You need more than a set of red Gordon Gheko suspenders to become an online Forex trader. You need to have the equipment, the mentality and the common sense to hold you own in a vibrant, tough, highly competitive and volatile market. A market where the faint hearted get eaten for breakfast and the impulsive for lunch. The people who make it in Forex make very few mistakes, and when they do, they learn from them. Some of the veterans of Forex will gladly tell you that making a mistake was the best investment they ever made. Not that we recommend that all Forex traders should make mistakes. It is always better to learn from others. So here are just a few prize examples of popular mistakes and misconceptions of Forex dealers.
Knowledge can be bought.
Many traders think all they have to do is take a free online non-objective Forex trading course, and the red suspenders will be theirs, that is the biggest mistake that can be made. It takes many weeks if not months of practical experience to learn the business, and before many people of got an inkling of what the market is about, they have lost their equity or their appetite. Go slowly and steadily for the first while. Rome wasn’t built or bought in a day. To establish your own trading method you need to develop it as and understand it inside and out.
If you are smart you have to make money at Forex trading.
Being clever helps, but it is only one factor in a winning combination. Being systematic, patient and not impulsive are also factors that help to complete the picture. History has proven time and time again, that armies (and people) that begin to believe their own propaganda always invariably lose in the end. They may win a few battles, but they almost always lose the war. Being consistent is better and if you continue to win you can start to believe in yourself, and go for bigger victories.
If you listen to people in the know you will always make profits.
People, who are really in the know, with the possible exception of your mother, will never really tell you what is happening in the Forex market. If the people who sell or volunteer information were so smart, why are they wasting their time with you? They should be out there making the big bucks, instead the make a few dollars selling fresh fish like you third hand information.
You can become very rich, very quickly
Theoretically possible, in practice, highly unlikely.
Of all the 95% of people who retire hurt from the online Forex trading business, probably 95% of them prescribed to this theory. They went for broke early, and lost their money. The people who make it take the long term view, spread their portfolio and look at their profit and loss figures every month or every quarter.
To sum up, these are just a few of the mistakes that will see you out of the Forex business before your feet touch the ground. Try not to make them and others like them. If you don’t trade you can’t make mistakes. However that is also a mistake.
Nobody told you it would be easy!
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