Forex trading websites, blogs, and forums create a lot of hype by focusing mainly on the positive aspects of Forex trading. Not many brokers speak about failures. As a matter of fact, thousands of traders lose money everyday. The main reason for that is that they do not understand what it takes to become a successful trader. There are no shortcuts for success!
Like any other financial sector, brokers too desire to add more and more members to their client list. They get their commission on each trade you place. Then it is up to you to get your trade speculations right.
Firstly, you need to educate yourself and understand the basics, like learning to read the candlestick charts, market trends, oscillators, support, resistance, stop loss, etc. Most traders fail simply because they try to skip this part.
It might take you a couple of weeks or even a month to learn about the basics of Forex trading, but you cannot skip it. Simple as that!
Trading on live accounts without proper tutoring is as bad as walking through a minefield, without the knowledge of where the mines are placed.
You join some good trading course, but then everything must be within a certain reason. Paying high monthly charges for signal subscription services is a waste of money. It will be more useful to you, if they can just teach you spot signals for a one-time small fee. There is a distinction between helping people to learn trade for a low one-time charge, and exploiting them repeatedly.
Be realistic – Never nurture unreasonable hopes and expectations from Forex trading. When your hopes don’t relate with reality, you are bound to experience financial and emotional pain.
Always remember, there are some brokers who give you false view about trading, just to lure you to register for an account with them. However, they too get blacklisted soon, and are forced to face the law.
Overconfidence – New traders are mostly overconfident due to lack of knowledge, but that can be costly. Some of the Forex platforms prey on false confidence of new traders. Beginners get overconfident after some winning trades, and start doing crazy things like not using stop losses, or risking more leverage, etc.
The Magic Formula Can Be Disappointing – Lots of money can be made in Forex, but never forget that you could lose a lot of money too.
Today, you will come across phrases like, ‘holy grail’, ‘next big thing’ or ‘no system, strategy’ that guarantee to make you rich in a few days. To put it simply, those are all a bunch of nonsense. If you can’t read or interpret a chart, you are headed towards your doom, no matter how good your system or the Next Big Tactic is.
Ego and madness – You may have an experience of several years in trading, but are still struggling. You follow the same procedure repeatedly and always lose, but never try to change your strategy. It can be termed as ‘trading addiction’.
Such arrogant nature will never allow you to succeed. Such traders feel safe, and fear to make efforts to change. In trading, you learn through a series of successes and failures. You are always learning and developing your skills as a trader. If you remain stagnant and make the same mistakes continuously, then it is a signal to change.
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