Many new Forex traders think that successful traders have successful deals all the time. Most successful traders, as a matter of fact, trade with success rates about fifty percent and seventy five percent. Because of this it also means that they also fail fifty to twenty five pecent of the time.

If you add up all the losses made by a successful trader (in dollar terms) the losses are often much bigger than the gains or losses made by an unsuccessful trader. Therefore successful Forex traders are not only the bigger winners but also the biggest losers (in dollar terms). Trading activity is sometimes much more important to trying to get a hundred percent record at all times.


There are many reasons for this. Good traders have accepted the fact that losing is part of Forex trading. They therefore process and accept loses in a very constructive way. They are not distracted by failures or become emotionally upset. They view their losses as learning experiences and therefore get great value from loses. They also know that a trader's success rate is merely one of the components to a financially rewarding Forex trading career. They know that to succeed it take a balance between many trading skills and factors. These factors include sound money management, a positive and objective trading psychology, how many gains you make on gains, how much is lost on unsuccessful trades.

Using this constructive attitide allows them to trade more often (Not talking about over trading) as they are not distracted by trading psychology challenges such as depression and paralysis. They are also more confident at increasing the number of lots traded based on their past successes.

Successful traders therefore trade more and use more lots. Not only do they make more (in dollar terms) on their winning trades but at the same instance they lose more on their losing trades because their size of of lots are gradually increased.

Unsuccessful traders don't risk as much on their trading or don't trade as much due to their inability to deal with losses positively. This increases their insecurity and gives them a trading inferiority complex. Most unsuccessful traders are so distracted by their losses that they start their search for the Holy Grail over and over again every week.

You can save so much energy and time processing your losses positively. Almost all trading techniques can be made to be profitable by adding a number filters anyway (or reversing the trading direction on unsuccessful systems) so the trading system is the easy part.

Successful trader have a good money management process and a positive trading psychology.

Good traders lose money because it is part of trading (the market will always do what the market will do) and they don't lose any sleep about these loses. How well do you deal with your trading losses?

The biggest difference between successful traders and unsuccessful traders is the ability to manage losses positively.