5 things holding you back as a trader

Top 5 things holding you back as a trader

I’ve been trading for almost 10 years now. Over the years, I’ve spoken to many traders who are on the verge of making it. Almost there.

 

Technicals or fundamentals knowledge, check.

Willingness to be consistently profitable, double check.

 

Still.

 

These traders are about 80% in their journey to become a consistently profitable trader. Even here, the Pareto principle is doing its magic.

 

They’re like a semi-pro football player almost making it to the Champion’s League. Or the aspiring actor trying to get that big breakthrough role. The trader is missing some essential, but not always obvious elements, and here’s the thing: without proper guidance, some of these traders will be stuck in this state forever. If nothing changes, the next step is gradually losing money and/or giving up.
Which is a shame. These are the traders that have put in considerable effort already, but are somehow missing that something to pull them over the edge of consistency. Do you recognise yourself in this profile? Keep reading. See, once you are at this level, it’s not about knowing how to draw a trend line. It’s not about chart patterns and price action. Most traders in this state of limbo usually even have some trading system.

 

But something’s holding them back.

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Forex trading plan

The ultimate forex trading plan guide

Building your trading plan will be by far the most important part of your forex trading success. Too many forex traders are currently entering trades without a clear vision or goal in mind. They have a fear of missing out. They have a “feeling” that their trade is going to be the winning one, raking in loads of pips! When it turns out that the charts didn’t go their way, the first reaction is to quickly try again and forget the losing trade. Keep in mind that the fading affect bias is a powerful cognitive bias! This approach eventually leads to losses, pushing profitability even further away.

These traders lack a trading plan, a well-defined description of the “what” and “how” of their trading business (notice how I said business. You should treat it as such if you want to take forex trading seriously!). In this post, I will guide you through the steps needed to make such a trading plan, and give you a template of how a trading plan could look like.

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