Forex Starter Pathway. 3 Ways to Avoid Failure

Forex Starter Pathway. 3 Ways to Avoid Failure

by Cas Jones

Do you like to learn about new and interesting things? If so, then this article will be right up your alley!

Is a well-known reality that most of the beginners give up their forex trading and lose their trading capital completely during the first year of forex trading. After that interval 9 of 10 novices quit forex as a traders eternally. So if you don't want to be among them (and I hope you don't) it'll be helpful for you to learn on their mistakes.

So what are that pitfalls and on the forex trader's way? I'll put 3 of them in this article.

First is: beginners regularly try to oversmart the forex market. As you might know already, forex market is massive - about 3 trillion worth of dollars a day is exchanged on it! From here on out, we will give you tips on what can make this subject a little more helpful to you.

Also try to see the trend. Don't trade against it! "Trend is your friend" - remember that. I'll explain in detail. If you do day trading, it's weekly or 2-3 week trend. If you trade mid-term, it's monthly and/or quarterly (and sometimes annual) trend. If you trade long term, it's yearly trend. You got the idea. Just identify it and then stay with it.

Fack: a lot of forex starters try to be profitable every day. But reality is - there are a lot of 'bad days' on forex market for every forex trading system be it intra-day, middle-term or long-term trading. There are even bad months for every tactic. That's natural. That's part and parcel of forex trading process, and I mean not only forex trading but stocks, futures, spreads trading etc.

So please do not try to set a goal like "$100 a day at any cost". It won't work. You'll just jump in the bad market again and again, exhaust all your previous profits and then - drain your deposit. Instead don't let that bad day, week or month stop you. Don't give up when bad deals come in a row, but please do not try to recoup them immediately, by any means on any market. Instead wait for a good day, week or month, learn to see it when it comes and use it profitably.

Third stumbling-block of most traders is... their fear and greed. If you let your emotions come into your forex trading game - you're guaranteed to lose your money long-term. Discipline is one of the must-have traits in such thing as trading, and forex trading isn't an exclusion. So develop your forex trading system, set exact set of rules and then adhere to them. That's crucial for your trading, your money and your success.

And also, if you're a classic forex starter with no trading experience at all or little experience, I strongly recommend you not to make massive deposits. Just open a mini-forex account (as for me, $500-2000 will be quite enough) and try it for the first 2-3 months. If you're profitable on it, then move on.

For the conclusion, I persuade you to use at least some of these forex starter recommendations to avoid the core mistakes of all novices. I wish You good luck with your trading! Hope this article helps you.