So many new traders just jump into the
markets haphazardly. They think that "anybody" can be successful. This is actually
true. The problem is most people don't really look into the forex
1) Don't Fall for the forex trading
robots. This is without question the biggest forex trading danger there
is. It's dangerous because it is so enticing to new traders.
This is like kryptonite to logic. Traders hear about trading without doing any of the actual work, and they are immediately interested. Who
wouldn't want to let a piece of trading software just buy and sell currencies all day
while you're laying out on the beach.
The problem with this is that it's incredibly
unrealistic. If trading were that simple, everybody would be rich.
2) Falling for the bells and
whistles. When you are so new to trading, it's really easy to fall for all the gadgets
(like trading robots). New traders see a commercial or an internet ad for the latest and shiniest
trading platform. The glossy images are really impressive, but the truth is that you don't
need them or their thousand dollar price tag.
When it comes to trading, the best traders in the
world can trade forex through price action on
ANY platform. They understand that the platform is kind of irrelevant. What's really important
is the kind of knowledge that the trader possesses. That is after all what separates the
5% of successful traders to the 95% who lose money.
3) Never getting the proper
education: Many traders think that they can just "wing it". They think they
don't have to understand the intricacies of trading, in order to succeed. Well.....if that's
the attitude that they have, chances are they aren't trading, but gambling instead. If this
is the way you view the market, then you are much better off just taking a road trip to
Vegas. You would have a lot more fun.
If you are the kind of person who looks at trading
the forex market, as something that you learn, as if you went to school for it, then your chances
of success greatly increase. Treat this as seriously as if you were picking a major in
college, because it deserves that kind of respect. Remember that trading is a marathon, not a
sprint. As long as you have that kind of mentality, you'll be fine.