No. 1 Reason Nigerians fail in the FOREX market
NIGERIANS APPROACH FOREX LIKE A GAME AND NOT AN INVESTMENT
Forex trading is an investment and not a game. Forex is not bet, neither is forex a ponzi scheme. A lot of the traders in Nigeria approach trading the same way they approach Bet Naija. They jump into the market because their instinct says its going up or its going down.
This is one of the mistakes I made earlier in my trading career. I lost fortune in the forex market in 2006 because at that time forex was a game to me, and not an investment. In 2006 I funded my account with $1000 and I entered a EURJPY trade. I actually funded my account with $1000 because I made about $80 the previous day on a $50 account. The more critical part of the incidence was that I borrowed the $1000 to double it the next day and pay back the $1000. So I did the same thing I did the previous day and entered a sell on eurjpy. I only entered the trade because Bollinger band SMA told me to. I came back 1 hour later hoping to see $1500 or more in my account, I didn’t know I entered the market during news hours, and I took a position opposite the direction of the news. I said well, very soon it will reverse. I watched and waited until I received margin call.
This obviously happened because I was gaming instead of trading. There are basically 3 things you do to move from GAMING to INVESTING.
1. You must target your trades like a Sniper
This means that you have to be very clear of the direction, and the actual destination of your trades. These two factors are very important. Direction tells you whether to look for buy or sell signals, while destination helps you know where the market is expected to get to in that direction. This also helps you to know where to set your profit target. A sniper waits on his target until he achieves accuracy. You need to do the same in forex. Be clear, be certain, and know what you are doing exactly. You can never be 100% sure in forex, but how about 80%.
2. You must analyze like a medical doctor.
Imagine a patient walk into a hospital and the doctor just looked at her and gave treatment without running her through some vital tests to determine what needs to be done. Funny as it sounds, that is what most traders do. A doctor looks at a patient, listen to the patients complain to get some guesses, and then runs some tests to confirm his guesses before treatment. The question you need to ask yourself is this, as a trader, do you have laid down test that confirm your guesses? When the market looks like its going towards a particular direction, do you have the tests you run it through to confirm your guesses?
3. You must think like a fighter pilot.
Years ago I read an article in a magazine that has given me a “guiding concept” for the rest of my life. It was written by a fighter pilot who was explaining the process by which he had been trained. I was fascinated as I read the story. The author explained how the majority of his training was focused on what could go wrong. Although much attention was also given to learning how to do things right, that was not the main focus. He had to constantly be aware of the unlimited number of variables that could go wrong as he flew his plane. He had to consider what to do in case there was a fire on board, or in case of an emergency that would force him to eject from his seat. He had to always be aware that he was flying with high-powered missiles on board that could potentially explode at any moment. In addition to that, there was also the challenge of a possible enemy attack while he was in flight. He went into great detail as to all the possible things that could go wrong. Then, at the end of the article, he concluded by saying that he was grateful that he had been trained in that manner because, although he never had to use any of those tips, he was prepared for any situation that arose. He always felt safe because he knew his options if things went wrong.
As a trader, you need to take your time to understand what to do when something is wrong with your trade. You need to know when to wait and when to act. You need to know when to cut a losing trade and when to allow it run.
These are some of the factors that must be in place for you to have a successful trading career.
Tomorrow, we are going to look at the 2nd Reason why Nigerians fail in the forex market. Watch out for it by 10:00 am
SAGA Forex
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Daily Forex Analysis
Daily Trade setups
Dily trading signals
Forex Trainings
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Forex trading is an investment and not a game. Forex is not bet, neither is forex a ponzi scheme. A lot of the traders in Nigeria approach trading the same way they approach Bet Naija. They jump into the market because their instinct says its going up or its going down.
This is one of the mistakes I made earlier in my trading career. I lost fortune in the forex market in 2006 because at that time forex was a game to me, and not an investment. In 2006 I funded my account with $1000 and I entered a EURJPY trade. I actually funded my account with $1000 because I made about $80 the previous day on a $50 account. The more critical part of the incidence was that I borrowed the $1000 to double it the next day and pay back the $1000. So I did the same thing I did the previous day and entered a sell on eurjpy. I only entered the trade because Bollinger band SMA told me to. I came back 1 hour later hoping to see $1500 or more in my account, I didn’t know I entered the market during news hours, and I took a position opposite the direction of the news. I said well, very soon it will reverse. I watched and waited until I received margin call.
This obviously happened because I was gaming instead of trading. There are basically 3 things you do to move from GAMING to INVESTING.
1. You must target your trades like a Sniper
2. You must analyze like a medical doctor.
Imagine a patient walk into a hospital and the doctor just looked at her and gave treatment without running her through some vital tests to determine what needs to be done. Funny as it sounds, that is what most traders do. A doctor looks at a patient, listen to the patients complain to get some guesses, and then runs some tests to confirm his guesses before treatment. The question you need to ask yourself is this, as a trader, do you have laid down test that confirm your guesses? When the market looks like its going towards a particular direction, do you have the tests you run it through to confirm your guesses?
3. You must think like a fighter pilot.
Years ago I read an article in a magazine that has given me a “guiding concept” for the rest of my life. It was written by a fighter pilot who was explaining the process by which he had been trained. I was fascinated as I read the story. The author explained how the majority of his training was focused on what could go wrong. Although much attention was also given to learning how to do things right, that was not the main focus. He had to constantly be aware of the unlimited number of variables that could go wrong as he flew his plane. He had to consider what to do in case there was a fire on board, or in case of an emergency that would force him to eject from his seat. He had to always be aware that he was flying with high-powered missiles on board that could potentially explode at any moment. In addition to that, there was also the challenge of a possible enemy attack while he was in flight. He went into great detail as to all the possible things that could go wrong. Then, at the end of the article, he concluded by saying that he was grateful that he had been trained in that manner because, although he never had to use any of those tips, he was prepared for any situation that arose. He always felt safe because he knew his options if things went wrong.
As a trader, you need to take your time to understand what to do when something is wrong with your trade. You need to know when to wait and when to act. You need to know when to cut a losing trade and when to allow it run.
These are some of the factors that must be in place for you to have a successful trading career.
Tomorrow, we are going to look at the 2nd Reason why Nigerians fail in the forex market. Watch out for it by 10:00 am
SAGA Forex
follow us on telegram for
Daily Forex Analysis
Daily Trade setups
Dily trading signals
Forex Trainings
just click on t.me/sagaforex to join
Nice tips...
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