Forex Profits and Empowering Answers
By: Aaron L. Stokes | Posted: 28th August 2007
Welcome to the exciting world of currency trading, a place where questions are often abundant and answers may sometimes seem scarce. In this article we're going to talk about the nature of questions, how questions relate to your financial future and what we can do to capitalize on these momentary bouts of confusion. To start off I'll reference one of the most common questions I'm asked: "What chances do I have at succeeding investing in Forex?"
If I answered this question by stating: "On average 80% of today's Forex traders will succeed" you might be justified in calling me crazy, however some 15 years ago one might be inclined to answer with such bold figures. Certainly it would not be uncommon for at least 50 to 60% of the chosen few Forex traders to achieve success in those days. The currency market was fresh and opportunities were wide open. Daily price movements were somewhat more predictable and the competition was not nearly as aggressive as it is today.
As time moved on from the late 80s, early to mid 90s and on up to our Present day the success rate dropped drastically as the Forex market progressively became saturated with day traders; this in turn made for a more unpredictable trading environment. The "white noise" we experience intra-day is in part the efforts of the masses, each trader grabbing at what they can to secure their daily profits. It's unfortunate to take note that less than 10% of the investors currently trading the Forex market come out on top.
Let's take a closer look at the real ratio of winners to losers. You see, it's important to understand that this isn't a luck of the draw situation. When you look at figures like 1-in-10 there is certainly much more than meets the eye beneath these numbers. Let's explore this thought further.
If you take 10 traders who have each asked the question "What are my chances at succeeding in Forex" and place them in a trading room together for any length of time, you surprisingly will not end up with 1 winner and 9 losers. The same holds true if you conducted this experiment with 100 traders, or even 1,000. So the odds are 1-in-10, you might say that this doesn't make sense? That is a very good question as within the answer lies one of the keys to your trading success regardless of which system, method or school of thought you subscribe to.
You see, the 5 to 10% percent who are succeeding consistently are not asking self-defeating questions like: "Why do I keep losing trades, am I any good at all?" but unfortunately the vast majority of those who are not making steady growth have no option but confusion as they wonder why they aren't on the winning end of things; constantly asking: "Why do I keep losing in Forex?" and inevitably receiving rather discouraging and uninformative answers. The answers may be "Because you're not good enough" or "You're not making enough pips per month", these answers do not help in the least as far as taking a hold of your financial destiny as a Forex trader. If you don't want to be left in the dark without a lamp then it's time to take control of your mind and give yourself the psychological edge you need and deserve.
Transitioning into the winning crowd involves adjusting the questions you ask from self-defeating questions to the sort of questions that will inspire you to find solutions, methods or systems that utilize your strengths. Try not to lose your way when losses come around, it's important to remain focused in times like those more then ever by replacing the negative thoughts with a new empowering question. For example try not to ask: "Why do I keep losing these trades", rather try asking: "What can I do to start winning". They may sound like similar questions however the answers you receive will always be drastically different, and without a doubt these questions and answers will play a lead role in defining the destiny of your financial future as an investor. An empowering psychology is at the heart of every great Forex trader.
The category we find ourself in more often then not is self inflicted simply due to the fact that we are in the habit of asking the wrong sort of questions. We're all capable of thinking like a champion and this skill will undoubtedly lead you towards greatness of both mind and life. Building success starts in the mind and will go a long way in shaping the outcome of your life as a trader.
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An expert in the field of managed Forex accounts, Aaron Stokes was ranked in the top 10 as International Forex money manager by Google.com
Find out more about opening a managed Forex account
Website: http://www.forex-cipher.com
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Tags: present day, confusion, length of time, profits, closer look, investors, success rate, losers, financial future, bouts, forex traders, currency market, forex market, currency trading, 80s, day traders, mid 90s, white noise, luck of the draw