I was shocked when I found out that not even the averaged seasoned forex investor knew what was behind the indicators they were using. Many of these traders were also the ones that have blown out their accounts and fail to understand why this is the case. Do these people who call themselves “investors” really understand what they are risking?

It seems during these violent periods in the markets that the statistic of 90-95% of forex investors that fail should be raised to the 98 percentile. With the risk of not knowing when indicators fail and not having a hard risk management plan in place, more accounts are being whipped away into the sea of red and green candle charts.
So instead of focusing on how much money you’re going to be making on your next trade… or trying to find the best way for your indicators work and always focus on the positive, maybe it’s time that we all focus on the negatives first. Where our stop loss is set, what our maximum loss will be on any given trade, what is the worse that could happen, is probability working against us?

If we focus on these negatives, we would find ourselves looking negatively at our indicators and wondering where they fail. I ran across a website that does forex online videos that focuses on the negatives in the market. It teaches you when indicators are wrong, what to watch for, and how to recognize fake outs. Their website is http://www.forexonlinevideos.com and is one that I would recommend.

So next time you’re about to take your next trade, start thinking more negatively and look for reasons why your trades won’t work and learn how your indicators fail.

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