Forex Trading Gone Wrong - 4 Warning Signs About Your Currency Trading
Many people out there are constantly searching for a forex trading system which can generate profits everyday for them, are you doing the same thing too? I assume that you might have seen articles on why 95% of the traders lost money in the currency market, so I won't go into that anymore. What I would want to emphasize below is the 4 warning signs about currency trading which prevent them from being successful.
Since technology is so advanced in a world like ours today, traders always think that the more complicated and difficult is a trading system, the better and higher the success will be. This is definitely not true. For the past few years,
I have seen traders maintaining their trading career for more than 10 years by just using some of the simple forex trading strategies. This is because in a brutal ever changing currency market, simple systems work best as they are more robust.
#2 - Working hard like any other businesses
I will always agree that massive hard work that you have put in for other jobs or businesses will reward you in long term, but not for forex trading. Isn't it amazing to know that you can be a successful trader without having to work hard?
Instead you need to work smart. Follow the rules of your proven forex strategy and the market will reward you eventually, you do not have to keep on looking for trading opportunities every minute or so.
#3 - Keeping ego and afraid of losing
If you are a forex trader who does not have any losses, then probably you are not trading at all. I have to admit that I hate to loose in the past too, but once I know that I can profit consistently from the market even there were some small losses, I accepted the fact. Even the best trader of all time does not have a 100% winning rate, and no one does because the market will never allow that.
#4 - Forex scalping gives fastest profits
I can't stress this much enough that you should be looking for quality trades rather than quantity. In the past few years, I have experimented all sorts of forex trading techniques and I can only say that scalping is a very difficult strategy for me. I can turn any of my forex day trading signals into nice profits but not from scalping, as it is not my style of trading.
I have a question for you here. Would you rather earn 300 pips with just 3 trades in a month or would you stress yourself out by looking for 10 pips everyday? If you chose the latter, I must let you know that currency trading is all about high probability trades. I can assure that you won't find quality trades everyday, and since that is the case, you could end up losing much more than what you have scalped from the market.
The above forex tips are something you must learn before you can embark on your trading career with more confidence. My personal advice to you is to first master your trading skills with a proven forex trading system and with some money management and discipline, you are almost ready to be start a home business earning consistent profits from forex trading.
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ABOUT THE AUTHOR
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The author, Daniel Su, is the founder of http://www.ForexTradingPower.com where you can get free premium forex trading tips and resources