4. Do you
believe the markets are scientific?
If you do
you are going to lose.
The far out
investment crowd love theories such as Elliot wave and cycle
trading and think prices move in specific patterns that are
scientific and can be predicted.
markets were scientific and we could predict them with
scientific accuracy, there would be no markets, as everyone
would know the price in advance!
an odds game and any trader who thinks the markets are
scientific should take a look at standard deviation of price
Ė if you donít know what it is look it up.
5. Do you
have a method you have ultimate confidence in?
If you are
not prepared to take responsibility for your actions or
follow someone elseís theory you probably wonít have total
confidence in your method when it hits a losing streak (and
trust me every system does).
donít have confidence you wonít have the discipline to
follow your trading signals when they lose and still have
the confidence to know your going to win longer term.
is the key to successful trading and most traders simply
donít have it.
6. Do you
like taking a risk?
donít enjoy taking risks then forex trading is not for you.
traders try so hard to restrict risk they actually create
it, by snatching profits and never covering their losses.
sweat about the markets or constantly want to check prices,
then do yourself a favour trading is not for you.
7. Do you
have patience and discipline?
already talked about discipline and hand in hand with this
trait goes patience.
patience to wait for the right opportunities and ride out
losing periods - that for most traders can run into several
months and not throw in the towel.
8. Do you
think knowledge is power in the markets?
think that being clever is going to help you think again.
trading attracts some very clever people and a lot of them
that if they apply their knowledge and build clever
complicated systems they will win. They also tend to be
stubborn and never accept their wrong.
humble trader with a simple system will beat a clever trader
with an ego every time.
Trading the right knowledge is power, not knowledge for
9. Do you
know your trading advantage?
make you successful while over 90% of traders lose all their
donít know what it is, you donít have one Ė so get prepared
10. Do you
enjoy the challenge?
donít find risk taking a challenge and fun and you canít
cope with the frustration that currency trading can present
at times forget trading.
have 10 questions.
If you answered all of them correctly, you
have a chance of entering the elite 5 Ė 10% who make big
consistent gains in currency trading.
By Kelly Price