Over the years, the Forex market has become hugely interesting to so many people. Why is this so? It is because more people are beginning to perceive it to be extremely potentially profitable. And indeed, it is. At Technical Trading Signals, we are committed to even raising more awareness about that.
However, the rising interest that the market continues to attract seems to be sparing it the need to actually prove itself. Hence, you should really be concerned and ask: can I really make money in the Forex market? If I can, then why are so many still failing in it? Why, according to reports, do the majority of Forex traders still lose?
The reason is not implausible. Of course, Forex trading is a great way of making money. But it is not that simple. Sadly, most of those individuals that fail to make money doing it, fail because they think it is. Another reason is that many of them are caught up in the cycle of doom. In this article, you will learn the three things that you should never do if you are serious about making money Trading Forex.
Aspiring Forex traders are often brimming over with excitement. They cannot wait to take their first trade. The prospect of just sitting in the comfort of their rooms and earning a living is too irresistible to ignore. So, they look for money by all means and create brokerage accounts. Some even fund their accounts with debt.
With so much gusto, eventually, they take their first trades. While some of them can have beginner's luck, most lose their first trades, and the next, and the next. Then, they start realizing that trading Forex is not as easy as they have thought. This pattern has become a norm with so many Forex traders, especially beginners. But why is it so?
It is this: because of their early enthusiasm, they ditch the most critical phase of every trading career – the learning phase. A similarity can be drawn between a Forex trader and a dancer. Dancing is not an activity you just wake up one day to do and start doing. Of course, anyone can dance, but not everyone can dance well. Trading Forex is exactly like that, too.
That is, if you want to become a good dancer, you have to be willing to practice. Ditto if you want to become a profitable Forex trader. The best place to start, for an aspiring Forex trader, is the demo account. The demo account offers a perfect, risk-free learning environment. So, before you go into live trading, you should first practice with it.
Next, having adequately practiced on a demo account, you are now thinking of moving on to a live one. That is not bad. Progress should be the ultimate goal of every human in their chosen endeavor. In fact, staying too long on demo trading can be counterproductive. However, you should be aware that this transition will come with its challenges.
First, there is the challenge of devising a strategy that will work fine in the market. It is important you have one. If you talk to most failing or failed Forex traders out there, you will most likely find the lack of a coherent strategy as a possible reason for their misery. To develop a strategy that works, you will need professional advice or dedicated study and research yourself.
What is important is that you should not approach the Forex market without a strategy. You are a trader, not a gambler.
Now, you have got a carefully-planned, well-thought-out strategy for approaching the Forex market. You deploy it, put some money on the line and things are going pretty well. In the beginning, the strategy appears to be perfectly effective. You are extremely happy and you go around telling your friends, “I am going to be rich!”
Then, sadly, the worst strikes. The strategy that has been making you money does not seem to work again. In fact, it is beginning to cost you a lot. So, you are starting to doubt it. You go to other traders who you think know more than you do and they advise you tweak. And tweak it you do. Then, you start making money with it again.
Little do you know that with that, you have already initiated the Cycle of Doom. The Cycle of Doom is a series of events starting with a profitable strategy and ending with a total discard of it due to intermittent losses. It can be resolved, however, if you understand that there is no sure strategy and every strategy will fail sometimes.
So, what you should be keen about is not whether your strategy loses sometimes, but how often it wins. If it wins more, you are good. Otherwise, you should subscribe to our Trading Signals.
There you have them, those three things that you should be wary of if you are really serious about making money trading Forex. To minimize the risks stemming from those things, you should use top trading signals. That is why we are here.