Have you ever thought of giving it all up and turning your back away from forex trading? It probably happens to everybody. 8 forex bloggers share reasons to NOT quit trading.
Reasons to not quit trading – By Jakob from TradeProfits.net
The obvious reason why you want to quit trading is most likely due to huge losses along with being scammed by marketers promising rags to riches within the end of the week. You have tried just about everything and nothing seems to work. Quitting seems like the only reasonable choice to make. However, more often than not, this is the exact period where you learn some of the most important lessons as a forex trader. Because of expensive losses, you are likely to re-access your trading approach with a more realistic goal in mind. When this happens, the sense of urgency to make quick bucks diminishes, and hence the ability to make more rational trading decisions increases, often along with a stronger focus on money and risk management.
Most new traders will blow up the first account or two before they either quit the game, or start to take things more seriously. I think a good way to approach this is by thinking of the initial losses as a fee for learning the most important lessons when trading the markets. If you quit the game after the first account is back down to a big fat zero, you have paid an expensive lesson for nothing. This is exactly the point, where you should give the market and your own ability a second chance.
Don’t Quit Because It’s Impossible to Quit – Simit Patel, InformedTrades.com
The most obvious reason to not quit trading is because you can’t: the fact of the matter remains that if you ever need to purchase something again, you need to find a way to store your wealth. Is it safe to store your wealth in US dollars? In Euros? In Yen? The answer to those questions has been YES for a long time, though it is clear that our global economy is more uncertain than it has been in some time. The solution is to learn how the global economy and how financial markets work. When equipped with a real education in trading and financial markets, you can make financial planning decisions with confidence. The fact of the matter remains that the financial markets are inescapable — and so you are better off learning how to participate and trade to ensure you can make the best of the situation.
Yohay Elam– Forex Crunch
Thoughts of quiting usually come after a very busy week of trading resulting in losses. You ask yourself: Why am I spending so much time in trading, and eventually losing my money?
Well, the answer is inside the question – you over-traded. You lost one trade and where in a rush to compensate, putting another trade without thinking too much, and this results in more losses and thoughts of quiting.
It doesn’t mean you can’t win! Get back to trading, but do it with caution. Analyze your good and bad trades and you’ll eventually see the fruits.
Quiting? Think it over! Mike Kulej FXmadness.com
There is not one person in this business who a one time or another, either wanted to quit or did so. Most common reason is a loss, or a string of losses, but also stress and lack of progress. Before you quit, ask yourself what went wrong? Was it the strategy, a lack of one, over leveraging, over trading, not sticking to a trading plan, changing strategies too often? Perhaps it was a lack of education or simply unrealistic expectations? Once the source of failure is identified, you can take steps to correct past mistakes and make improvements.
Trading is no different than any other endeavor in life – it takes time to become good at it. It can be very fulfilling, lucrative and satisfactory in more ways than one, providing that the trader put enough work int it. So, think it over, focus on the potential rewards and try again. There is a light at the end of the tunnel!
This is a long Road but look at the big picture. Casey Stubbs Winners Edge Trading
The first time I had finally thought that I had trading all figured out I was on a streak where I had been profitable for 3 months in a row and I was profitable by a very large sum. I was so excited because I boldly declared that I had finally made it in the world of Forex trading. It was at that same time that I started getting careless because I thought my skill as a trader was superior to money management rules. I bet you can guess what happened next? Thats right, I blew out my account because of being over confident.
I was devastated because 3 months of hard work was wiped out in an instant. Now I had to work hard and go back to the beginning and I didn’t have the funds to do it. It was at this point that I thought long and hard about quitting trading. I hope you can relate to the position I was in. As a result of my large loss not only was I thinking about quitting but I also had to battle a large psychological fight in my mind. I started to believe that I would never make it as a trader. So as a result of one catastrophic loss, my trading took a turn for the worse after that I could not buy a trade my trading went from bad to worse and remember this is right after I thought I had finally mastered the art of trading.
So did I quit? No! I kept at it and I learned from my mistakes and eventually I learned to avoid the big mistakes as well as make the good trades. So my recommendation to you is no matter how bad you want to quit don’t do it unless you are financially dangering your family. If you don’t give up and are willing to change then you can succeed as a trader.
No one will give your time back. – Liviu, innerfx.com
I don’t know what others should do in order to decide not to quit trading, but I can share some of my experience.
During my 8 years of trading, I’ve been tempted to quit trading. Not because huge losses but rather because sometimes I thought I am lacking motivation.
It is utterly important to know why do you trade: Wealth preservation? Extra income? For fun or gambling? Just out of curiosity? to become rich soon?
What are you trying to achieve? Is your goal as a trader realistically achievable? If yes – then don’t stop.
When things go wrong, take a break if you must or make smaller trades, to minimize the potential loss.
One of the reasons i didn’t quit is that I’ve already invested too much of my time into trading. If I was to quit, who can give me my time back? …the countless hours spent staring at the charts, counting pips, testing strategies, reading articles and news, talking to other traders etc.
It’s like running a business which does not prove profitable enough after some years and you get to decide: close the business and lose your entire investment or invest more, while being more careful, and try a different approach, turning it into a profitable business?
It is not the end of the road. – TheGeekKnows.com Forex Articles EUR/USD Reviews
With 3 margin calls to my name, it was a long hard uphill ride for me. You are not alone.
The first and most important thing you need to do in order to break out of this cycle of failure is to acknowledge the fact that forex trading is not a get rich overnight scheme. Understanding this is crucial as it will eliminate your tenancies to over trade, trade emotionally or trade with excessive risk.
Now that is done, you need to constantly remind yourself of the above. Tell yourself that you have had enough and you won’t want to have another margin call. Read up on reputable forex articles and reviews and gain a better understanding of the forex market. Have quality discussions with fellow traders and learn from one another. Understand that proper money management is a must.
We all want to achieve financial success from forex trading and now knowing that all it takes to achieve this is the awareness of a journey of learning and patience which probably everyone can undertake, is there a reason to quit forex trading or not?
Further reading: It Hit Stop Loss? That Must Be Wrong