Why 90% Of Forex Traders LOSE BADLY and How To CHANGE IT Forever!

Hey guys, how are you? Vladimir here from Home Trader Club, and in this video I would like to cover a very sensitive subject but yet very, very, very important one: why most forex traders lose in this business of trading and why so many of them lose actually so badly. And not just that, I'm not going just to mention the reason. Let's talk about also how you can actually change it. And like anything else in life, it all starts with good, positive little habits, step by step. There is nothing drastic and dramatic that has to be done It's the little changes of the things that cause you to repeat over and over and over the mistakes and eventually lose badly. So let's start. There will be many important topics I would like to touch here, so let's begin. So one of the biggest issues with trading and one of the biggest things leading the traders to lose badly is lack of education and understanding where they actually stop. The dream of making fast money, quick returns, get rich fast scam— I would call it this way— blurs the eyes of the investors, the retail traders, the beginners, those who enter the market with some imagination, wrong imagination of, oh, that's a great way to make money. But what is trading world? What is the price you have to pay to be involved in? How does it work? Nobody cares. Everybody cares about the final result, not about the way Not about the journey. And very sadly, many traders just dive into the world of, you know, forex trading, or not just forex trading, it could be any financial market, without really solid understanding about the market. Who are the players? How does it work? When it's real time to buy, real time to sell? Without having the proper tools, without having the proper proven strategies, without understanding how to manage their exposure and their risk. Okay, so in order to change that, again, I mentioned before, it all starts with the correct habits. Little changes bring big results. Okay, and to change that, you have to There is no other way. Well, of course, if you are serious about trading. If you are not serious about trading, then skip this video. Just skip trading world. You are wasting your time if you're just trying, you know, to make some extra pennies without understanding what are you doing. It's not a lottery ticket here. So you have to invest the time in learning about the forex market very, very deep. Various strategies, proper risk management, trading psychology— how to deal with all the emotional roller coaster and all the emotional mountain you are going to face here. There are numerous resources available online. You can find books, articles, courses, webinars, of course communities. Just do your research. Of course, I invite you to join our community the Home Trader Club, where you will get your access to absolutely everything, starting from trading courses, real-time trading education, and real-time trading opportunities, and so much more. You can learn about the Home Trader Club and everything we have for you right below this video in the description. The next important subject is actually very poor risk management. You see, failing to manage the risk is maybe the most common reason for a loss. It's like, I'll explain what does it mean to manage the risk, okay? Imagine you are going to a supermarket, okay? And all you need to buy in your imagination is milk. Milk. You enter there and then you end up, oh, I didn't see this product for a lot for a while. Oh, that looks tasty. Oh, that looks good. And without even paying attention to, you find yourself taking so much more than you actually need. And then instead of just buying the milk and, you know, put your $5, $4, $10, whatever the price is in your country, you end up with $50 or $100 or $200 for some of us. So trading is not different. You, you have to understand that every trade you approach to actually, you know, participate in, if you don't have proper understanding what are you risking versus what are you looking to gain in this statistical business and you don't track record it then there is no way it will work for you. It might work for you one time, 2 times, 10 times, but for the long run it will fail you. Okay, so it's seriously, it's like, um, expending more, um, money than you actually make. Can you imagine your income is $5K but your expenses are $8K? So you think you are doing good, but for the long run, you are doing absolutely wrong and it will be costly. So to improve the risk management, you have to understand and learn the terms of risk-reward ratio or average risk-reward ratio. It means how if you are risking 1% per trade or 0.5% per trade or 2% of your balance, Per trade, okay? What do you expect in terms of the reward if you're doing it less than one to one? Okay, many traders like risking. I'm not even talking about a stable percentage, but risking. Let's say just for example, one percent of their money. Okay, let's say it's $1,000, for example, or $100, for example. But then they just see plus $10, plus $20. They get excited and they close it. How? No way. Okay, so the total risk— what you are risking per trade or per series of trades. Some, some traders love to trade with several attacks. So whatever your trading style is, there must be a maximum accepted risk for a trade sequence of trades, series of trades, total exposure for the day, the week, total exposure for the investment. Everything must be under control, and your reward on average must be bigger than your risk. Okay, um, so it's, it's one thing. The second thing is be aware what you are risking. Oh, there are so many traders risking way more than they actually should. So many traders come in, deposit $200, $500, $1,000, whatever their pocket allows, and they ended up risking— imagine, I, I saw that with myself, with my eyes. A trader starts with $200 risking $50 per trade. Yes, if things go good It will also boost his profits. But for the long run, there is no way it's gonna work. No absolutely way. There, there, it doesn't exist. It's impossible. Okay, and I want to tell you a story here. When I was working in 2006, um, yeah, 2006, uh, for a broker house, I saw with my eyes how one Brazilian guy turned $2.5K— listen carefully— $2.5K to $250K, quarter million dollars, within a matter of like several months. But in one Black Friday when the market collapsed, he lost everything. Not 10%, not 50%, everything, ended up depositing $10,000 more, $20,000 more, $100,000 more just to try and to revenge for the losses. You can imagine yourself how it happened, how it actually ended. So no one is immune to the market characteristics, and unless you really properly manage your risks and your exposures there is no way you will do successful trading for the long run. Okay, it must be mathematically correct, uh, logical, with a maximum risk you can allow yourself compared to your return. There is no other way around. Let's talk about the next subject. How can we avoid the emotional decision-making, right? Emotional trading leads to impulsive decisions and a lack of discipline. To overcome this, you have to develop a very specific and detailed trading plan, and you have to stick to them. I mentioned before, like going to a supermarket or anything else you are doing, if you are just, you know, for example, you have, um, for your vacation You have a budget of, I don't know, $2,000. Okay. But when you go there, you literally have no idea what's going on. You keep buying, buying, buying, buying, and you come back because of emotions, right? You, oh, I want that. Oh, I love that. Oh, that looks so good on me. Oh, that looks amazing. I'll, I'll deal with it later. Whatever your reason, whatever your excuse is, but then you come back. And you get— you, you grab your head between your arms and like, what did I do? So this emotional decision-making without a proper plan of what you are going to spend would cause very serious headaches for you for the long run. So the trading plan you have to create must outline your entry, your exit points, your management rules, your trading strategies. And only by following a specific plan, you are able to work clean towards your goal. There is no other way around. Many tried. Many failed. You don't want to be one of them? Do things differently. It all starts with changing your habits. Another very important subject here is, of course, overtrading. Overtrading can result in high transaction costs and reduced returns. To avoid overtrading, maintain discipline. Only enter trades when your strategy dictates. Okay, you must be patient and wait for your right opportunities. Imagine yourself going to gym. We all did that. All of all of you who went to gym will know what I'm talking about. You make your membership, you go to gym, and you like go all in, right? Pushing hard, pushing hard, pushing hard. Eating clean, drinking your protein powder, whatever it is. It lasts for a week. Two weeks, a month, two months, or a quarter. Then, eh, let's bend it a little bit here. Let's bend it a little bit here, and eventually we reach some sort of plateau, and the progress is gone. So the overtrading or overtraining, as I mentioned for for the gym case, could cost us harmful long run because at some sort we reach the peak and we go we reach the plateau and that's it. The way back is guaranteed, but also it could cause injuries. If you train more than you're supposed to, you expose yourself to injuries as your body would not be able to recover. Overtrading is the same. If you keep pushing the buttons again and again and again and again and again and again just because some indicators crossed or just because somebody said okay or somebody sent a signal. Or somebody just did something or said something or whatever, you are overtrading. When you are overtrading, your brain stops thinking properly and clean. And when the brain is not sober, when the brain is not clean, the road to make mistakes and impulsive decisions is guaranteed 100%, not 90%, 100%. So the more you sit in front of the charts, the more you click this button, sell, buy, sell, buy, sell, buy, the more you are involved into trading, the more or the bigger the chances you will make a mistake. So in order not to fall into this trap, you must develop your trading plan, clean rules. Only when the rules really happen to be, you enter a trade. Not because somebody said, not because somebody alerted, not because somebody hoped or you hoped or you heard or you saw or you read, but because your trading rules meet. Next one would be lack of consistency. Many traders change their strategies so frequently that it simply leads them to inconsistency and lack of progress. It's like I mentioned before, the example of Going to a gym, and if you change your program every single week or two or a month, you can forget about result. And same about relationships. For example, you meet a person after one or two or three meeting, you already make a decision. Yeah, not going to work. So of course there are some cases that you really have to abandon it. But in general speaking, or like. Job. And people go to job and after 1 day or 2 days or a week or a month they say, eh, eh, not for me. You can't do it over and over and over and over and over again and expect different result. Lack of consistency eventually will lead you to starting point all over again. Without— instead of saying progress, all you will do is progress, Progress, crash, progress, crash, starting point over and over and over and over again. To simply beat that, what you have to do is to find a strategy that suits you and suits your personality, suits your risk tolerance, suits your availability, suits your trading style. So it's your logic. So you have to understand what you do and not just, oh, it crossed, I buy, I sell. You really have to understand what you are doing and why. And then only then, when you develop that, you find it, you track record it, you prove it's consistent. And yes, it takes time. It takes time. Every good thing in life takes time. So Yeah, okay. So consistently evaluate your performance and refine your strategy based on your results. I keep— after years of doing the same, I keep polish my, um, trading style every single time. I track record everything, I go over my trades, and I really try to define where am I going wrong, why am I going wrong, and learn to improve. That. If you don't do that, don't expect growth and don't expect consistent profits. Unrealistic expectations is one of the things that lead to disaster, like blowing accounts over and over and over again and eventually giving up on trading, causing you just burn your time For nothing. So many traders enter this market with unrealistic expectations, okay, of becoming rich overnight. Rich, get-rich-quick scheme, okay? It's, it's, it's absolutely ridiculous. I cannot blame the people. That's what the internet promises. But look, you You cannot do the same mistake like thousands do and expect different result. Everyone said to me, it's not, it's never, it will never happen to me. It will. It will. Because you think you are different. You are not. The market is a jungle covered with sharks or lions or you name it. that are trying to take the money one off each other. If you want to be on the winning side, you must start with realistic expectations. Yeah. Realistic expectations means how much you can really expect to gain with what you put. Yeah, if you trade once in a week just for 10 minutes and you expect to do like 10% a month or 20% a month or 100% a month, there's no way you're gonna do it. Absolutely no way. It also— the expectations should be also mentioned about the strategies. If you are a day trader, you cannot expect to trade every day. So sorry, if you trade based on the daily timeframe, I meant to say, you cannot expect to trade every day. Okay, if you are a day trader, you cannot expect to to get paid every day. There will be good days, there will be bad days, and you must accept it. The expectations must be realistic about everything. And do never, never let a bad day, week, or a month affect your long run. If you will, then you're wasting your time. It will always take you back to the starting point. Over and over again. Okay, so unrealistic expectations always—not often actually—always leads to poor decision-making and lack of discipline. Okay, to avoid this, you must start with setting realistic goals and understand that this trading world—it's all about long term. It's never about the short term. And if you keep chasing quick results, changing the strategies, or you know, the systems or whatever you are using because you didn't make fast returns in a week or in a month, then you would actually just keep going over the same line without seeing any progress, without seeing any changes. So The expectations must be realistic. It's like I mentioned before, the gym part. Okay, this, this subject is close to, uh, my— too close to me because I, I love working out. But you can't expect fast results after 2 weeks or months. And if you will get disappointed, then you would get nowhere. Okay, same about relationships, same about new job, same about new business, same about your kid that you are sending to school. You can't expect them to, in grade 2, to know math of grade 5. You can't. If you just, you know, sit on your bicycle for the first time, you cannot ride like a professional the next day. It doesn't work like that. So you must stick to realistic expectations. This one will be very important subject: inadequate capitalization. So trading with small account can make it difficult to manage risk effectively and may lead to excessive leverage use. Think about it this way: if you deposit $100 or $200 or $1,000, and I'll tell you, you must risk maximum 1% from your trade. So think about it, from $100, 1% is $1. Who is going to risk $1 per trade to make what, $2, $3, $5? So many people really laugh at it, which makes sense. It's very small money, right? But you have to understand, if you are unable to control your percentage, your risk management, your exposure management properly with small money, you would never be able to do it with large accounts. Simple. If you cannot survive with a small income, you would never be able to survive with higher income. You know why? Because your expenses grow, your lifestyle grow, your demand or your expectations grow. You want more. Same about trading. The more money you have, the more you want to make, which means the more you are ready to risk. Okay, so if you are unable to control yourself properly with small account, you would never be able to do it with large account. But before you even consider going to large account, you must prove you are able to do it with small account. If you prove you are able to survive and develop some stable growth, then and only then you should consider growing slowly and gradually. Okay, because if you try to skip these levels, we already discussed about that. Okay, you rush, you you crush. Record keeping— it's an extremely important subject, especially when it's done and it becomes insufficient. Failing to keep a detailed record of your trades can make it difficult to identify patterns and learn from your mistakes. To change this, you must maintain a trading journal where you document your trades, including entry and exits, risk management decisions, and outcome. Okay, regularly review your journal to learn from your successes and, and mainly failures. Look, I mentioned before about going to the supermarket. It's absolutely the same. You, if you don't control your budget, you will end up with, at the end of the month, spending more than you bring, than you make. That simple. If you don't track record what you consume eating, you would spend up eating more than you spend. It's that simple. It's all about numbers. Same about track recording your journal. If you don't track record, you have no absolutely no idea what's going on. Many traders tell me Vlad, but I can always check the you know MetaTrader four or MetaTrader five or Trading, whatever the account is, okay, I can always see that. Yes, you can. You can see the history, but you cannot see all the decisions you've made. If you follow the strategies rules, if you follow the risk management rules, if you followed your proper decisions you have to do for entry, for exits, for the management, for exposure management, for risking maximum for a trade, for a week or for a month, and so on and so on and so on. Yes, it takes time. Yes, it takes effort. But if you don't do it, you are wasting your time. So decide what's better and what's smarter. You must track, record everything clearly, and learn from the mistakes you do, and learn from the good things you do. So that's The main reasons, of course there are many more, right? We can talk about it like for, for days, not for a video, for days on this subject. There are many more, uh, things that could lead traders to do mistakes and wrong things, okay? But these are the main ones that continuously causing troubles over and over again. Look, I mentored so many students in my trading club and privately, working one-on-one with my students. I saw all the possible mistakes, and it all sums up to what you just saw. These mistakes repeat over and over and over again. You change these little habits, you will be surprised from the result you will achieve. There are no secrets. There are absolutely no secrets. There is just clean work, good habits, and repeat. That's it. So that's all for this video. I hope you find value in it, and if you do, I really have an honest request from you. Please hit this like button below this video. Subscribe to the channel if you are new to this channel and welcome to our amazing community. Feel free to share this video with anyone you would like. It's open for the community and I hope it helps others to look at trading differently. And I would like to take the opportunity and to invite you to our trading family, the Home Trader Club. Where you will get your access to our full trading courses, where you will be taught by myself real-time trading education, real-time trading opportunities as we spot them. Every single trading opportunity comes with detailed explanation. You would have the access to all our trading tools. Our ebooks, and so, so, so much more. So join us with the link below this video in the description, or the one that you can see here on, on this image, and I hope to see you with us. I wish you and yours all the very best. Thank you very much for your time watching this video, and I hope you find it— the value in it. And I'll see you soon with more. Bye for now, and good trading.