It’s not a pleasant subject, but it’s one that comes up often among Forex traders — when is it time to quit? The fact is that this is a field in which many people try, but few actually succeed. The failure rate among Forex traders is estimated to be higher than 95 percent (possibly even higher than that). Considering that, the odds are weighted heavily against you. The foreign exchange market is a tough place to cut it, and not only that, but trading can have an addicting effect on many people. There is a strong element of chance which is always present when you trade currencies, and so for many people who have lost a lot, it becomes a gamble to try and get back on top. Many people trade for years and years without becoming profitable. When do you call it quits and move on with your life?
This is actually a two-dimensional question that doesn’t take into account a lot of factors that play in your favor — the biggest one being the ability to demo test without investing a dime of your own money. When is it time to quit trading live? If you aren’t consistently profitable, and your wins and losses are both the result of chance, or your system isn’t working, it’s definitely time to quit trading with real money, but it’s not necessarily time to quit trading FX altogether. If trading is taking over your whole life, it’s time to take a break from trading live as well-and maybe even a break from demo testing, at least until you get your life in order. This is true even if you are profitable.
It’s important to realize that even people who are good at Forex and successful at it usually take years to get to that point. Those years are generally full of pitfalls and failures on the way to success. So if you’ve been struggling, it could mean Forex isn’t for you, but it could very well mean the opposite. You could just be struggling along the road to success and profitability. You shouldn’t be investing real money if you aren’t doing well, however, not when you can trade with virtual money for as long as you want or need. Take the pressure off your finances, learn responsibility and patience, and demo test until you are profitable if you still think FX is for you. It’ll pay off hugely in the long run. In other words, don’t cut yourself out of the running too soon — try and figure out if trading really isn’t for you or if you’re just going through a rough patch before you give up.
Anything, even profitable currency trading, can become addictive (most people have met at least one workaholic in their lives). It’s important that whether you have real money on the line or not, and regardless of whether you’re winning or losing, you learn to maintain a proper balance between trading and other activities in your life. Lead a full, rich life, and you’ll be far more likely to cultivate the right attitude for success in the market and in your other pursuits.
When you sit down to place a Forex trade, do you find it difficult to concentrate some days? If so, you probably should do something about it, since trading the currency market when your head isn’t in the game is a pretty good way to lose money. When you’re unfocused, you could make a poor decision which you wouldn’t usually make if you were thinking straight. You might miss key elements of what’s going on if your mind is elsewhere. Here are some tips for dealing with distraction when you’re trading the FX market.
- When you’re trading, don’t do anything except trade. That doesn’t mean if you’re in a trade for hours, days, or longer than you should sit in front of your computer all day. It simply means when you’re actually placing an entry or sitting down at your computer to analyze the trade you’re in and make a decision about it, that you shouldn’t also be watching television or browsing videos online. It may help you to actually make a list of Forex-related websites which you can browse while you’re trading so you won’t get distracted surfing the internet trying to answer a question.
- Let other people in your home know what you’re doing. Make it clear to others how important your trading is, and explain that if you are distracted while you’re working, you could lose focus and consequently money. Others should understand you need a quiet, focused environment while you’re dealing with the market.
- Keep your workplace clean and uncluttered. Try to keep materials around you limited to trading materials while you’re working. Some people also like to put on music while they trade — some music might distract you but other music might keep you focused. Classical music is a popular choice.
- Deal with potentially stressful activities after you do your trading, if that is possible. If you think you might find a distracting message from your ex in your email inbox for example, it’s probably best not to bother with your email until after you’ve done your trading. The last thing you want to do is trade while thinking about an unrelated and emotionally unsettling issue. In fact, if there’s nothing you can do about being really stressed out right now, you might consider taking a day off trading altogether so you can get your focus back.
The foreign exchange market is a great way to earn consistent profits, but you can only do that if the most important ingredient in your trading system is working — and that’s you. Being distracted while trading Forex is a recipe for disaster, and if you allow it to happen continuously you’ll be building up bad habits. So address issues of distraction now and start building good habits instead. Those good habits will help you to not only become profitable in the short term but also to create long term success and become a more focused individual altogether. Increased discipline and confidence can be another great outcome of FX trading!
If you have any ideas on dealing with distractions when trading currencies, please feel free to share them using the commentary form below.