The main disadvantages of Forex Trader
Why is it so very few traders succeed in the Forex environment, while the vast majority of them fail event? some things that will put you one step ahead and certainly can change the odds in your favor although no firm answer there.
The main objective of this article is to guide you through some important aspects of Forex trading. But in a different way, instead of telling them what to do or presenting the best way to do something, he tells you that you should avoid. Sometimes it is better to identify the major mistakes of some discipline and isolate them to have the best results when reaching a certain level of development.
The search for the Holy Grail
Many traders spend years and years trying to find the Holy Grail of trading. This indicator or set of indicators magic, known only to a few operators, which will make them rich in a very short period of time.
Fact: Well, there is no magic indicator or set of indicators that will make you rich in a short time. This is why the market is changed, every moment is unique. All business systems Forex errors occasionally occur. Our job here is to find a Forex trading system that fits our personality as traders, otherwise the operator will find it difficult to follow.
Looking for Easy Money
Unfortunately most traders are attracted to the Forex market for this reason. This is mainly because of the publicity showing or rather trying to show how easy it is to operate and make money in the Forex market.
Fact: Yes, it is very easy to trade, anyone can do it. It is as hard as pressing a button. But the second part is not so easy. It is difficult to make money or achieve consistent and profitable results. much education, patience, discipline, commitment is required and you can continue the list until infinity. In short, it is possible to have consistent profitable results, but definitely not easy.
Some traders are attracted to the Forex market or any other financial market because they believe that being a trader is exciting.
Fact: Yes, it is very exciting to trade the Forex market. But if this is the main reason why it is still trading in the Forex market, sooner or later you discover a more expensive adventure I've ever met. Do some thought into this.
No Money Management Practice
Most traders forget about this important aspect of the negotiation. They think that you should not use money management to achieve consistent and profitable results. totally forget the aspect of risk in trading.
Fact: Money management allows your profits to increase geometrically, but also limits your risk on each individual operation. Money management tells you how much to risk on each trade. It is a must for those who want to achieve their business goals. Using money management ensures that you will be able to operate tomorrow, next week, month and the following years.
No Psychologically they Tuned
This is one of the most underrated issues when it comes to trading. One of the most important principles of financial markets is that the price of each instrument is based on the perception of each individual participant "the crowd". In other words, the price of each instrument is determined by fear, greed, ego and hope of all traders.
Fact: Being aware of all psychological issues that affect the decisions made by operators certainly puts the odds in your favor.
The lack of education
Education is the foundation of knowledge in all disciplines. As lawyers and doctors require several years of college until they get their degree, Forex traders also require long years of study. It is better to have someone with experience who can guide you through your trading, since some data could steer you in the wrong way.
Fact: The market teaches us valuable lessons on every single trade. The process of education for a Forex trader can continue forever. That's right, we never stop learning. We must be humble with the markets and our knowledge; otherwise the market will prove us wrong.
These are some of the most important barriers every trader faces when trying to trade successfully.
Forex Trading successfully is not an easy task, it requires much hard work to do well, but with the right education, you will approach your business objectives.