Most of newbie traders will agree with me if you have ever traded a live account!
What is that?
Most of the newbie and I would say 90% of them had blown their live account and suffer emotionally. Typical traders will get excited with forex trading when people mentioned to them about the potential high return generated from forex trading. They open a live account, funded their account with hard earned money but…without any knowledge. They are not mentally prepared and lack of discipline in trading.
I was an active stock trader and a lot of stock trader had tried forex trading but ultimately failed and gave up in forex trading. What is the reason behind this? Bear in mind that forex trading and stock trading is a totally different ball game. Stock traders will ‘tend to have patience’ in holding stock when its direction goes against them but sell too early when stock is in rally. However, you are certainly not allowed to hold your currency position as you are trading at leverage. Leverage is a double edged sword in currency trading if you do not how to utilise it.
Why do I say so? Definitely only people that have experienced it can tell you so.
One thing I have learned throughout the journey from stock trader to forex trader is that, you must prepare yourself and equip yourself with knowledge and mentor, before risking your real money. One thing I believe in trading, is about staying afloat long enough to take advantage of big moves in the market. But if you lose your capital too fast, you won’t be able to capture the big move.
Some people say trading currency will be able to make more money as this is a 24/5 market. But i have seen more people blow their live accounts from simple trading too frequent. In the world of trading, placing too many trades doesn’t guarantee you to make more money. It will only cost you more as the chances of you making mistake is way too high than usual. I understand this as I started off forex trading this way and it was a disaster.
We should learn that MARKET WILL ALWAYS THERE. Don’t rush in to place a trade if it isn’t the best setup that you are waiting for. You can definitely avoid this if you have continue to read this article or you have found a good mentor. It will be too costly if you choose to go through this without a good mentor like what I did. Bear in mind that there is one saying in trading; less is more. You must stay patient to wait for the best setup that you are waiting, no matter how long it is.
The next thing is capital preservation. Remember, everyone of us have limited capital. If you lose your money too fast, you aren’t going to stay long in the market. One thing you must learn is position sizing. Controlling your lot size is very crucial when you are trading forex. Large position can make you good money with small capital but at the same time it can ruin your account in very short period.
In Part 2, we would like to also share about what trading method can consistently make you profit in forex market. Subscribe to our blog and LIKE our Facebook page if you do not want to miss out what trading method can give you consistent profit in the market.
Besides that, we are planning to launch our very first webinar sharing on how to start your journey in forex trading from A-Z. Only 10 limited seats in the webinar and register yourself if you do not want to miss it! How?
CLICK HERE to register yourself !!!