How many times, you have heard this oft repeated statistic that more than 90% of new traders fail and give up trading in just a few months. Only a few lucky traders survive in the long run and make consistent winning trades.
Yet, still millions of ordinary people around the globe wake up everyday in the morning, turn on their computers and try to make a living trading the financial markets electronically. Have you ever thought why?
The same statistic of failure exists in other businesses like restaurant business. New restaurants open on daily basis; some succeed, and most fail.
Still the possibility of making it big never stops people from starting new business ventures. The same also applies to forex trading.
Kathy Lien is a professional forex trader who has written many books on forex trading. In her book, Millionaire Traders, she tells the story of 12 ordinary people who made it big.
These 12 stories are remarkable and inspiring. The rag to riches story of Hoosain Harneker, the 10 pips a day trader is especially worth mentioning. He lost almost all his money in a failed business partnership.
One of his friends advised him to trade forex. He emailed him the forex system that he used to trade. It was based on simple moving averages. But he did not have even a few hundred dollars to open an account with a forex broker.
Hoosain took six months to save $1000 to open an account so that he could trade forex. But during those six months, he practiced and practiced the forex system on the demo account.
His wife was not sure about his success. He promised his wife that he would never trade forex again if he blew up the $1000. All the 12 people in the Millionaire Traders had blown their accounts in the first few months of trading except Hoosain.
Hoosains advice to new forex traders: Begin by practicing on your demo account and double your amount three times in a row. Dont trade live before that. Paper trading gives you the confidence to face the daily turmoil of the forex markets.
Now many new traders jump straight into live trading without practicing on their demo accounts. They make consecutive losses. Consider forex trading to be difficult and give up.
Forex trading needs a lot of discipline. You can learn from the success stories of these 12 ordinary but remarkable people who had the discipline and determination to make it big.
