3 Things Beginning and Struggling Currency Traders Need to Address

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Hello traders and investors!

This is Nathan Tucci discussing some fundamental things that should be learned for beginning currency traders. Before I get into the meat of the article, I do have one major request that we’d really appreciate you taking a second to help us out with:

If you’re a beginning currency trader or maybe new to currency trading even though you’ve traded other things, would you leave a simple comment and let us know? Quite frankly, we have no idea what size the group is of new Forex traders and we’d really like to learn more about that.

We are even thinking about publishing a course for beginners to help them get started on the right foot so they can be successful, but again we don’t know if that would be valuable because we don’t really know what size group we’d be addressing with something like that.

So, if you’d leave a comment letting us know “Hey, I am new to this stuff” we’d be very grateful!

Moving on…

You know, a ton of people are searching for ways to make money every day (that probably isn’t surprising to you) and a lot of them are hearing about this “Forex” stuff.

Although Forex Trading can be a great way to make additional income, most of the people who stumble upon Forex never make a penny.

I believe there are 3 key factors that are causing this epidemic.

 

#1 The Forex Industry

The industry, itself, is not conducive to helping traders make money. It is littered with Get Rich Quick Scams, Self Proclaimed Gurus, False Methodology, Bad Software, Crappy Indicators, Greedy Brokers, Shady Websites, and the list goes on.

Ninety  percent of the information, tools and people you in the “Online Forex Industry” are leading people in the exact opposite direction they’re trying to go, so it’s no surprise that 90+ percent of them end up failing.

The problem is that anything (and I mean ANYTHING) that can be used to make money will attract some shady people.

If they can dangle the idea of “Make money online” in front of you, it’s an easy way to get people to buy in. Forex is not an easy way to make tons of money overnight, but that doesn’t stop shameless marketers from promising that over and over.

All in all, the industry makes it incredibly difficult for a beginning trader (or someone new to Forex) to make any real progress in achieving a profitable venture via currency trading.

Some would like to say that this is the only problem with the validity of Forex trading, that if it wasn’t for all the scammers out there that trading would be sensible and easy and tons of people would be getting wealthy doing it; however I strongly disagree.

Though I would concede that the overwhelming supply of scams and false information is probably the biggest problem with currency trading, it is not the only problem.

#2 The Process

One of the glaring problems I see in Forex Trading (specifically in the education aspect) is that there is no defined process for how to learn and grow and eventually do it well.

Instead, there are just bits of information, guides on good strategies, webinars on important topics, etc.

And trust me, we are guilty of aiding this process, or the lack of the process more accurately.

Not that any of those things are bad (topics, strategies, reports), but they don’t make up for a defined process to become better at a specific task–in this case, trading.

I will use my over-done golf example again because it applies here once more.

If you wanted to play golf and you learned bits of technique:

– How to hit a flop shot

– How to take spin off the ball or add spin to the ball

– How to get more distance

– How to stop slicing it off the tee

– What kind of clubs are right for you

– The best ball for your game

– How to use less hips and more shoulders

– Tips to keeping your head still

– Tools to help your balance

And I could go on forever here, but you get the idea.

ALL of those things are good and all of them even have a place WITHIN the process to becoming a good golfer, but just learning them in random fashion without the fundamental training and practice to get to a point where you can use them successfully, they will just confuse you and cause you to fail.

This is SO similar to the trading process that most people are going through. They are getting tools and learning techniques and hearing tips and they wonder why it isn’t helping them make money.

More often than not, it’s a situation where there is not a foundation in place to use these things successfully.

You are trying to hit a 300 yard fade around the trees on the right side of the fairway before you even learned the proper way to swing a golf club :)

Any golf guru would tell you that’s a bad place to start, yet for some reason we are content letting “Wanna Be Traders” start by attending webinars on advanced trading strategies.

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To me, this is a fundamental reason we are seeing such a high rate of failure for Currency (and other markets) traders:

There’s not an understandable process laid out for traders to walk through. But this leads me to my third point. The last thing fundamental issue that is plaguing new traders from making any ground in this game–the one that most people don’t want to talk about.

#3 You

Uh oh, this one could step on some toes and I apologize.. but that’s not my intent; and of course when I say “you” that doesn’t mean everyone reading this article, it only applies to the people who it applies to :P

See, one of the biggest issues we have with this epidemic of failing traders is that people come into it totally unfit to be successful.

We talked about all the scam artist and the “make millions gurus” but let’s be honest for one second:

It’s not just their fault. I mean, they couldn’t sell anything if people weren’t buying into that crap about getting rich with Forex overnight.

So a lot of the responsibility lies on the new trader who has a bad foundation before they even begin this trading journey.

If you googled “How to make the most money in the fastest way possible” and found Forex trading, you just started in the wrong place and are basically doomed to failure from the start.

I hate to say that, but we need a reality check in this industry; if we are going to fix point #1 on this list, people need to get their heads right so that the industry follows suit.

I mean, if people are getting into currency trading like it’s the lottery, why wouldn’t the industry conform to that image?

I hate to be so harsh about this, but the truth is that this aspect may be the biggest epidemic of all…

So many people are looking for the “Quick and Easy” version of building wealth and it just doesn’t exist.

When people come into Forex as a beginner with no plan or vision or discipline, it results in a MASSIVE majority of them failing, and when you look at it from that angle, it’s no surprise.

Our encouragement to you IF you represent that beginner trying to succeed is to address these 3 issues.

1. Don’t follow the industry blindly

2. Find a process that makes sense and commit to it

3. Get your head right: Reasonable Expectations.

That’s All.. That’s my advice if you are new (or maybe just still struggling without a foundation) to this field and want to be successful.

P.S. Don’t forget to post a comment below! Let us know if you are new to Forex trading or would be interested in a course devoted to “The Basics”

P.P.S. Follow me on Twitter

P.P.P.S. Thanks for reading my article

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NathanTucci

Nathan Tucci has been with Winner's Edge since 2011 as a writer and trader. He specializes in strategy development and enhancement and loves to share what he learns from testing, research and real world experience.
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  • Luyanda

    Hi Nathan, you are 100%. My main frustration is everyone claims to be expert so one gets really confused, and with all the confusion your hard earned money is out the window. There is nothing as frustrating as working hard the whole month, deposit money into a forex acc only to loose all that money in less than 72 hrs.
    Please, if you can help with a beginners course that will much appreciated.

  • http://www.winnersedgetrading.com caseystubbs

    Jamie your welcome, keep practicing and I am sure you will be ready someday.

  • http://www.winnersedgetrading.com caseystubbs

    Joe thanks for the feedback, based on what we heard we are going to be hosting some free training for beginners only. Click here to sign up for the free webinar http://webinarjam.net/webinar/go/907/9e8bf2b38c

  • http://www.winnersedgetrading.com caseystubbs

    Stan have you looked at our Double Trend Trap Strategy? https://winnersedge.leadpages.net/double-trend-trap/

  • Stan

    First I need to find a system that works and one that I believe in. If I had that then putting everything else with it wold make a lot more sense. But trying to trade and implement the other things like money management and discipline. All of it without a working system makes know sence. So yes I think a proven systen is the first thing needed, then comes the rest

  • Nishebita Das

    Hi Nathan, A very good article to learn how to discipline one self. Thank you.

  • Morgan

    Nice article Nathan… let me know when you post the video on how to stop slicing it off the tee :)

  • artur2345

    Well written article. I started my journey 11 months ago and am glad that I’m leery of much of what I read/hear. By nature I’d rather read than video unlike most and this may be the reason so much snake oil is being sold!!!!!!!!!!!!!!! You sound sincere and your efforts are worthwhile. Thanks.

  • Simon

    Hi, I was with Aussie Bob and dropped a bundle, after that experience, I consider my self a new beginner definitely in need of retraining. Interested to hear what you have I mind.

  • David

    Thanks Nathan. There’s a group of us that definitely need an intervention that would allow us to learn properly. I’ve been burnt too many times for lack of proper training and discipline in trading and would welcome a well packaged training that can change that situation..

  • Roger

    Thanks Nathan, this article is very good and helps set the records straight. I have been studying in this regard, but as you said so very aptly there is no real complete basic course available that has at its core teachings, that you can use in the future without the necessity to re-learn what is now deeply imbedded.
    Roger

  • ro

    Currency-trading caused me lots of deceptions. Hope this will not be the next one, but if so, then certainly the last.

  • PhilJ2011

    Ive been live for a year and breaking even. In all that time I have never gone much over my initial capital though I have dropped considerably below it. Curiously its at that point that my trading improves and my balance comes back up again, fast. Conclusion? I wish I had a definitive answer to that. Am I getting complacent when the balance comes back up? Am I unconsciously using a technique when in the red and not when in profit?…..rather like gripping the steering wheel too tightly when driving in certain conditions?

    Do I still tend to let losing trades run to the stop when its clear that is exactly where its going? Yes and I kick myself every time.

    Do I tend to take profit before reaching the target and go on to watch, what could have been, considerably more profit? Yes and I kick myself again.

    Do I walk away and take a break after a series of losing trades? No I tend to get frustrated and continue to lose. Its a dumb thing to do and very expensive.

    I look at the performance of (say) USD/JPY over the past year and think: ‘How did I miss that?’ Especially considering the whole world and his dog were pointing that way a year ago.

    Am I a beginner? Of course I am: I’m learning but not applying and that is keeping me in kindergarten.

  • Arun Sinha

    I am new to Forex. Tried some trading and lost!
    Arun

  • Andy

    Hi.. I’m relatively new in this industry. I would love to get some basic knowledge.

  • Jerry

    that makes alot of sense to me Nathan – thanks for the article.

  • Anders

    I think the biggest problem is in “Find a process that makes sense and commit to it”. As a beginner I do not know if it “makes sense” and if I can rely on the person who sold me on that process.

  • TAL

    I have never traded Forex but it is of interest to me to learn. I just don’t know where to begin. I have been a stock option trader (retail) for a few years, but I feel I am forever learning in that area. I would be a very newbie at Forex starting at the beginning.

  • linus

    Hi Nathan , I hve attended forex course but I am still struggling . Till now I am still on demo using the crossover stratedy but the results are inconsistent. Hope can get free online strategies and tips to improve my trading.

  • l

    I am totally new to forex and i agree with your comments on lack of good education

  • Di Reid

    Hi, Having a building blocks approach would be fantastic. Have been struggling for 8 months still on a demo a/c and cannot get a consequential WHOLE concept.

  • Floyd

    I know nothing about trading. I know what currency is but have no idea what a pip is or how much it is worth

  • Frankie

    I am new. Is interested to learn the basic first. Let me know when you have decided to start your basic course.

  • Gerald

    I am a newbie at this stuff but would love to learn how to trade this market successfully

  • Raji

    Making money is tough. There are many unemployed people looking for a way to make money to feed their families. If a training course is too expensive, how are they to manage. Yes, yes I know, if you want it badly enough, you will get the money. Well, I can say a thing or two about that, however I will reserve my comment for later. Hope that answers your question.

  • Kapo

    Nathan,
    I am all for joining this Edge Trading but we were with Aussie Rob and lost a lot of money
    so you are going to have to be really convincing to get me back to trading. I would definately classify myself as a beginner,

  • Bob

    I thought that your comment about needing a proper process was very appropriate. Not many good courses out there that follow that idea. Just get bits and pieces or good things but not in a proper framework or process.

  • david

    After reviewing a hundred courses over four years I’ve found my greatest success in developing my own trading strategies and indicators. Most traders lack the discipline to follow any strategy and more importantly manage their risk reward properly. 98% of this industry is just selling “fluff” leading to broken hearts and bank accounts. Most successful traders I know “failed” their way forward until they developed their own trading system compatible with their own trading style. Just because one trader is successful with a system doesn’t mean it will be successful for you.

  • Jamie

    Thanks for the guidance in overcoming the pitfalls especially myself. I have taken a couple courses, however never traded live

  • Chris

    Guys, I was one of the poor suckers who paid hard earned money to pay for my subscription to your forex managed fund. This was not a demo account, but your expert managing my equity in the account purportedly to generate profits from forex trading. 2 months latter you had demonstrated the same ability that I had to lose money in the forex market so I withdrew my funds, but received no refund of my subscription. I cannot believe you can carry on making the statements above and honestly believe what you are saying!

  • Joe

    I have demo traded for several months with some success but not enough to go “live” with real money. I have studied technical analysis and I am comfortable with my knowledge level but I need help recognizing set ups when they present themselves. I would love a course along the lines you discussed

  • NathanTucci

    HI there, thanks for the comment, I appreciate it!

  • piphunter

    Hi Nathan, I’m fairly new to Forex about 1 year of struggling but I totally agree with all points you’ve mentioned