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Trade
Five things that novice traders understand wrong
Trading in Forex requires the trader's hard work, dedication, free time, huge will power, patience and many other qualities, but very often new traders think they will be able to instantly enter the game and immediately get a profit.
Will talk about those things that "young" traders are often perceived wrong:
They want to obtain huge profits from the first year of trading
Beginners usually enter the markets are full of confidence and optimism, which in itself is wonderful. But overconfidence can lead to failures and disappointments, and therefore it is better to remain realistic about what income is achievable in reality.
If You belong to the camp of those who seek to income at 1% daily and above, You should quickly back to reality. 1% a day, such income would have made You richer than Warren Buffett, and for a fairly short period of time. Try to reach at least 1% per month, and then maybe You'll be able to achieve your goal faster.
They take too much risk because they believe they are right
Another problem faced by beginners, is that they are usually faced with risks in the trading process and therefore do not have the slightest idea about proper risk management. They often open a trade, which are so confident that they have no problem to put on a win big enough or even to risk all your Deposit. This type of behavior always leads to the fact that the trader could face bankruptcy because of unexpected events happen in the market more often than it seems to most beginners.
They do not separate the trading capital from ordinary expenses
Often novice traders boldly "dive" into the market the amount is less than$ 1,000, and trying to vystroit your trading tactics using the method of trial and error - that is to say, shooting from a gun on sparrows. It is fundamentally wrong for two reasons.
First, trading capital must be separated from Your current account – this will facilitate and optimize the management of risk and cash. Not a good idea – "to climb" in Your trading capital to pay Your everyday living expenses.
Second, the method of trial and error - the worst way to start trading in the market, its better to spend time learning the basics and nuances of the trade.
They believe that to trade is simple
If only some of the newcomers knew how difficult that is actually, they probably do not have to participate in trade. Most often it is those who think that trading is easy are usually among the worst traders.
Novice traders all too often believe that buying low and sell high – that's all they have to do. They should also consider the cost of the trading process and understand what they're up against very strong competition.
A desire to profit, is able to provide a comfortable existence
Novice traders often think Forex trading is the only way out is capable of instantly solving all their problems related to dissatisfaction with the workplace or professional career. However, attempts at once and to devote himself entirely to Forex trading, working this full time, unreasonable and irresponsible. As soon as You have to pay your current expenses, relying only on income from trade, the degree of Your emotional state will inevitably rise, and suddenly the whole process of trading becomes much harder.
Traders should move to its goal very slowly and carefully, and thus they'll keep their money, well-being and health.
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| Category: Forex | Added by: (30.10.2017)
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| Views: 286
| Rating: 0.0/0 |
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