I'm always astounded to hear about how many new
traders start trading the forex market. A large majority of them never take the time to learn
the forex trading basics.
Many new traders feel as if they are entering a casino in
Vegas. Instead of understanding both the art and science of trading.
For example, many new traders have incredibly
unrealistic expectations. They think that its some kind of get rich quick
I think a lot of it has to do with the fact that
you see so many forex products being advertised as "the holy grail". Let's put an
end to that once and for all.
Forex trading is not a get rich quick scheme.
You will not be a millionaire overnight. So start treating as if it was a
business. You'll progress faster as a trader.
Also, another problem that many traders have is that
they don't understand the idea of money management. If you don't know how to trade your
leverage, then you should definitely not be involved in forex.
So many traders have completely destroyed their
accounts just because they were so overleveraged. Again, this is part of the gambling
mentality that many newbies have. They think that every trade has to take them to a new tax
bracket. When they get that first big loss they are so completely demoralized that they
never quite recover.
Lastly, many traders never get the proper old school forex trading education.
They think that trading doesn't require an
education. They can just trade using their "gut". That's not the way it works. If
you want success, get yourself educated, otherwise you will not last long in this
There are tons of traders who pull in 6 or 7 figures
a year, which is equivalent to what a lot of doctors pull in. Do you really think there are
any people who became a doctor without getting educated? Of course not! It's no
different in trading.