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How to avoid disappointments, working on the foreign exchange market
There are no short cuts to achieving profitability in trading in the Forex market. Even if some of us have from birth the best abilities or character, more suitable for trading, but it takes years of experience and to hone winning skills.
Again, a ready recipe for success in the currency market there, but on the way encountered many disappointments, and unfortunately, many traders experience them at the beginning of their trading career.
The inevitable disappointment
Most often the frustration comes to a trader when he wins a significant victory, or even a few consecutive wins. This causes the trader unjustified self-confidence in relation to their trading abilities.
After several successfully completed transactions, usually within a relatively short period of time, a trader can imagine that he has some kind of innate gift. He may decide that he has a natural talent or inclination to trade. Soon, he would take it that all his victories by his own talents and will continue for a very long time - days, weeks and even months.
But the problem is that very often a big fortune in Forex trading happen accidentally, and the subsequent disappointment is inevitable. Undoubtedly, in the long term, the random factor of luck devalued, but for a short initial interval of luck will always influence Your trading results. In this regard, collision of the trader from problems can be very stressful. Sometimes You will not even be able to understand make money on the trade with his analysis or You just got lucky. The same, however, can be attributed to unsuccessful trades.
What to do?
If You are new on the market, however You win, You may feel frustrated. In other words, Your victory is just a series of happy coincidences and they have nothing to do with Your real trading skills.
It is important to understand that Your first victory was won largely by luck, and that You should continue your trade with meaning, study analysis and exposure. More importantly, You should refrain from increasing the size of the trades until You're absolutely sure that Your "good" period is completed and You do not rely on blind fortune, and acquired their trading abilities.
It's possible that You really are a born trader, but even in this case, You should be extremely careful and, ultimately, it is this caution and will bring You real dividends.
There is one good rule of thumb - if You won a great victory, but can not afford arguments to explain how this happened, it is likely that You are moving fast on the path to disappointment.
Do not rush, longer and carefully analyze your trades and try to "ride the wave".
|Category: Forex | Added by: (29.10.2017)