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5 Wrong Reasons to Start Trading Forex
Many novice Forex traders fail right from the start. They blame a lack of time, a lack of initial capital, dishonest brokers, or simply a lack of luck. But the real reason for their failure in trading Forex may be in their wrong motivation, incorrect goals, and wrong reasons for undertaking as difficult an activity as Forex trading.
About 15 years ago or so, no one even knew what Forex was. Now, thanks to a massive online advertising attack, even children know about it. The Internet is full of tips and tricks on how to enter and exit a profitable position, but almost no one talks about how to enter or exit the trader’s business itself. Most people begin to trade without having sufficient capital, knowledge, and patience. More importantly, they seem to have completely wrong reasons to enter the trading field. So before even opening a trading account, you need to ask yourself a simple question: «What is my own reason to start trading Forex?»
On online Forex forums, you can find many weird and unexpected reasons people give. You can also find some that, on the contrary, seem quite logical but that are wrong as well.
Looking for a New Job
Being tired of a current job. Tired of the pressure, the routine, or maybe because the boss is just a bad person. Quitting a current job in the hope to trade Forex is not a good idea. It is strongly recommended to think twice before burning all your bridges. It is not necessary to give up an old job for good. It is better to try trading Forex for some time, regarding it as a hobby, while improving your skills. It will be worth thinking about switching to trading permanently if the results prove to be good.
Well, yes, being a trader may sound cool. However, the trader’s profession is far from romantic: there is the same daily routine as any other work. A Forex trader does the same things every day. Analyzes the market, browses the news, opens and closes trades, fills out the log. Day after day, week after week, month after month! Does it sound stylish or romantic?
Planning to Quickly Make a Fortune with No Initial Investment
That is ridiculous! Miracles do not happen. Opening an account with a $100 deposit and making it quickly grow to millions? Everyone has heard such tales, but they all look like the Cinderella story. In reality, the following well-known joke is more like the truth:
A novice Forex trader was asked: “How did you manage to achieve such an amazing result so quickly? After opening a trading account only a week ago, you already have 1 million dollars in it!”
“Well, nothing special,” he said. “A week ago, I opened an account, deposited $3 million there, started trading…”
That is even more ridiculous! With such a view of trading, a trader is not going to survive long in the Forex market. It would be easier and even cheaper to gamble in a casino, play cards, go to a bookmaker’s, or buy lottery tickets. The adrenaline and excitement would be the same but with a better chance to not lose so much time and money.
A Desire to Prove How Tough (or Self-Collected, Independent, etc.) You Are
A man with ideas like that may be advised to steer clear of trading and take up boxing or karate classes. That is where your toughness, self-collectedness, and all other good qualities will be tested in full. The Forex market is not the best place to try to prove anything to anyone.
There can be many reasons to start trading Forex… or to stay away from it. It is always important to think carefully before rushing into some new, seemingly easy, and (ostensibly) profitable activity. Long before you start trading or open an account with a broker, you should have a clear idea about why you want to do this. If your decision to start trading is based on one of the above reasons, just don’t do it. Don’t even think about it!
Автор: А. Афонин, бюро технического перевода «Нефтегаз-перевод-сервис».