And who better to say it than Jack Schwager, my favorite author when it comes to trading books. The actual process of trading, however, should be effortless. The hard work in trading comes in the preparation. The real question is, do you have the passion, commitment and resilience to find it? And it’s one of the reasons why it takes years of hard work and dedication to become a consistently profitable trader. Only you can discover it because it has to fit your personality. There is, however, a best way for you to trade. There is a popular notion amongst traders that there is a certain magical formula that will yield the most profitable results with the least amount of drawdown. Jack points out what is arguably the most misunderstood aspect of trading. Those seeking the one true answer to the markets haven’t even gotten as far as asking the right question, let alone getting the right answer. There is no single market secret to discover, no single correct way to trade the markets. If that means risking as little as half a percent of your account balance per trade, so be it. So with this in mind, the best way to mitigate against this fear and allow logic to prevail is to reduce your position size until you’re 100% comfortable with the loss. The best trading strategy in the world won’t do you any good if you allow emotions to trump logic.Īnd what is the number one reason traders surrender to emotions?īut that fear only becomes debilitating when you allow the potential loss to exceed your comfort level. The number one reason 90% of traders fail, in my opinion, is because they get emotionally compromised. I’ve listed this quote from Joe Vidich first for a reason. Limit your size in any position so that fear does not become the prevailing instinct guiding your judgment. Plus, get my daily Forex newsletter with exclusive Forex trade setups and strategies. BONUS: Download the free PDF to keep these lessons in front of you at all times.
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