Profitable Forex trading is not easy. In this article, I will share with you 2more tips that have helped change my mindset about trading for the better.

Tip #1: Don’t Try To Pick Tops And Bottoms

Never try to predict market tops and bottoms. There are many traders that are obsessed with trying to pinpoint the exact time when prices will reverse, hoping to ride the market when it does. These traders are called contrarian traders because they’re betting against the current market trend. Contrarian traders may succeed every now and then but more often then not, they suffer multiple losses.

If you insist on contrarian trading, you should at least wait for a confirmation signal before you enter into the trade. Look for an actual price reverse before buying or selling. Don’t just guess.

Tip #2: Don’t Sweat The Bad Stuff

All traders go through days or even weeks of losses. There are good days, and there are bad days. There are good months, and there are bad months. It’s normal. Don’t worry too much about losing… it’s all part and parcel of the game. The trick is not to let any of your losses snowball into something unmanageable! Always use reasonable stop-losses to protect yourself. The point is to live again to fight another day.

So don’t let a bad week or month put you down. Don’t measure your results based on a few bad trades. Many traders give up after having a bad week or two… don’t give up! Understand that losing is part of this business. Just manage your money well, be persistent, and the money will soon start rolling in.

Online, you’ll often read about Forex trading advertisements that boast ofmore than 90% winning trades.

Sounds great doesn’t it? Would you pay $100 for a trading system that may win 90 out of every 100 trades?

If you answered “Yes”, you’re in trouble!

Unfortunately, the truth is that a high winning percentage has little to do with being a profitable trader. In reality, it’s easy to have 90% of winning trades and still lose money.

Don’t believe me? Go ahead a search online search for the “turtle traders”. If you’re familiar with them, you’ll know that they are very profitable traders with only a 20% winning trade percentage.

Allow me to explain

Imagine you make 10 trades in a month, and 9 of these trades are profitable for $1 per winning trade. This means that you have a winning percentage of 90%, with $9 in profit.

And if you have only 1 losing trade out of 10 (i.e. 10% losing trades), but you lose $10 on that one losing trade. In total, you would have lost ($9 – $10) $1 among all your ten trades.

Can you now see why a high winning percentage doesn’t mean that you’ll be a successful trader? You see, it’s not about how often you win, but how MUCH you win.

So don’t fall for the marketing tricks

Many advertisers use high winning percentages as a sales tool to get you to buy the trading systems they are selling. They know that traders like to win all the time, and who doesn’t like to win often? These advertisers try to appeal to everyone’s desire to win, and unfortunately many people fall for their trap.

Conclusion

It’s easy to have 90% winning trades and still be a losing trader. At the same time, you can have a low winning percentage, but be a very profitable trader. In reality, winning percentages have very little to do with a trader’s success.

So don’t fall into the advertisers’ trap when you see their “high winning percentage” claims next time. When people use high winning percentages as a sales pitch, chances are that they know very little about what it truly takes to be a successful trader. Be careful!