For those who start trading on the Forex market, the aim is to make money. Success in doing what they do and making profits from their investments is the desired and desired result of this work. Individuals trading in the investment market are mostly focused on the investment strategy and the profit to be bought and sold. However, when investors are investigating the reasons for their failure, we can see that a large number of investors have failed to make transactions. The main reason for this is that investors do not have a plan and they determine investment strategies according to daily data, interpretations, and analyses. If it is well analyzed that what investors can face in the market, this question will come to an end. However, this is not an instantaneous decision. Because human psychology and the people who are instincts are the most important factors that push the wrong. When fast money is added to the vigor; It is a fact that most of the decisions given instantaneously in investment markets will result in frustration.
What are the Elements of Investors’ Failure?
The greatest reason why one person starts trading in the investment market is; Profit factor and how much money you can make from transactions. This causes investors to focus on where to enter, rather than why they entered the marketplace. In general, this is the first thing we need to do and the focus can be shown correctly. However, this means that people are risking themselves and ignoring other factors. A new investor should plan the transaction plan under 3 main factors. These; Transaction Tendency, Money Management, Methodology, and Psychology …
Many people focus on methodology; Transaction tendency, money management, and psychology. The biggest reason why investors have failed is that they are hidden in these ignored elements.
Everyone knows that psychology is a major factor in our investment. But investors do not or do not think that psychology has a vital proposition on the market. For this reason, they are constantly turning to methods, inputs, data and trading systems. However, there is no point in who you are to make a successful transaction. You need a realistic action plan in your hand, and this plan is the most important one for you, a plan that is right for you.
What are big and successful investors doing?
When looking at large or successful investors; It is seen that there are consistent process plans and they continue to invest in this plan faithfully. Every day they apply this plan and this plan is the best investment plan for them. When it is asked whether there are trading plans with unsuccessful investors; You hear that many give “no” answer.
The main result of the research is that;
Successful investors have a trading plan and unsuccessful investors do not!
The above research and conclusion are; Proves that the real thing is the most important transaction plan on the road to success. Successful investors clearly place on the paper where the planet they created before entering the investment process and where they will exit. So they can stay faithful to the strategy they had in their heads before investing. Because, with this plan, we have a completely concrete statement, not an abstract, like the plans in our minds. As a result, you will have a paper that you can touch physically in your hand and your rules and guidelines are written while your transaction is going on. The only thing you need to do while this process is going on is to apply these rules. This means that your head will focus on keeping track of your transactions comfortably.
If I follow these rules, I will succeed and I will increase the factors that are my beneficiary. If I give this plan to someone else and tell them to follow the plan I set, this person also has a chance to make money. So making your plan written gives you a real and concrete document.
However, a large number of new entrants to investment markets such as the stock market and forex are not yet in possession of investment plans. This causes many unsuccessful decisions and money loss. And the end result of these money losses is either to choose to stay away from the investment markets or to start from scratch and learn everything from scratch and the best. Whether you are investing in stocks or investing in foreign exchange or commodities if you wish. If you do not have a plan to be faithful to your investment process; Your success will never be long. Because all the elements mentioned above will fail.
Whether you are a new investor or an experienced investor, it is imperative that you create your own trading plan from the very beginning. We can more easily perceive how much this plan will work if we know that we make many decisions every day and our instincts often get us.
You should feel loyalty and trust in your plan. This trust will be the key to your success. But I’m not talking about over-reliance here. Remember that; Your investment transactions will hurt you in excess of everything.
What do You need to Watch While Making an Investment Plan or Strategie?
This is very important … When you are doing your plan, you will have to make a realistic plan that will serve you for a long time and you will follow the rules as long as your position is clear. However, the market may change, so the plan must be flexible, rules can be changed, and can be improved. Excessive trust in this issue can cause me to make a mistake. In the history of investment markets, many large investors have gone out of their plans because of excessive confidence and have lost their possessions and questioned the reasons for this. We always think that a successful investor should have a good plan and be loyal to this plan.