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Why Do Even The Best Forex Trading Systems So Frequently Fail?

By: Christopher Temple So why do a large number of Forex Traders eventually fail? I was a failed trader, and here is why...

When I started forex trading (many years ago now) I really believed that I would soon be dragging in the cash. Forex was, after all, a giant online marketplace where someone like me could hardly fail to make good easy money. I had done my research, and I understood that over 90% of forex traders quickly fail, but I never believed for a single second that this would happen to me! If I took the time to study the best forex trading strategies and assiduously avoided the pitfalls, I'd soon be a top forex trader!

To start off I had invested a lot of money in the very best forex training course I could find, it was a complete set of 13 dvd's, and cost me in excess of $4500. I recall that there were over 13 hours of best-quality forex tuition, several useful software applications and some free forex signal software, and everything was already set up and ready to go with my passwords etc I also received an established spread-betting account. Now that was very handy indeed, I could now take advantage of tax free trading!

I also received access to the author's personal web site where I could review his recent trades. Every day I would watch his trades and listen to his suggestions, and hear how many pips he had made. Most sessions he made around 22 - 35 pips - most often in the GBP/Dollar market. If he can do it, I can do it! I thought. This would be very easy!

The forex course covered every facet of trading, including preparation to trade, keeping records, no-money paper-trading, as well as the psychology of the forex trader. I carefully watched the entire dvd set which took me about two days. After that, I watched some of the dvds again, mostly those covering actual forex trades and particular forex techniques. I was ready to begin.

I opened and funded my spread-betting account (another $4,000 but hey, what the hell.). Oh, and I began to dream about the latest Mercedes and Ferrari cars - not long now.

That was over 3 years ago. Do I now have that Mercedes or the Ferrari? Sadly no! Have I made a fortune? Well not yet! In fact I've lost some money - well lots of money actually! I haven't lost confidence in the forex market as a vehicle to make money online, I've met too many forex traders who make good money. I know it's possible, I've seen it done many times. I wasn't doing it though - so I blamed my system!

I put my hand deep into my pocket and spent more money, I purchased the top web-based systems - but only after I'd painstakingly checked out their testimonials from other users and satisfied myself that other traders were really making good money using them. I bought forex trading books, I bought forex training books, I even bought books listing and comparing forex systems. I then bought another forex training course. I studied several day-trading systems comparing them to longer-term systems. I was absolutely determined to succeed in making money by forex trading.

Did I make any money yet? No! But I began to suspect where my problem lay and why I'd failed so completely. It really hate to admit it, but I felt I might be the problem! Little old me.

I had come to realize that my own individual style and my own methodology, they were letting me down. Even when I was using a proven winning trading system, I would still lose money. And for a long time, I didn't even recognize it. I did even more research.

I now learned that it is possible to obtain a winning forex-trading system for not much money at all, and that even one of the top courses can cost surprisingly little. There are a whole range of inexpensive forex resources and training available online. It is nearly possible to totally set up to make some serious money in the online forex markets.

What does that mean in this context? What was I missing? What's the difference between a winning and a losing forex trader? How else could I become the total trader? It didn't take very long to get that question worked out!

Once I took the blinkers off I realized that it had to be me. I had to admit to myself that I am not nearly as clever as I thought - I soon identified a whole boat-load of personal deficiencies that prevented my success. Words like resolution, concentration, dedication, honesty, self-discipline, all came into my mind. I had not used sufficient of any of them!

I had got my hands on yet another book - well booklet actually. It was free (and worth every penny). It came as a bonus when I bought some trading software through my favorite forex trading software web site. This little booklet didn't attempt to tell me anything about winning forex trading systems, it dealt entirely with the secret ingredient that is missing from the mental toolbox of many forex traders, and is probably the reason why the majority of them lose money. (Come to think of it, it's missing from the mental toolbox of traders in most other financial markets too).

So what did I learn? I learned that the problem is in my head! Like most forex traders I am incapable of sticking to any system I have learned. That's why I and most other forex traders fail. Luckily for me, my little booklet not only pointed up my problems, it also pointed out some quick (and blindingly obvious) solutions. I'm trading profitably now.

As a thank-you to the site owners, I've taken their little booklet and re-written and expanded it, and handed it back to them. They are still giving it away free to purchasers of anything from their site. The book is called The Missing Link, and as I said, it's still free and still worth every penny!