What do most forex traders do when they think of taking a trading loss?

They panic. They freak out. They hide.

They want to over analyze the loss. They want to blame something or someone, including themselves.

Isn’t it time for you to grow up and get serious about trading?

These words “grow up and get serious” are really important for your long term success as a trader.

When you can look in the mirror and say :

• Once and for all, I am done playing games!
• I am done buying all the crap being sold to traders!
• I am not going to stand by and watch other people make money trading, while I hesitate to take trades because of my own fears!

Have you honestly made the decision to get serious about your forex trading?

It’s a simple Yes? or No?

Your trading actions will clearly demonstrate your answer…why?

Behavior never lies

Simply stated, your behavior tells the world if you are serious about forex trading or if you are just screwing around with it.

Too many forex traders take a casual approach to their trading and never even think for a moment that they are the problem.  This is delusional!

Here is what I know

You will become profitable as a forex trader the moment you decide to, and not one second sooner.

Until you decide to become profitable as a trader by developing a plan and executing your plan consistently, you will remain in the same situation you are currently in as a losing trader.

You will suffer the undesirable consequences of failure unless you choose excellence and raise your standards as a forex trader right now in this moment.

Behavior never lies

• When you set realistic, but challenging standards for yourself as a forex trader and honor them, you demonstrate you are serious.
• When you are on time and fully prepared for the New York Trade Planning Sessions, that is a demonstration of a professional.
• When you look for solutions rather than focusing on problems and blame, you demonstrate you are serious about trading.
• When you take initiative and you are proactive in your trading without being told what to do, you demonstrate professionalism.
• When you accept reality as it is, not as it was in the past or how you would like it to be shows your serious about trading.

Let’s face it

Until you grow up and get serious about your forex trading, you will waste a lot of money, time and energy.

 

 

 

 

 

This past week we all had or should have had a shocking wake up call when the Swiss National Bank (SNB) made a financial decision that had a black swan effect in the global markets.

The SNB’s move not only disrupted traders, hedge funds, Swiss exporters and banks, but it also hit several forex brokers very hard.

It Impacts Us All

If you truly understand the impact of this on the brokers and your trading colleagues, then you would not be happy or proclaiming things like one ignorant and vindictive trainer did in a recent email:

“I have seen news of many smaller dealers going under,and in my opinion, rightfully so!”

This is bad news for all traders when a brokerage firm, like an FXCM who was one of the 1st brokerge firms in the US to offer forex trading, is hit hard and faced with a cash crisis. When PFG went under due to owner fraud, it affected us all…we either lost all of our money in our accounts or we knew someone who did.

It impacts us all.  If we do the Happy Dance at the expense of someone else’s misfortune it is disrespectful to all of us.

Instead, why not take the high road?

What Important Lessons Can We Learn?

1.  Having a plan to manage risk is only as effective as your ability to act on the plan in the face of adversity

Take FXCM for instance.  They had a risk management plan in place as required by the NFA, but clearly there was some kind of internal breakdown during this crisis.  I expect that in the days/weeks/months ahead we will come to understand the real story behind what happened at FXCM.

Think about your own ability to do what is necessary in a crisis.

2.  Luck plays a big part in any winning investment or trading position.

If you were one of the traders who benefited from this crisis, do not personalize this as something you were brilliant about and go around pounding your chest like this egocentric trainer did:

“I am most proud to report that in the face of catastrophic bank news my dealer cycles held true! “

There was no way any one person, hedge fund, bank or methodology could have seen this coming or would have been able to predict the magnitude of the SNB’s announcement.

It was a black swan event…pure and simple.

If you lost money because of the SNB announcement or you made a windfall and your broker is no longer in business, I want to say I am truly sorry.