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How many of us will succeed in Forex?

Many of us have probably heard the statement that 95% of beginners lose in Forex and remaining 5% become successful.

A common trading journey in Forex starts with demo account and develops into live account with further positive or negative outcome.

We have made own simple research that was aimed to find out how long on average traders plan to demo trade Forex before going live.


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An incredibly useful story!
That's another best example of how it really "works" once you go live in Forex:
at some point a greed kicks in,
a winner turns into a loser,
then there is a hope it'll come around,
then denial of the loss and delaying an exit,
and finally the exit with an even larger loss.

I learned those steps on my own skin when I was a beginner. The story is sad, but the lesson is priceless. Thank you so much for your feedback!

I wish you all the best in your learning and trading!

Regards,
Edward

Hi Edward,

Thanks for posting my previous comment. I've got an update. I've gone bankrupt (well almost). Even though I started trading semi-profitably using two strategies from your website I got a margin call from my broker. I hoped a position I had taken 2 weeks before would finally go my way but it didn't. It significantly went the opposite way. So here's a lesson - do not hope while trading, put a stop loss and don't hope. Make decisions based on what you see and not what you'd like to see. I know it's easier said than done as I'm still having a difficulty with this.
Now I'm left with 5% of my initial fund. I need a break and sound learning so I'm switching back to my demo a/c.
I'm pretty sure many of you guys have been through it before - you lost all and then you managed to get back to the surface. I'd love to hear from you how you did it. What did you find most difficult? What do you recommend I do now? I haven't given up yet but I'm not gonna enter a live trade before I manage to fully recover the equivalent of my initial fund using a demo a/c. Any comments, advice, suggestions or secret strategies are more than welcome.

Cheers,
Gryb

Hi Gryb,

One of the secrets of mine is: "Stop trading, make a pause once encountered a streak of losses."
Through time I found one of my weak spots and managed to gain control over them.
My short story:
when losing a trade after a trade, I always looked to get back into the market in order to waste no time and recover the loss.
I was wrong. Not only I kept on losing more than winning (even thought I followed the strategy thoroughly!), I gradually stopped bothering about losing the money.
The fact that my strategy was no longer capable of producing winners, should have warned me that there were unfavorable conditions on the market: sudden changes of price direction, choppy moves, weak support/resistance levels etc. In times like these one should simply STOP trading. And wait for a day or two or even a week or two, when we talk about 4 hour or daily charts.
The fact that I stopped caring about the money being lost kept me in the game, where my account continued to suffer losses. It was my fault that I didn't switched the monitor off before I realised I no longer interested in being a serious investor... When you are no longer a serious investor, you're a gambler...

I've learned this facts about myself and put all efforts in to eliminate this behavior in the future. My trading and emotions are in control since then.

Hope this gives you a prospective of how to approach and evaluate yourself.

Regards,
Edward

Hi Edward,

Thanks for the good wishes.

Now I am trying to learn some strategies, try them out on demo a/c and see which suits my profile. I am trying to learn the Floor Trader system now and see if it works for me..

Also, I would like to emphasize that for new traders, please start using trailing stop. I didn't knew about this before, but I guess this somewhat helps new people in locking there profits.

Thanks again... Hoping to break the ice one day..

I started trading demo about 2 yrs ago trying to figure out this forex. The big problem While using the demo I did not treat it like it was my money 100% of the time. I would feel great when I made profit in demo, but get frustrated when I had losses. But then I would say hey its not my real money. So I would take positions carelessly just going off of gut feelings. Sad to say I was lazy and I was really not taking the time to study the market as far as the fundamental and technical analysis. I did not learn to properly use indicators, charts and time frames in making successful entry and exits. I did not have plan using stop losses. So what happened I got some lucky breaks in the demo and figure I would rely on my gut feeling.

Man did I take a hit I started with a $1000.00 lost $400 and quickly withdrew the rest from my live account and never touched the market again, until last year around August or so 2008 I was talking to a friend, who was learning to trade Forex. This sparked my interest again and I immediately started trading on one of my old demo account. This time I studied hard I learned the pattern of the candle sticks, learned the importance of which time frames works for my trading system. learned to use trend lines to spot trends learned to used indicators for trending and how to understand the sell and buy signals in them I learned what a support and resistance means. I learned to watch when the market is flat or consolidating etc. With this said I opened a live account with $280.00 and suffered a loss down to $69. I never gave up I kept studying and learned to keep my emotion in check. Its still not perfect but I added $1000.00 to the $69. This time I tweaked my plan use more logic and technical analysis along with fundamental analysis and not only recovered my lost but have profits of almost $400. I learned that you have to be patient in forex trading. sometimes it takes awhile to get a good signal of where the market in trending. I Yes don't be (GREEDY) Greed can cause you to over trade which causes the eventual losses. I am still learning and try to learn from my mistakes and turn the mistakes into successes, I still suffer losses sometimes, but I have a rule that out of ten trade try to be profitable 7 or 8 out of 10 trades which means you are maximizing the profits and minimizing your losses.

Patience is a virtue. take the time to always learn, I am still learning as we speak. I hope to be able to keep this a success take control of my destiny with Gods Help and some good knowledge.

Greg

Thank you, Greg for a wonderfully written comment! I'm sure some traders will find your story very similar to theirs. Thank you for your good advice on trading attitude and discipline!

All the best in your trading career!

Regards,
Edward

Hello Edward,
You really have a wonderful site! I came across this site searching for answers. I got interested in forex way back November 2008, after being fed up with tremendous lost in the stock market. I tried demo account from OANDA, and got the high after earning 20% from demo account. My initial demo deposit was $10,000 giving me around $2,000 profit within a month.

Immediately I thought, why should I waste my time in demo when I can earn that 20%? So I quickly opened a live account putting in $10,000. I had some technical and fundamental knowledge, with my background in economics and stock market. So I was in a hurry, thinking that I was losing the best opportunities if I didn't go live.

But boy, trading in a live forex market is a different kind of animal. Whenever I opened a trade, my heart would thump like a rabbit. I gained a little on the first few days, but after two weeks I lost $2,400. I was using a single technique without realizing when the market is trending or ranging. I did not consider also the time factor ie, when the market opens in different time zones.

I got mad that I lost $2,400 and I wanted revenge!. That foolish emotion that could kill anybody. I knew from fundamental point of view that the dollar was going down against the euro in December. But when I look at the 5 minute chart I saw that euro was "reversing" down. I did not think that it was a short term retracement. So I shorted the Euro. Because I was mad, I put the whole farm into bet and just left my account open hoping that it would reverse. And I left my account for holiday mode, as Christmas was approaching, still hoping that the trend will reverse, hence not putting any stop loss.

Yes, the trend reversed but only after I got a margin call, reducing my balance to less than $1,000. Now I am back to school of pips. I consider myself a student that should learn the basics of technical analysis. Only if I listen to you guys who always advocate the use of stop loss and risk management, etc. I would not suffer that stupid mistake.

Anyway, thanks for this website, I am learning a lot and willing to learn as my repentance.

Thank you very much for taking time to share with everyone this very important aspect of live versus demo trading!
I'm so glad we now hear more and more from traders about their trading experience (in both good and not so good times). This information is invaluable to every Forex newcomer!
Thank you!

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