Every time I have the opportunity to talk with people, one of the most important questions I ask is, ‘why are you trading Forex,especially, the Boom and Crash Markets? The regular reply is ‘to make money’.
Whenever I get this reply, I always smile because I can easily know what befalls those whose sole interest is to just make money.
Forex trade both it in the crash and boom markets and currency pairs is much more than just money making. It is a career on its own. Forex helps you know what is happening in the world. It is an easy way to know how the global economy is and how you can use the information for your ultimate good. In as much as making money is the ultimate aim of every business, your success or failure in Forex absolutely depends on how well informed you are or can be as regards the methodologies.
Today, I will be sharing with you why people quit trading crash and boom markets. And I will interchangeably use Forex as a general market term for boom and crash markets. Somehow, I have this feeling that you will see the common mistakes and misconceptions you had about Forex; most of which could be the reason why you are not profiting in your trades. As you identify these pitfalls, I desire that you seek knowledge and grow.
Why Most Traders Quit Trading Boom and Crash Markets
1. Forex trade is for men and women who are not weaklings.
Forex is for the strong and courageous. If you are a type that desires approval or needs courage from others, then forget it. You will not survive for long in the market. This is because you need to draw courage from your within. You need to know that you can succeed and then find out how to succeed. To do this, you will need to remain courageous despite the days, weeks and months if not years of not having periodic returns from trades. This is because, without the courage factor, you will quit. To fuel your daily courage, I always encourage traders to invest in means that will bring knowledge. That is because, the secret of your success is in the pages of a books or in seminars and other lessons that could be drawn from a coach.
2. People quit Forex when they do not make the type of money, they were told they could make in a short time.
Like I often say, Forex is not a get-rich-quick business. Forex does not make anybody rich quickly. Anybody that you have succeeded in Forex has spent time, energy, days and nights in study and personal development.
However, when you meet these guys in their glory days, they tell you the prospects of Forex without sharing the struggles. Do not be deceived. There is a struggle you will go through and if you are not patient with yourself to learn the basic skills, you will quit. I dare you to challenge anybody that quit Forex and you will be amazed that this is one of the main reasons.
But, does this mean that Forex cannot make you rich? Sure, it can. In fact, Forex will make you rich quicker than you can imagine (even when it is not a get-rich-quick business). How? Because when you have gained mastery of the basic hidden secrets in Forex, the losses and delay you encounter during the early period of the trade can be gotten back in a few weeks.
3. People quit Forex because of haste.
Haste as in, impatience. We are in a time where the rat-race of quick-quick syndrome has taken over everything. Even in the financial world, we see the quick-quick syndrome in our transactions and other financially related matter. Because of this, boom and crash traders go out scouting out for new strategies daily. They neglect the culture of growing their trading skills. Without proper understanding of the boom and crash market, traders use these new strategies to rush into the market with a belief that they will come out smiling with massive profits. And like a joke, if you rush into the market, the market will make you to rush out.
This is because, Crash and Boom markets does not operate the way many traders assume. You need (not necessarily new strategies but) patience to have a timely entry and exit (strategy irrespective). Timely entry and exit can only be in place when impatience is taken care of. It takes patience to wait for the market to show you when to enter and exit. So, avoid haste!
4. People quit Forex markets because of consistent losses.
In every business, profits and losses are the end result of transactions. However, consistent losses seem to be the bane of many traders of boom and crash owing to the presence of spikes and drops per every 500 to 1000 market movement (tick). Well, nobody loves to be on a draw down. But, when it becomes a part of your daily trade, it then becomes a problem. How do I know this? Because, I have been there.
Losses make you either quit and look for something else to do with your money or, make you find out why you are not succeeding. Many traders rarely want to know why they are losing. They are not just happy that they have lost. Without trying to know what they did not do right, they quit. If you find out why they lose consistently and tell them the right thing to do, it is either too late or just another empty promise.
This is the main reason why Forex traders will tell you that Forex trade is not for everybody. Now, you know who Forex trade is not for. These group of people (quitters) are the ones telling you, Forex is not for me. Trading is not my thing. But, if they know what you now know, will you think like them? Yes, there are other set of people who quit trading because of time and other demands or personal interest. These ones may encourage you to make out time to learn. Forex is not for ‘assumers‘. Its hard work. The truth is that, many traders who are successful today have, in more many occasions than you can imagine feel like quitting. Myself inclusive. What makes them continue is PROOFS. Proofs that there is a way to succeed in trading and then following the rules.
If Forex has made anybody rich, you can be the next to share your proof.
5. People quit trading boom and crash because of dishonesty.
I have met many people who tell me that Forex traders are one of the most dishonest set of people. They rarely tell you the truth. Lies has made many people quit trading because many Forex ‘experts’ they come across tell them juicy stories that turns out to be soar experiences in real life trades.
When these bitter experiences creep in, these ‘experts’ seem to be speechless and offer cold help. This discourages people from trading. That is why I develop relationships first with my clients. As newbies come into real life trades with the initial mind and thought of what they were told but experience losses consistently, they tend to lose hope and quit.
On many occasions, I have had many clients ask me, is Forex real? My reply is, find out!!! Trading is a choice but I will definitely sit you down and explain everything to you and then allow you to make the choice. Just like I am doing now. Let nobody deceive you. Trading is hard work. It will take your time, energy and a good part of your emotions before you master the skill. However, we often forget to share this part of the story.
To succeed consistently, study! Books will expose you to so many things you need to know and these could serve as the building blocks of your trading experience. Do not jump into Forex trading because you were told that it is lucrative. Pay the price and gather relevant information. Make your own finding and be ready to accept the absolute outcome for every trading decision you will make.
6. People quit trading boom and crash because of the spikes and drops that occur in either markets.
I have heard traders say that spikes and drops tend to be the main challenge in trading boom and crash. Well, every Forex market has its own peculiar challenge(s). This (spikes and drops) has made many seek for strategies to trade the spikes and drops successfully. The truth is that, there is no 100% strategy. If you must be a success, look beyond the spikes and drops and focus on the general picture of the market (uptrend, downtrend or range). If you have a good glimpse of this, you have solved a whole lot of associated problems.
If this publication has been helpful to you, you can signup for my coaching and mentorship classes by contacting me through [email protected]