Join the ‘’5% Club’’ of Forex Winners –
It’s a well stated fact that only 5% of traders make consistent money from the Forex market. With the vast liquidity and high number of participants, it’s surprising to see only a small percentage of traders being consistently profitable. Contrary to what many unsuccessful traders may believe the‘5% club’ are really not doing anything different to them. They’re not using any unknown techniques, complex systems/strategies nor have some kind of special knowledge that allows them to consistently make money. They simply have the discipline, patience and right mindset needed to be a successful trader. Joining the 5% club is not as difficult as one may think. ‘Membership’ is unrestricted and open to anyone willing to do what it takes to become consistently profitable.
The 5% of forex winners do not all use the same system/strategy, or necessarily share the same market outlook; however two things they do all have in common are patience and discipline. Ask any successful forex trader and they’ll likely attribute a lot of their success to either being patient, disciplined or both. Being a great market analyst, either technical or fundamental, has little relevance unless the trader knows how to implement what the charts/news are telling them in a proper manner.
Similarly to the 5% of forex winners, the 95% who comprise of mainly unsuccessful traders share similar attributes. Unlike the 5% club, they lack the discipline and patience required to produce consistent positive results. It’s not uncommon to find excellent market analysts struggling to claw their way out of the 95% of unsuccessful traders.
Every trader in the 5% club is a master of discipline. These disciplined traders are not born overnight and for the majority, the practice of discipline can be a long painstaking road; however with time, effort and patience, the discipline these traders practice becomes second nature.
Successful traders have a well detailed forex trading plan which includes the rules they follow for their system/strategy, the amount they areprepared to risk per trade and the risk : reward ratio they wish to follow. Traders in the 5% club rarely ‘bend’ the rules for their plan and are disciplined enough to know that if a trade is not inline with the rules of their plan they simply won’t take it.
Forex winners never overtrade. A common mistake made by the 95% of unsuccessful traders is overtrading. A large proportion of unsuccessful traders feel they need to be trading 24/5 in order to turn a handsome profit. Disciplined traders in the 5% club are astute and never fall into the trap of overtrading. They understand trading is a ‘long game’ and are disciplined enough to wait for set ups which conform to their trading plans.
Patience –
Successful traders understand that a great part of their success can be directly attributed to their patient outlooks. The 5% club understand trading is not a race and never ‘jump the gun’, always waiting for the market to produce trading opportunities that conform to their trading plans.
Patient traders trade like fishermen, reacting to what the market does as opposed to predicting what the market is going to do. They trade what they see, not what they want to see or what they want to believe.
Successful forex traders have truly understood that trading is a ‘long game’ and never chase quick money or instant success. They have accepted that to be part of the 5% club of forex winners is no easy feat and success is measured over a substantial period of time years, (not days/weeks/months).
Joining the ‘5% club’ –
As previously mentioned ‘membership’ to the 5% club of forex winners is unrestricted and open to anyone willing to do what it takes to be a successful trader. Although not an easy task, successful trading can be achieved by any trader open to changing or fine tuning the way they approach the markets. Being an excellent market analyst or having a highly profitable strategy is not necessarily a ticket to success. It can be said that successful trading is more psychological than technical/analytical. One thing every trader in the 5% club has is common is they are all realists. They’re not dreaming of ‘one day quitting their jobs’ and making millions from trading. They are true to themselves and have genuinely accepted that being patient and disciplined puts the odds of success in their favor.