Forex Trading Dangers - Make Sure You Know What You Doing


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 trading dangers.    

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.




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