GreedGreed is probably one of the biggest dangers to successful forex trading.The possibility of the big winning trade that will make them rich is always
looming in the mind of the novice trader and experienced trader alike. Many
people look at forex trading as a get rich quick scheme rather than the
legitimate business that it is. They have unrealistic expectations. There will be
times in your trading career that the lure of the big payoff will tempt you. You
will have your strategy in place, your trade set up, then a greed attack will set
in clouding your judgement. If you want to be a successful forex trader you must
learn to overcome greed and not seek the "home runs" but learn to follow a
strategy that over time will regularly bring you small but consistent wins and
growth of your account.
Fear Because of fear, people look for the perfect forex trading system that
will guarantee the most success with the least amount of risk.Fear will cause a
trader to think irrationally. His judgement will be clouded. It will cause him
to:Take trades when he shouldn'tNot taking ones that he shouldExiting too early or at the wrong time when the market is going against him.
What are the causes of this fear.
1) Fear of the unknown. Specifially, fear of not knowing whether a trade will
work out or not. What is the remedy?Having an effective forex trading strategy you will have confidence that in the
long run it will work out. You may have a few losses but you know that you will
have more wins than losses resulting in an increase in your trading account.
2) The fact that you are risking your own money.An old horse trader once said to me that: You learn the most about buying and
selling when you start trading with your own money. The same is true with forex
trading. When you are trading with a demo account which allows you to trade in
real time but with fake money,you don't think the same way that you do when you
begin to trade with real money that is yours.
How do you overcome the fear of losing your own money. Simple, only trade with
money that you can afford to lose. In other words, trade with money that if you
lost it would make no difference at all to your current financial life. That is
why it may be best to start with a mini account that allows you to start trading
with as little as $300.00. There are even brokers who offer "micro accounts" that
allow you to start with $25.00.
Lack of patience.Along with greed and fear,lacking patience will also sabotage any success you may
have as a trader. Why is patience required? Because forex trading is boring. It
is not glamorous or exciting. It requires patience to wait for the right trade to
set up. The problem is that alot of traders are anxious to make money now. They
then force a trade when they shouldn't in a effort to outsmart the market. But
the market will go its own way regardless of how smart you are.
The bottom line is: If you want to be successful in forex trading, you must be
patient, stick to a certain strategy, practice good money management,and banish
greed and fear. If you do this you will have long term success as a forex trader.
To see a strategy that is simple and gives good long term results see Avi
Frister's course, Forex Trading Machine.
looming in the mind of the novice trader and experienced trader alike. Many
people look at forex trading as a get rich quick scheme rather than the
legitimate business that it is. They have unrealistic expectations. There will be
times in your trading career that the lure of the big payoff will tempt you. You
will have your strategy in place, your trade set up, then a greed attack will set
in clouding your judgement. If you want to be a successful forex trader you must
learn to overcome greed and not seek the "home runs" but learn to follow a
strategy that over time will regularly bring you small but consistent wins and
growth of your account.
Fear Because of fear, people look for the perfect forex trading system that
will guarantee the most success with the least amount of risk.Fear will cause a
trader to think irrationally. His judgement will be clouded. It will cause him
to:Take trades when he shouldn'tNot taking ones that he shouldExiting too early or at the wrong time when the market is going against him.
What are the causes of this fear.
1) Fear of the unknown. Specifially, fear of not knowing whether a trade will
work out or not. What is the remedy?Having an effective forex trading strategy you will have confidence that in the
long run it will work out. You may have a few losses but you know that you will
have more wins than losses resulting in an increase in your trading account.
2) The fact that you are risking your own money.An old horse trader once said to me that: You learn the most about buying and
selling when you start trading with your own money. The same is true with forex
trading. When you are trading with a demo account which allows you to trade in
real time but with fake money,you don't think the same way that you do when you
begin to trade with real money that is yours.
How do you overcome the fear of losing your own money. Simple, only trade with
money that you can afford to lose. In other words, trade with money that if you
lost it would make no difference at all to your current financial life. That is
why it may be best to start with a mini account that allows you to start trading
with as little as $300.00. There are even brokers who offer "micro accounts" that
allow you to start with $25.00.
Lack of patience.Along with greed and fear,lacking patience will also sabotage any success you may
have as a trader. Why is patience required? Because forex trading is boring. It
is not glamorous or exciting. It requires patience to wait for the right trade to
set up. The problem is that alot of traders are anxious to make money now. They
then force a trade when they shouldn't in a effort to outsmart the market. But
the market will go its own way regardless of how smart you are.
The bottom line is: If you want to be successful in forex trading, you must be
patient, stick to a certain strategy, practice good money management,and banish
greed and fear. If you do this you will have long term success as a forex trader.
To see a strategy that is simple and gives good long term results see Avi
Frister's course, Forex Trading Machine.
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