Have you ever felt like quitting? Traders often feel like quitting and most of them eventually do. But did you know that the best traders in the world are also the best quitters?  They do it frequently but it’s just a different type of quitting to the Punters who quit and never make any money.

From my experience there are essentially two types of people who trade Forex.  The first is a group I call the Punters and the second group is a group I call the Traders. The Punters are the ones who risk too much, are in a hurry and don’t know about the “GYM’ theory, and when they get to the Slump which happens a few months after they start, they quit.  The Traders on the other hand are those who understand the GYM theory, are prepared to learn how to master the art of trading and when they get to the Slump, power through it rather than quit and walk away. But the Traders are also great quitters, but not in the sense you may be thinking. They learn how to quit trades, not trading. They quit often, without hesitation and without reservation. And to be a great Trader you must know when to become a great quitter.

Over the last 5 years I have been trading with thousands of traders from all over the world, sharing a front row seat every day through a series of online trading rooms, and being invited to speak at trading seminars and trade shows.  What I have learned is the real truth as to why Punters blow up, but also the real truth about how Traders make fortunes. I have figured out what causes Punters to quit and why they lose and how you can become a Trader and potentially make a fortune.

The rewards at the top for the Traders who make it through the Slump are enormous and just like any field, for those who make it, there is only room at the top for a small few.

Is it hard to reach the top in Forex and become a great Trader? No, because 95% of Punters will quit and if you understand the GYM theory that I am about to teach you there is plenty of room for you at the top.  If you don’t use what I am about to teach you in this report, you will become a Punter and you will quit before you get to the top.

Before I explain the GYM theory let me explain to you what the usual pattern is for people who start Forex trading. First they attend a seminar, see an advert, talk to a friend and are enticed into the Forex world by the lure of great profits in a short period of time. Which incidentally is all very possible? They jump head long into Forex, and open an account. Forex trading is fun to begin with, you’re learning something new that has a potential to make you a fortune, you embrace the rapid learning curve and it keeps you going for the first month or so. Then you hit the Slump, which is the first of a series of losing streaks that start to drain your trading account. The Slump is basically the slog between starting and mastering Forex and making big money. Mastering the Slump is the difference between beginners luck and extraordinary success. You must know how to prepare and get through the Slump.

At this point the Punter starts to surf the internet, buying trading books and joining chat rooms and forums looking for a better trading system, one that works and can make them money. They are in search of the Holy Grail. All the while they continue to lose and are now so emotionally drained that they just can’t give up until they find the Holy Grail of trading signals. They are hopelessly addicted too, they can’t stop themselves, they are out of control, losing consistently, accountable to nobody (yet) and cannot quit. They are in the Slump and the Slump is getting bigger. Quitting however is only around the corner.

It’s often the case that it’s the wealthy people with the most money that when they get to the Slump think they can short cut the system and compromise on learning the skill of trading and how to become a real Trader. Instead they never graduate from being a Punter and don’t know when to quit trades, lose big and give up. Whether it’s the wealthy, middle class or poor, the example I gave above is a classic Punter.

Eventually the Slump gets so big that the Punter simply runs out of money and energy and quits. This sad story is all too common in Forex trading and if only the Punter had the foresight to quit, instead of putting their pride in front of their money. The Slump can be painful for a Punter so it’s easier to quit than to keep going.

One of the stupidest things you can do is to start Forex trading, spend a lot of time and money, get to the Slump and then give up in the middle of the Slump.

The best Traders in the world don’t compromise, they don’t take short cuts and they understand the GYM and Slump theory early. Punters who compromise and take short cuts are in the majority in Forex trading, but are not amongst the Traders in the winner’s circle. You see when you reach the Slump and quit, you are creating scarcity for the Traders who are patiently following the plan and risking little and just persisting with small amounts of money, that soon turn into much larger sums.

It’s easy to be a Punter but it’s easier to be a Trader. So listen up, I am about to tell you how!

What I want to teach you right now is how to seek out the Slump, lean into it and be prepared for when it comes. The Slumps don’t last long when you’ve been to the GYM first and you persist and chip away at your trading. In fact the Slump and the GYM theory is the secret to your success.  The Slump gives you the chance to pull ahead of the Punters and the GYM theory ensures you can always continue to build on your success.

Do you remember when the head coach once said, “While you are out on the track training in the dead of winter, snow all around, freezing cold and wishing you were somewhere warm, your competition is curled up in bed?  Their muscles may be warm but your muscles are getting stronger and next time you meet, the odds are you will win.”  Trading is no different for those who reach the top. In trading you get what you deserve, it’s that straight forward.  But the good news is you don’t need to train for trading in the snow or in the dead of winter.  Being a Trader is easier and less stressful than being a Punter, I guarantee it.

When you get to the Slump people often diversify, they go walkabout. They start to surf the internet, visit book stores and newsstands. They abandon what system they had and go in search of a new one, not realising the system they had was not at fault.  This is the beginning of the end for the Punter, as they spiral out of control and into a tail spin.

To become a great Trader you need to understand the story of the Punter first.

The Punter is someone who never has a foundation for success, and when a few losing trades start to come their way come crashing down like a pack of cards.

Punters don’t admit to themselves fully what they are doing isn’t working and quit.  Rather their pride gets in the way and they blow everything trying to prove they are right. What a waste. It’s so frustrating to me that the solution is so simple but yet the Punter can’t seem to see it.

The Punter quits trading and blames everyone but themselves, and moves onto the next thing, only to get to the Slump and quit again. And the process goes on until they eventually give up trying anything new altogether and settle for being just average. In reality they have settled for being a loser.  Its human nature to quit when it hurts, but it’s the exact point that when it starts to hurt that you recognise you are in the Slump and it’s time to grit your teeth and become a Trader and not a Punter.

If the journey you started was worth doing, then getting to the Slump and quitting is a complete waste of time. Punters attempt to trade many different markets, but never make any profits. If you are not prepared to make it through the Slump then don’t start trading, period!

Punters focus on the short term, rather than the long term and quit when the going gets hard in the Slump. In a moment I am going to show you how to prepare for the Slump and lean into the Slump. Once you know this, it is not good enough to say you are not good enough. You are good enough; the question is will you quit when you get to the Slump or will you prepare for it now and say “bring it on”?

Does the Slump happen only once? No it happens frequently and that’s all the more reason why you need to prepare for it right now. But when you are prepared for it, they Slumps are smaller and don’t last as long.

To get through the Slump you need to know it IS going to happen and prepare for it. To prepare for the Slump you need to understand and learn the GYM theory first.

Have you ever paper traded? 95% or more of paper traders make money. Why? It’s simple; when you are paper trading there is no fear of loss. You simply follow the system and place the trade and you trade freely without hesitation and reservation, just like a seasoned professional Trader. But it is when you switch to real money that the fear of loss grips you and you begin to think and act differently. You open your account with more money than you should. Hey why not, you just made a fortune in paper right? And you begin to trade more money than you should, you risk more than you should and your transition from paper trader to Punter is nearly complete. You feel it is not your fault. The system doesn’t work the same anymore, it all looks and feels different and thus you begin to lose money.

The key to avoiding this trap is to go to the GYM from day one.

Let me give you an example? Let’s assume you want to become a body builder and you’ve joined the local gym. What would happen if you went to the gym and lifted just the bar and never actually lifted 100kg, but you just imagined you did every time? The answer is you would never lift 100kg and you wouldn’t get anywhere, your muscles would not grow? This is the equivalent to paper trading, you don’t get anywhere! You never sweat, you never get put under pressure, you never get to feel the rush and learn to deal with the pressure of the real deal and your trading account never grows.

Picture this.  A Punter walks into the gym and tries to lift 100kg but has never even lifted 20kg before. What do you think happens? They might be able to bench press 1 or 2 reps but they can’t hold the weight and handle the pressure of the 100kg bar and collapse in a heap.

Are you getting my drift yet?

Now let me tell you what the Trader does. He enters the gym and has a goal to lift 100kg’s in weight and win the state championship. He prepares himself first by getting a coach and joins a winning weight lifting team that can show him how professional weightlifters do it. He then learns everything he can about the skill of lifting weights and the techniques required to get the best out of himself. (The equivalent for the Trader is learning about money management not trading systems) He then starts to lift real weight from day one and steadily over time builds up his muscle, steadily increasing the weight as he goes. He never risks injury or failure, but he knows as the weight increases he must stay true to what his coach has taught him and hold his technique and style. He does this over 6 months and rapidly increases his body mass, and in time becomes a professional weightlifter.

Here is the same story for a successful Trader.

The Trader prepares himself by joining a winning trading team with experience to show him the way. He learns everything he can about money management and only risk a maximum of 2% on all his trades and learn how to calculate the risk across the various currency pairs. He opens an account with $1000 and trades within his risk tolerance with micro lots steadily increasing his account size by being able to take every trade that meets the plan and staying with the plan till the profit or stop is hit. He never deviates from the plan unless the trading room director advises too and over time he learns the trade set ups and techniques for himself.

I am sure you have heard a phrase similar to this one before.  A trader can attempt to trade 10 different trade setups and never make a dollar, or they can chose to master 1 trade set up and make a fortune.

Becoming a Trader and going to the gym doesn’t need to be painful, in fact it can be outrageously enjoyable and give you pleasure and opportunity you never dreamed possible.

While you are at the gym you will also learn that strategic quitting is exactly what successful traders train for, they focus every day on when to quit before it gets too painful, but they also know how to push through.

So here is what you need to do to become a Trader and not a Punter.

1. Join a winning Trading team that knows how to quit and quit often.
2. Make sure you go to the gym and learn to trade real money from day one with micro lots so you are actually lifting real weights. Don’t paper trade; it will likely get you nowhere. And being wealthy or having money doesn’t give you a license to short cut the system and lift more weights.
3. To overcome the Slump and reach the long term success that you desire you need to be prepared for it and be able to trade through it. The only way you will be able to trade through it is by building up your trading muscle steadily. When the Slump starts to come you can lean into it with confidence, continuing to step up to your trades with conviction and belief, instead of living in hope and anxiety like a Punter who risks too much and is in too much of a hurry.
4. Don’t go walkabout when the Slump starts to come. Traders hang in there and focus on one thing and don’t diversify at the first sight of failure. Punters jump ship at the first sight of failure and begin the quest for the Holy Grail that does not exist.
5. Don’t be afraid to quit a trade when you learn to see it is no longer working. You won’t have this skill to start with and you will need to reply on your trading team. At LTG GoldRock we have quit dozens of trades quickly and without hesitation and we don’t look back.

The great news is that the market is full of Punters who are giving their money away to the Traders who know how to prepare at the gym and overcome the Slumps.

The question is, will I see you at the gym?

Tags: Trading success