You may think you know what a CFD, a currency pair, or an option is, but you probably don't know anywhere near as much as you should. For example, trading a CFD and an option using the same outlay can result in two completely different scenarios; the CFD can take out your initial outlay, plus more sometimes resulting in a margin call (if you know what one of these are).

If you have no idea what it is you want from trading; then the markets will give you just that, nothing! Over 90% of traders fail to reach any success and a large part of this is because traders refuse to set any sort of goal or objective. Floating aimlessly, they are easy targets for the trap that is the financial markets.

If you asked 100 struggling traders what it is they want from the markets the general answer is 'I want to make money'.

How many times have you set your self a goal to achieve something you've never achieved before; you've been highly motivated and really excited at first but in short time, you find you give up or quit? There is a small almond shaped organ in your brain called the Amygdala, which must share some of the blame.

The Amygdala is a small almond shaped set of nuclei that sits in the brain.

Every air conditioner, oven, heater etc has a built in thermostat to keep the temperature within a constant range for optimum performance. Our brain has a very similar system called the psycho-cybernetic mechanism, and its job is to keep us operating within a certain behavioural range.

If we think of the air conditioner, the thermostat inside has a range of temperatures that it uses as its guide or reference when keeping the room at a desired temperature.

Trying to make money from the markets even armed with a set of rules is likely to be met with failure. Over 90% of traders fail to make consistent money in the markets because their expectations are beyond their skill levels and their resources. Ill-equipped they are easy prey for the trap that is the financial markets.

Skills include knowledge and knowledge starts with the basics, but it doesn't end there.

Some traders will go through system after system, teacher after teacher, wasting thousands of dollars not only in useless systems but in lost trades before they realize they've been approaching the markets from the wrong standpoint because they've been trying to trade the wrong type of system.

The two types of traders are the mechanical type trader and the discretionary type trader.

Have you ever wondered how some people seem to find all the opportunities, they have the Midas touch, everything they touch seems to turn to gold, they have the perfect partner and great health? Why is this? What are they doing that everyone else isn't.

For one, they act, but that's half the process; the other half of the process is that they are able to see opportunities where others can't, and this is thanks to an organ in our brain called the Reticular Formation.

Over 90% of traders fail to reach any success simply because they are not equipped for success, especially in key components such as money management and emotional control. This is true for most things in the civilized world. We are programmed for failure and as such as easy prey for the trap that is the financial markets.

If you are bad with money, then guess what, trading wont fix that.