The Need To Learn Forex: Look Before You Bid
One of the biggest gripes I hear from traders is that their account has been blown and they are dumbfounded beyond all measure. Most of the time I just nod my head but deep down all I want to say is "Do you have any idea what you have signed on for here?" This is, after all business and in business there are no guarantees, there are only risks and rewards, but never guarantees. When most new traders go to learn forex they study charts, ask about systems and information pertaining to the currency they are investing in but they never ask the most important question of all:
Am I ready to lose, and if not how do I get there?
It seems like a defeatist attitude to greenhorns looking in but taking a loss with the outlook of "What can I take away from this" is more important than the money in your account. No, that is not a joke...it is a fact. Another fact is that you will lose, how much and how often are (more or less) at your discretion but it will happen. Minimizing that loss, learning from it, and realizing that if your heart is pounding during a trade you are either a gambler or you need to know what you are doing to a greater extent than you do now.
A seasoned trader will become excited, I'm not going to debate that but it is not the high point of their day. Ask any career forex trader and they will tell you flat out that getting as close to a sure thing as possible is preferable to the rush one receives by taking risks in the market. Is the market itself a risk? Well sure, but so is business, and there is no difference between a successful business person and a successful trader. If you apply due diligence, patience and learn as much about forex as possible you will find that while you won't be able to buy a Lamborghini you just might make that Subaru payment.
It is worth noting here that everyone is different, a lot of what I have said is common sense to many people but the funny thing is that even those with great common sense can often fail when not choosing to learn forex before making those big trades (or hell, trading at all). A demo account really is your best friend and should never be underestimated in its capacity to teach you not only where to place SL/TP limits but also to teach you where your own limits lie psychologically, please believe me when I say this is invaluable. Happy Trading!
Am I ready to lose, and if not how do I get there?
It seems like a defeatist attitude to greenhorns looking in but taking a loss with the outlook of "What can I take away from this" is more important than the money in your account. No, that is not a joke...it is a fact. Another fact is that you will lose, how much and how often are (more or less) at your discretion but it will happen. Minimizing that loss, learning from it, and realizing that if your heart is pounding during a trade you are either a gambler or you need to know what you are doing to a greater extent than you do now.
A seasoned trader will become excited, I'm not going to debate that but it is not the high point of their day. Ask any career forex trader and they will tell you flat out that getting as close to a sure thing as possible is preferable to the rush one receives by taking risks in the market. Is the market itself a risk? Well sure, but so is business, and there is no difference between a successful business person and a successful trader. If you apply due diligence, patience and learn as much about forex as possible you will find that while you won't be able to buy a Lamborghini you just might make that Subaru payment.
It is worth noting here that everyone is different, a lot of what I have said is common sense to many people but the funny thing is that even those with great common sense can often fail when not choosing to learn forex before making those big trades (or hell, trading at all). A demo account really is your best friend and should never be underestimated in its capacity to teach you not only where to place SL/TP limits but also to teach you where your own limits lie psychologically, please believe me when I say this is invaluable. Happy Trading!
