Things
That Every Beginner Traders Should Know Before They Start Trading in Forex
It's a fact that forex trading became a highly preferable
investment method in the last decade. Combined with the internet as a global
24/7 network forex is reachable to everyone. I'll not give you about the basic
explanation of forex trading in this article. I'm sure that i don't have to
tell what forex trading is. People which familiar or have an interest in an
investment know forex already. Don't they?
Forex trading is
basically just an investment
As any other investment, there are always benefits and risks
beyond forex trading. Many people/organization, especially forex brokers, its
affiliate and those who earn their income by providing some forex related
services says that forex trading have so much advantages compared to other
investments; Forex is easy, with its non-stop 24 hours market, its wide range
adjustable leverage, its automated trading platform, its offered better
opportunity for income resource, and many more -- you name it as much as you
want to...
Blinded by its 'beautiful dream imagination', many
small/personal traders, especially for the new ones forgot that forex trading
is basically still an investment program. Traders should never have a thought
that forex trading is an income resource.
Common Beginner Traders
Scenario
Beginner forex traders are usually follow the trend of forex
trading without preparing and providing them self with an adequate
understanding about what's inside forex trading. Their common scenarios are:
1. Know about forex trading
2. Have an interest in forex trading
3. Looking for an easy and profitable forex services
(Usually by looking for some services with less margin, high
leverage, automated trading platform, and less risk? - which is too good to be
true)
4. Start gambling with their trades
5. Unable to achieve profits as what their imagination
6. Repeating scenarios 3, 4 and 5
7. Repeating scenarios 3, 4 and 5 again... and again...
8. Realizing that they are losing too much or that their
imagination along these days/weeks/months is wrong (i doubt that it would reach
years)
9. Give up and quit their trading for good.
Where did they do wrong in above scenario? Is that wrong to
always searching for a better service to back up our trade? In my point of
view, there are no mistakes in that scenario at all. But it's just incomplete,
and that's the most dangerous mistakes made by most beginner traders.
How to Overcome Traders
Mistakes and Begin to Make Some Profits in Forex
The facts are, there are just 5% of forex traders which
successes with their trading. To become as they are, we should insert step 2.5
in scenario above. This step will simplify above scenarios by eliminating the
fourth and eighth and changing ninth step became TRADERS GOAL ACHIEVED.
2.5 Preparing yourself with a solid basic knowledge of forex
trading
- Know about the fundamental of forex trading
- Learn about what and how forex market really is
- Train yourself to getting familiar with the technical analysis
in forex trading
- Learn how psychological factor affecting in the trading and
define our best trading personality
- Be aware in our risk and money management
- Develop your most effective unique trading system based on
your knowledge.
We should keep in mind deeply that forex trading is an
investment. There is no way that we could be a master in some investment that
we've just dive in to for days or weeks. We have to do it by the right way, and
don't forget to eliminate your rush in the goal achievement. You will surely find
your best trading system that suits you, I guarantee that. But it would cost
you some time for several trial and error system testing while you developing
your experience in forex trading.
By using an analogical approach as a computer, forex broker is
the application programs and operating system. We do need them to make sure
that all we need its done, served and executed properly. But, how good the
computerization execution speed and its performance are depends on the basic
computer specification, which analogically as you.
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