الخميس، 6 سبتمبر 2012

5 Ways to Fail at Forex Trading

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Normally I'm out to save your bacon. I typically want to keep you from making any mistakes while trading and keep you going. Here I'd like to present a way to fail at forex trading without a doubt.
One: Use Money that you need for day to day living.
If you have some savings that you might be depending on as a safety net, or even as what you plan to use to pay the bills in the near future, use it to fund a forex account, this will insure that you feel some pressure to succeed and feel highly emotionally attached the money.
Two: Sign up with any broker
Who wants to waste time with broker shopping. Just pick one from a random internet search or from a random forum recommendation from a stranger. No need to research, or use a demo account. Open an account with a random broker, no need to worry about what country they are based in or whether they have to follow the regulations of your country.
Three: Don't waste time practicing
Practicing just sharpens your skills, it doesn't let you cut through the chase and just get to the trading. Start trading with real money immediately. You can learn as you go.
Four: Trade Wild West Style
No need to think before pulling the trigger. That takes all of the fun out of trading. Make trades completely on impulse. Trade any lot size you want.
Five: Don't bother worrying about risk
Life is short, why worry about what you're risking. Who cares about using stops, or worrying about how much risk exposure you have. Worrying about these things is such a waste of time. It's better to fly by the seat of your pants and figure it out as you go.
What did you just read?
With any luck you've read the above and realized how ridiculous any of it would be to use as advice. The problem is, the existing information out there, typically trains you to act this way even if they don't promote it directly. As humans we are prone to certain behaviors, and without better information, the above is what we are likely to do without any prior experience in financial trading of any kind.
Forex is great because it's accessible to the average person very easily, but it also means that people come to the table with an untrained mindset. That can be a recipe for disaster for people that want to start trading.
If you want to get started with trading forex, do research, do take time to practice, and don't use money that you need. Honestly, the best way to get started is to take a small amount of money that you could care less where it ends up, put it in a live account and start learning. You will probably lose it, but you will learn exactly what not to do, and you won't get hurt in the process.

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