There are several reasons why you should stop trading today.
What? Why does someone who sells MQL4 trading courses talk about such a topic?
Because it’s true. Most people fail in trading.
Some say 80 percent, others say 90 percent or higher.
Nobody knows exactly, but by far most traders seem to lose their money. Here are 5 reasons, why…
1. Do you know if your trading system really works in your favour?
Most people hope, I think.
They have decided to trade a system somebody recommended.
Or worse, they copy what somebody else does without knowing if and how it works. So they hope for the best.
Can you calculate your profit expectancy based on a few thousand trading results?
Do you know how your tading system works?
If not, you should probably stop trading it.
I have thousands of trades in backtesting and real time to backup my belief in my own system and I do know exactly how it works.
Tip: You can use MyFxbook.com for free to give you sophisticated insights and statistics for your own trading system. See mine below in the show notes.
2. Do you know exactly what your trading costs are?
You know what a daytrader is, right?
Why do you think a daytrader closes his trades when the trading day is over? Because of costly swap fees.
If your broker charges you fees that are above average, you should probably stop trading there.
I have done an extensive research for about three weeks to find the right broker for my needs.
Tip: My preferred brokers today are Roboforex and Forextime.com.
The site Forexpeacearmy.com is a good start for your broker research.
Or just google for zero amanah accounts.
3. Do you know what happens with your money if your broker goes out of business?
You know the name Alpari, right?
On January 16th 2015 Alpari UK went out of business.
The day before the margin requirements were raised like crazy and all open trades were closed within minutes as the Euro Swiss franc currency pair went insane.
If all your trading capital is in one basket and your broker is not regulated good enough or has not enough equity, he will make you stop trading very fast.
It was under an hour in my case. At 10 am on January 15th everything was fine, about one hour later my (thank god demo account) was history.
Tip: I always use several smaller accounts with different brokers.
Regulated brokers with MIFID regulation and account insurance are preferred.
4. Are you overtrading with a small trading account?
If you open a trade, it might turn out to be a loss.
That might be costly if you are using a leverage that is to big or if your LotSize is far to high.
Do you know, what leverage you use, what your margin requirements are and how much you can risk with an account size like yours?
Your broker will always try to get you to trade bigger amounts with special offers and bonuses. Why do you think, he is doing that?
Tip: I believe good trading should be boring.
I need 200 Euro trading capital to trade a single Microlot and I would consider everything below that to be risky.
I didn’t want to know that first, so I had to pay cash for this insight.
5. Do you feel fear, sorrow, ecstasy and frustration on a regular basis?
Trading can be psycho terror.
I truely believe 8 out of 10 people shouldn’t trade at all.
Have you ever made revenge trades to force the market to give you your money back?
If you are too emotional and losses and profits dictate how you feel, trading is probably not for you.
You might consider to stop trading at all. Only a tiny fraction of traders survive the first year without killing their first account.
Tip: I am glad I found MQL4 and automated trading very early in my trading career and I depend on automated trading 100 percent today.
I haven’t made a single trade myself for about a year and I exactly know my numbers. What could help you to sleep better?
But don’t believe me!
Create your own system in whatever you prefer, based on reasonable believes, lower your trading costs, find a good, regulated broker, don’t overtrade and get your emotions out of the way.
If you can do that, you might be far ahead of most other traders!
And than you probably do not need to stop Trading at all…