I always see that Forex or stock traders look for the trading strategies that work better than others. All traders know that in order to trade currencies or stocks, you have to have a trading strategy that tells you when to get in and out of the markets, where to set the stop loss and target and things like that. They have to show you the best and most optimum time and point to enter the markets to make money.
You can always find good trading strategies over the Internet. You can learn how to analyze the charts and become a technical analysis guru after a while. You can learn how to read the candlesticks signals and patterns and locate the best and strongest trade setups. However, the question is why most traders still lose money?
I have been in touch so many traders so far, directly or indirectly. Almost 99.99% of them were used to lose, and as far as I know, most of them are still losing. One of the most important things that looks shocking is that many of them have been trading for so many years and they are so knowledgeable. They have read so many books and articles and they can name each and every one of the candlesticks that forms on the charts. But they still lose money. One of them that I know has been trading stocks for years, and when online trading was introduced to public, he started trading currencies as well. He can talk about technical analysis, candlesticks, fundamentals, etc., for several hours nonstop, and I think nobody knows more than him theoretically. Once, he bought a trading book that was over 5000 pages I think. He read the book entirely, and then suggested me to read it too, but I refused because I don’t spend my valuable time on something that is useless.
His trading experience was over 25 years that he lost almost 80-90% of his retirement savings in Germany’s stock market. His wife got mad at him and divorced him, because that money was her retirement savings also. That big loss was not his first loss.
Was his problem in his trading strategy?
Definitely not, because he was a good trader technically and he knew all the trading strategies. His problem was in his life style that didn’t allow him to control his emotions.
Before You Look for a Trading Strategy
Before you try different trading strategies to choose one of them, you have to have a proper living strategy. There are some facts that those who teach or sell the trading strategies don’t tell you. Most of the trading strategies are good and work, if you know how to use them, and if you use them while you have the proper life conditions.
1) Your Financial Situation
Most people start learning to trade while they have financial problems. Indeed, they become familiar with trading when they lose their jobs or they get bankrupt and need to have a source of income to cover their expenses to survive. They google for an option and then get into the trading world through an ad that sells a trading strategy or a trading course.
After a few days of reading and watching the videos, they think they are at the beginning of becoming one of the richest people in the world, because making money through trading really looks easy at the beginning when you look at the price charts.
Many of them open a live account even before they make sure they have learned how to trade properly, and before trying the trading strategy they have learned on a demo account. Unfortunately, some of them open a big live account and then wipe it out within a short time. Many of those who open small accounts also wipe out their accounts and reload them several times.
The most important reason is that they are SO EAGER to make money because they desperately need to make money. They have lost their jobs or the money they make is not enough to survive. They have to pay rent, mortgage, etc. So, they push themselves to make money as soon as possible. Unfortunately, because they have no trading experience, they think they are losing because of the trading strategies they use. Therefore, they look for some other trading strategies, but they keep losing. It is not the matter of the trading strategies.
2) You Have to Have a Good Source of Income
Keep in mind that you can’t make money through trading when you HAVE TO make money. I mean it is not possible to make money through trading when you don’t have any money and you have to pay your bills, rent, mortgage, etc.
The reason is that when you are in rush to make some money, you can’t analyze the markets properly and you can’t wait for the right and strong trade setups. You push yourself to enter the markets because you think it is better than doing nothing. Sometimes you do know that there is no trade setup and entering the market is a mistake, but you still do it, because doing nothing and sitting on the fence make you feel guilty, and you want to take action and do something to make some money as soon as possible.
Trading can be a great source of income to increase your wealth and improve your “income to expense ratio”, only when you are financially stable and you have a good source of income that makes money steadily. Trading is a supplement that can increase your wealth. It is really hard to make a living through trading as the only source of income. I don’t say it is impossible, but it is really hard.
You can enter the markets and make profit only when you have no financial problem. So, you pick the best trade setups and you enter the markets like a hero, not like a loser who is losing and has to enter the markets to run away from losing. Someone who has a good financial situation, chooses the best trade setups and takes the trading opportunities that his trading strategy shows, with peace of mind and power. He has enough time to think and decide. He is not in rush to enter the markets at any price. He uses his trading strategies in the best possible way and he enters the markets only when there is a strong and reliable trade setup which has the highest success probability.
If you like to become such a strong trader while you don’t already have a source of income that makes money consistently to cover your life expenses, then you have to create a source of income first. Or, if you have a job and source of income that makes money, but it is not enough to give you the peace of mind that you need for trading, then the first thing you have to do is to generate a perfect and strong source of income that not only covers your expenses, but leaves a lot of extra money to enable you to invest in currency or stock markets or both to increase your wealth.
Almost all of those who sell trading strategies and courses don’t share the above vital fact with you because either they don’t know it themselves or even if they know, they don’t care because they are after your money and want to make some cash from your losses. Many of them work for the market maker brokers and refer you to open a live account with them, even when you are not a profitable demo trader yet.
However, at The LuckScout Club, first we help our members to generate a great and strong source of income that makes a lot of money for them while we teach them how to trade and become a profitable trader.
The Right Trading Strategy Combined with the Right Living Strategy
If you are learning to become a trader to choose the trading as the only source of income to make a living with it, you won’t succeed most probably. But, if you have a good source of income already and you are stable financially, and you want to trade to increase your wealth and become rich and multi-millionaire, you have a much higher chance of becoming a good trader.
If you don’t have a good source of income already or your income is not enough, then don’t look for the trading strategies for now, because they don’t help. First, try to generate a good source of income that makes a good amount of money steadily. Then, while you are making money through the source of income you have created, you can start looking for the trading strategies and learning how to trade. Save some money for your trading business while you are learning how to trade, and then start trading with real money (live account), when you become a consistently profitable trader.
This is the right living strategy you have to have, if you want to make money through the trading strategies you learn. None of those so called trading mentors who sell their trading strategies and courses will tell you about this important secret which is the cause of most traders’ failures. Of course, it is not their fault because they are not professional traders and have never made any money through trading themselves, nor have they been able to make any profit even with a demo account. They just sell some trading strategies, or a short mentorship course to take some money out of your trading passion.
It is very easy to find the best trading strategies over the Internet for free. You can do it in our website too:
- Subscribe to our YouTube Channel
- Watch the below videos to learn the best and strongest candlestick signals and patterns:
– The Basics of Japanese Candlesticks Patterns and Signals for Forex and Stock Traders
– Bollinger Bands and Candlestick Engulfing Patterns to Trade Forex and Stock Markets
– A Strong Forex Day Trading Strategy
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But something that is hard to find is creating the right living conditions that enable you to learn the trading strategies with peace of mind to become a consistently profitable trader eventually.
Becoming successful in something is not always the matter of being in the right place at right time. It is also the matter of getting supported by the right people.
Follow us, if you like to generate a source of income that supports you to become a consistently profitable trader.