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How to Win the Forex Battle

 

Engaging in a trading activity is like taking part in a battle. To win the battle, one should be equipped with proper knowledge, experience, and skill. If you do not possess any of the three, you will be like the 99 percent of traders who lose most of the time.



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As mentioned above, having sufficient knowledge, experience, and skill will put you ahead of other traders. But if you are the type of trader who see the currency market activity just as a hobby or look at it as one form of business where you can earn money, there is a big risk of losing all your investments.  The right approach to win the battle is to have enough knowledge, experience, and competitive skills.



In the beginning, you may experience some “lucky trades.” And while that is a good part of being a neophyte, that happens also to be the worst part. Learning and realizing these “bad” lessons early on can help you since it can add to your overall experience. Remember that no matter how good and prepared you are during the demo trading lessons, the forces that rule on the market are inevitable and unpredictable.



Letting your emotions get the best of you will be your biggest enemy in the trading industry. If you are too emotional, it will reflect on the wrong and costly decisions that you make. In addition, your enemies will also increase in number as you come face-to-face with money. Greed, fear, and hope are three things that are powerful enough to affect your decision. How?



Because of fear, it forces you to sell and give up the near bottom and instead buy the one in top. Deciding to make a premature exit in the market is the result of being greedy, and will not make you a rich person. While having fear can save you, being too greedy can wreck you completely.



When you trade, make use of logic and not your emotions. There is a need for you to pick up whatever your losses are because of the emotional decisions that you make and then analyze your “bad” trades. An experienced trader had its own share of acquiring losses at the start. But after reflecting and studying the lessons that he learned from that experience, the trader becomes wiser, smarter, and more critical of his decisions.



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The market changes constantly and demands flexibility in terms of making a decision. That is why in order for a trader to have a clear and good trading decision, overcome your emotions and give ample attention on developing your own style of trading. So if you feel that a trade is bad, do not think twice of discarding it. Same is true if you are feeling positive and good with the trade, take care of it and keep it.





Read Next: Currency Trading For Dummies



 

 

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