Every trader wants to conquer the world of trading and sit on the throne of Forex!
As much as it is advisable to learn all the basics of Forex trading, you need to be able to filter and not over-saturate your brain with all the information out there. Too much information can be detrimental to success in forex trading.
There are a few factors which can bewitch you into thinking they are imperative to mastering Forex trading. In facts, they should be avoided as much as possible.
The most reliable weapon to influence the trader’s mind.
If the news is negative so is the trader’s mind, if the report is positive so will be the trader’s mind. A positive mind will always perform better, as ‘positives’ reflects in a trader’s strategy and investing decisions.
Don’t forget that mainstream media is produced by people that are not traders nor investors; they are just journalists creating content to make the news.
News trading can bring substantial profits to traders, but it is a challenging strategy to master, requiring ample experience and knowledge. Those with less knowledge bound to make many mistakes when ‘trading the news’ resulting in substantial losses.
Being hooked to the screen 24/7 turns you into a ‘day trading gambler’ even if you don’t want it.
Imagine staring at 20 different charts a day, following the higher and lower time frames. After which trying to decide whether to scalp ten pips here or 5 pips there which lead to an addictive trading behaviour which results in the spontaneous placement of orders and trades, hoping that the next trade will bring profit and depend on luck! This will be disastrous and is indicative of the gambling behaviour we all spurn.
With so many trading strategies available, so many ideas and philosophies, and educational webinars about Forex trading around, a novice trader are spoilt for choice, but too much choice can be confusing and misleading.
A novice trader should not accumulate trading information from different sources and bundle them all together in his head, as they will lose all direction and defeat the object. A novice trader should choose a source carefully and only when that subject has been mastered should he leap into a new subject.
The force behind Forex Greed is the hunger of trading; the reason why people involve in the Forex markets.
Even if a trader ventures into the world of Forex trading for the sake of curiosity or just because it is fashionable, trading is completely capable of bringing out the greedy side in all of us.
We are all capable of promising ourselves that ‘when I make so much etc., I will manage my risk better’. But that is never the case! We are human, and we are guilty of greed, so suddenly we see ourselves in the mindset of risking more than we can afford to lose, and that is where the danger begins. Human lose control, and the dominant mentality of trading overwhelms us.
Greed should never be the reason why you want to discover Forex trading; it should be another reason, such as curiosity or merely an interest in this industry.
A Final Word
A trader needs to trust himself and his trading strategy. He needs to be confident with every order he places. He needs to trust his judgment when making trading decisions, and he needs to exert discipline in his strategy. Other traders ‘opinions or stories should not count.
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