The main reason why traders lose their money is so-called “algorithm spikes”, and we’re sure it’s the biggest mistake transforming 95% of traders into losers.
Algorithm spikes are trader’s constant changes of his trading system, indicators, buy or sell signals, etc. It’s quite normal if you still try to find your own way, style, and strategy, but it’s not if it takes you months or even years, then your chance to become successful on the Forex market is the tiniest.
Why do traders often change their trading systems?
Actually, it’s all because of laziness. And for a number of years, traders try to find a magic way to make lots of money doing nothing. They keep changing strategies trying to find an ideal one because they underestimate the role of losses and believe it’s possible to win every time.
A profitable trading system is created piece by piece for months or sometimes years. What’s interesting is the weakest link in any trading system is a trader and not an indicator or something else. One need only to look at your own system and it might be quite useful, so the one reason of your losses is you.
Why do traders changing their strategies to lose all the time?
Every time you change a strategy, you start from scratch and lose your previous achievements. That is why some traders lose a lot of deposits. You have no chance to become successful in this sphere if you’re a trader of this type.
To become a successful trader you have to overcome all obstacles. It’s impossible to achieve success without hard work or confrontation. There’s no free lunch in this world. Nothing is simple in life.
Some traders make two good trades, then they bear losses and change their strategy. It’s not right! Have you ever seen a successful trader who changes his business plan every week?
Resistance and perseverance are the two elements that are key to success in any sphere. If your resistance in trading manifests itself only in constant changing of your strategy, it’s better to try your fortune in a casino. Master Martingale’s strategy. Believe me, the result will be the same. You might get lucky.
Suggested articles: How to find the best risk/reward ratio for successful trading