Some thoughts on Forex Trading
When many people first embark on Forex trading they think that their lives are going to magically change overnight and that their bank balance will triple. The truth is that mastering Forex trading doesn’t happen in only a few days or weeks and that one is bound to lose money before one makes money. In order to minimise losses and maximise profits it is vital to have a solid plan in place and a good understanding of common mistakes so as not to make them yourself.
The number one most common mistake is not having a trading plan in place. A functional trading plan will help to keep you on track and avoid losing focus. It is easy to get caught up in emotions as one tends to experience the same highs and lows as someone playing on an online casino such as IntertopsCasino, and thus if you treating your Forex trading as a business from the start you are less likely to get caught up in an emotional rollercoaster.
The second mistake would be not having a stop loss order in place. This is the equivalent of a safety net. While you may fall, it will catch you mid-flight and prevent you from hitting the ground. You may feel certain that the market will turn around and thus decide to stick to your guns, but at some point, if it doesn’t, you will need to cut your losses – rather sooner than later. A stop loss order is the point at which trading will automatically close should the market reach this position. The one guarantee you do have is that you won’t be right all the time. In fact, you’ll be wrong a lot of the time.
Over-trading is another mistake to be aware of. Umpteen traders are guilty of this, and instead of first spending time demo trading, they jump in with both feet and find themselves drowning as they haven’t perfected their Forex trading strategy yet. You’ll find this error most often being made directly after a loss in desperation to try to correct the situation.
At the end of the day you need to have realistic expectations. Setting trading goals may help you to remain motivated, disciplined and patient. The market can be illogical and volatile at times, but with practice and persistence, these waters will in time become far easier to navigate.
