either you take the money away from the market, or you giving YOUR MONEY to the market, hence creating an equal balance in the market equity. The only fair thing that you have is control over this matter by trading wisely. The way I look at it is there is no such thing like everyone can make money in this market. That is why I do tell my students that you cannot be averaged to become a consistent winner. Life itself is not fair, so as trading. Imagine a war without a winner, a football game with a draw result, or a CEO who earns as much as his cleaner. It is not going to happen. There is and will always be one Cristiano Ronaldo in the football world. If all footballers in the world could play as good as him, then FIFA will be having trouble in deciding who deserve the footballer of year award. But as a smart trader, you have a choice whether to make or lose money by taking an ingenious approach, education, skills and experience by constantly learning.
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