Is your email inbox flooded daily with recommendations to trade this pair or that pair of currency? Are you constantly being bombarded with one offer or the other from software peddlers who promise Forex trading on autopilot? Are these endless telephone calls, unsolicited robot calls from perfect strangers driving you crazy? Do you find yourself being tossed around like salad in a China fish bowl? What of ebooks sellers with promises of heaven on earth? Are you a victim of these outright manipulations especially in Forex trading?
Maybe your strength is Stocks or Commodities, it does not necessarily change what you are about to learn. The three deadly mistakes you’ll ever make as a rookie trader. Mistakes that has ruined many and rewarded a few others.
These trading fundamentals has always been and will not change any time soon. The professional trader knows these but the rookie does not.
As a rookie trader, you face the worst odds. Making money without adequate knowledge of what works and how to make it work for you is the surest way to fail.
In case you are not familiar with Forex trading and still wondering what it’s all about and how to get started, I’ll suggest you do two things. They are free, it will not cost you any out-of-pocket expenses. First, open a demo account. Next, take time to read available information provided by your brokerage firm and ask questions. Here is also the first series previous posts to refresh yourself in case you are not familiar with what Forex trading is. You’ll find the post very informative.
Now, to the deadly mistakes that you a rookie trader must guard against unless you want to be a failure. Successful Forex traders have used these simple strategies in amassing tremendous wealth and no one until now has told you about it. Get these secrets drilled into your head and you’ll succeed where others have failed.
1. BE AN EXPERT TRADER IN ONE CURRENCY PAIR
Every successful trader is an expert in one currency pair, not a Jack of all trade. They are expert in one currency pair and are so focused on it
that even like a hawk so that even in their sleep they can make a good analysis of their positions. They may lose money at times, but when they
win, it is always big and offsets losses previously sustained. I’m sure most of you are very familiar about the old saying “Jack of trade and
masterof none”. Pick a currency pair, like the British Pounds and the United States Dollar (GBP/USD) or United States Dollar and the
Canadian Dollar(USD/CAD). Master it very well like you know your naked body, you will in the end better than stumbling from one pair to
another. There are so many currency pairs to choose from, so don’t limit your self to the two currencies I mentioned above.
Do your home work. Treat it as business because trading is not a hubby. It is a business!
2. FOOLING AROUND WITH SOFTWARE ON AUTO PILOT
Of all the most stupid mistakes that rookies make is the insane belief that a trading software on autopilot is publicly available in the market. A
software that will make trading Forex look like a limousine ride to the casino. Any trader who believes that sort of thing is a dumb gambler and
deserves to lose big time. Aircraft pilots know too well the risks in leaving a jet on autopilot unattended, while expecting it to land safely. It is
very foolish to assume otherwise as a trader, especially with open trading positions. There are aspects of trading that are automated, stop loss
order, entry orders and stuff like that, but it is insane to beleive the fraudulent claims by slick salesmen who are good at selling trading software
but terrible traders or in most cases are not treaders themselves.
Point of information here, I’m not saying that software are to be discounted. There are powerful trading software around, but they are mostly in
very few private hands. They not even on autopilot and are not the stuff that circulates online as the holy grail of trading. It is deadly to be
sucked into these false claims. No real trader parades his or her software in public for a pittance. How can a software guaranteed to make you a
fortune be peddled for for $100.00? And you believe the garbage? Nor should you believe or buy into outrageous educational fees to learn
currency trading. More on that later!
3. TRADING DAILY
Some traders may swear that they make money trading daily. It is very possible and it happens. But under reported is that a greater number of
other traders make money as well trading only when their system is set to make money. Some of these folks trade only weekly, monthly or even
quarterly. Last year when George Soros, who by the way specializes in the the British Pounds Sterling came out of retirement to make an
eye-popping profits in Forex trading, it wasn’t in a daily trading position.
There is a reason you are flooded with email recommending one currency pair or the other. Someone of these recommendations are true and a
good case can be made for them, but that is not why you should caution away and dabble into various currency trading. It’s like being given a
menu of alternative choices in a restaurant. You can possibly sample all the food and not end up with paramedic taking you to the hospital. The
email you receive daily are simply what they are supposed to be, a menu of choices.
Multiple recommendations are one of the ways the system is designed, to create constant activities otherwise if trading was done once a year it
will be a dull activity and less exciting. Forex trading is a multi-trillion dollars market and a lot of people have to make money promoting and
peddling all sorts gimmicks.
To recap, open a demo trading account with any broker of your choice. There are so many brokerage out there, but I recommend Forex Yard because of their excellent customer service and quality of products. Of course you should explore others, but beware that where ever huge money is to be made there is always the possibility of bad players hiding behind the veil to take advantage of the ignorant few.
I was absent for a while, putting finishing touches to my free report, TRADING WITHOUT TEARS. It will be released very next month. But I’m back and let’s get ready to rumble. Catch me in the next post for update information on the offer that will change the way you trade.
