Forex Special
You should find that most of the technical features of Forex trading are straightforward, if not simple. All you need to do is analyze a few charts, select an open position and click your mouse. You should be able to learn most of the relevant functions of Forex relatively quickly and with ease.
If the fundamentals are relatively simple to understand, then what is causing so many traders so much difficulty? The answer is the way that you interpret and act on the data placed before you. In other words, you may well be experiencing problems, like so many others, formulating the correct trading and money management plans. You may find it hard choosing the right decisions if you have not developed the correct blend of patience, knowledge and confidence to enable you to do so.
Many experts will inform you that 90% of the actions contributing to successful trading are centered about your mindset. This is because you are constantly battling with your inner thoughts in order to select a consistent set of high quality trading decisions. If you are not able to control your emotions, then your chances of trading successfully will be severely reduced.
You will need to develop a type of mental nirvana that is free of disturbing sentiments that can constantly derail your train of thought. The three major negative influences are considered to be fear, greed and your ego.
If you have ever experienced the debilitating fear associated with enduring strings of consecutive losses, then you will know how hard it is to pick yourself back off the floor and match on. Afterwards, you become frightened that no matter what you do Forex is here waiting patiently to pounce on you. Some traders claimed that under such circumstances, they become paranoid believing that Forex is persistently stalking them. Fear can be a heavy weight to carry on your back.
Greed is another powerful emotion that you must keep in check. The problem is that you will no doubt have access to extensive leverage that can be as high as 400:1. Such a facility allows you to open positions of consider worth with just a small deposit. Consequently, many traders become overwhelmed with the thoughts of substantial profits that they can achieve if they can just make a couple of big wins.
However, this mentality is badly flawed because if you adopt such an approach, then you are overlooking the considerable downside risks. You could then start over-trading placing your own equity in considerable danger. Always remember that novices think of profits first whilst experts analyze risks first.
You cannot afford to possess any ego when you are trading Forex. You cannot out-think this market and you must not let any preconceived ideas influence your trading decisions. Keep in mind that the colossal Forex daily turnover is the summation of all the transactions performed by its enormous number of trading participants. In comparison, you are just a feather in a hurricane. Let the market speak to you and not the other way around.
