What Is More Important In Forex Than Making Money?

I haven’t been able to make any progress monetarily in about a
month.  I’m up about 4% this month but breaking my account balance
all-time high has been a struggle.  I’m pretty much stuck where I was
around this time last month.  I’m not all that concerned and shouldn’t
be considering I was preaching patience a couple of days ago.  It’s
just that everytime I open my trading platform, the account balance is
just staring me in the face. 

It’s more important that I
progress as a risk-aversed trader.  For newer traders, it’s very
important for you to understand that learning methods to control your
risk should be a priority.  Making gains monetarily is obviously
important but making gains and strides elsewhere are more important. 
When I first started trading mostly with demo accounts, I had some
unbelievably profitable trades but my strategies were random and my
risk and leverage too high.  A lot of this is just pure luck and not
going to take you to the next level.  Your account balance shouldn’t be
used as a guage for success.  Some questions to ask yourself to guage
your success may be:

Have you managed to minimize your risk and maximize your reward?

Have you maintained consistency?

Have you been able to control your emotions?

Have you developed a complete trading system that you’ve been able to follow without deviation?

If you haven’t been profitable, have you at least been able to turn those gushing drawdowns into slow bleeders?

If you’re new to trading forex or have been trading for a couple of years, the #1 goal is to stay in the game as long as you can.  I’ve talked to many traders over the years and many of them have been in and outers.  They’ll jump in head first, blow up multiple accounts, and jump out never to be heard from again.  There are other traders I’ve known who couldn’t consistently turn a profit and instead turned into mentors or forex marketers.  Heed caution…  There are also others who couldn’t stand the non-regulation of forex and went back to trading futures or stocks.  There are a couple traders still around since I started but I can count them on one hand.  It takes years to become a trader and I can’t even say that for certain.  I’m still not there but I’m still around and giving myself at least 5 years.  If it doesn’t work out for me or you after 5 years, just think of the countless people who have gone to college and have never entered into the field of their degree.

Comments

4 Responses to “What Is More Important In Forex Than Making Money?”

  1. Caprica on April 10th, 2008 1:43 am

    Hi Rich

    You have been at this forex thing for a while now and still are not achieving the results you had originally hoped you would achieve. What do you think is holding you back?

  2. Rich on April 13th, 2008 12:12 am

    First, 2.5 to 3 years ago, the results I was hoping to achieve were unrealistic. Then I went through a tough period where I was doubting everything because I was losing a lot. During this period, I couldn’t even grab a profitable month so I wasn’t hoping to achieve anything. Over the last 6 months, I think the results I’ve achieved have actually been right in line and I’m pretty satisfied right now. Holding me back? My real career.

  3. Afco on February 22nd, 2009 10:24 pm

    Hi Rich..

    Good topic review and very interesting post..

    ;)

  4. adma dababneh on December 1st, 2010 8:16 pm

    I have lost a lot of money in forex trading but when i started using forex scalping i started to see some profit!!! You have to have the knowledge first to do this and you have to practice for a long time before you start trading.

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