Forex Trading Basics - What You Have To Be Aware Of


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 scheme.  

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 business.

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.




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