4. Trading Is Hard Work
Too many people come to Forex in search of easy profits. They believe that they will open several successful trades per week, and the market will bring them untold riches. And they will get it all right from the start as there have already been cases of "incredible success".
If you expect the same, you will be disappointed. Forex requires work. You will have to go through a number of time-consuming and work-intensive difficulties:
- Continuous training;
- Lots of strategies, techniques and trading tools to find and test;
- Hundreds of losing trades;
- The need to improve your skills and adapt to changing market conditions throughout your entire Forex career.
Sounds intimidating but this is the ugly truth. Don't despair though. Forex is truly capable of giving you the financial independence you dream of. Just be prepared to walk the path that any professional in any field goes through:
- Get knowledge
- Develop a skill
- Gain experience
This is a direct path to success in the financial market.
5. Fight the Disposition Effect
An experienced trader knows that a large part of success depends on two important skills:
- Allowing a successful trade to work out completely
- Ability to exit a losing trade on time
Too often, novice traders close a position as soon as they make some profit or wait for a market reversal on a losing trade when it most likely won't happen.
Such actions are called the disposition effect. It happens due to the inability of the beginner trader to cope with emotions. It is the fear of loss that forces you to make such financial decisions. If you want to be successful in Forex, you should learn to exit the market in the right moment.
6. Forex Provides Opportunities to Everyone
When a newbie comes up with a great trading idea, he or she doesn't want to share it for fear that someone might steal it and make profit on it. This might be true in many other fields where copyrights and patents apply but not in Forex. There is no shortage of opportunities in the foreign exchange market.
Forex traders often prefer to share their ideas with other market participants in order to get feedback. Advice from more experienced traders can moderate and improve your idea. Even if other traders want to use it, you will not lose anything from it. The daily turnover in the foreign exchange market exceeds 6 trillion US dollars. This opens up a wide range of possibilities for each of us on a daily basis.
And that is still not all. In the next article, I will give you three final tips to help you make your first steps in trading more successful and slightly less challenging. See you!