You must have heard this fact many times that more than 90% of new traders fail and give up in a few months. Only a few survive in the long run.
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 hitting big never deters people from starting new businesses. The same applies to forex trading.
Kathy Lien is a professional forex trader. She is a great teacher and writer too and has written many best selling books on forex trading. In one of her books, Millionaire Traders, she relates the story of 12 ordinary people who beat the Wall Street at its own games and made it big.
All these 12 stories are remarkable. The rag to riches story of Hoosain Harneker is especially worth mentioning. He lost almost all his saving 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.
He took six months to save $1000 to open an account and start trading live. During those six months, he practiced and practiced his forex strategies on the demo account.
He promised his wife that he would never trade forex again if he blew up that $1000. All the 12 people in the Millionaire Traders blew up their accounts in the beginning 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 requires a lot of discipline. Learn from these 12 ordinary but remarkable people who had the discipline and determination to make it big.
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