The many ways how forex brokers are turning the trading of forex into a scam ~ forex trading robot demo
Today I attempt to show why a winning trade can be just as bad as a losing trade in the realm of forex trading.
Nothing hurts a musician like the tag of a one hit wonder. The failure to capitalize on a songs success to attain greater heights is unbearable and often leads to a sad cycle of self destruction. It is reported that Michael Jackson was greatly affected by the failure to attain the same heights with his albums released after the 1991 success. Yet Jackson was not a one hit wonder. He had already become a legendary figure in the music world incomparable to any pop star right before or after him. But he still felt a loser for failing to make something big to rival his previous success. And he died attempting the 1991 fete.
Successful forex traders often find themselves in the same sad situation as their counterparts in the music world. The thought that there must always be a losing trade is an encumbering nightmare to every forex trader. Matters are made worse by the fact that you never know the trade that will end up a losing one in the forex market. Past performance does not determine future results for the trades you take in your trading of forex. A series of winners may be interrupted by a series of winners. One thing that is for sure about the trading of forex is that there is always a long series of losing trades than winning trades.
But why is it that a big winning trade in the forex market is rarely followed by another winner? People who have traded forex for long can affirm in unison to the fact that the forex market is unpredictable. Unpredictability of the forex market is the only thing most certain about it and it follows the forex market like a snails trail. But the forex market being unpredictable is simply a general view as to why most forex traders encounter big loses after a big winning trade. Other factors play an important role in the disastrous trades that forex traders take after a winning trade.
Lack of a personal code
Most forex traders do not imagine developing their forex trading abilities beyond that point of having a forex trading strategy and forex trading capital. A lot of forex beginners are so eager to go live in their trading of forex that they forget the essentials. They undertake a one month research on how to trade forex online and begin trading the month after. Forex beginners most often start trading forex online not because they are ready to trade, but because they have the forex trading capital. They crave to go live in the forex market and soon their delusions of grandeur with the forex market end up in frustration as shocker after shocker of bad trades electrocutes them.
Developing a personal code on how to trade forex online is a must for every forex trader hoping for success. And a code must be practiced; its not just a matter of having it. Every forex trader must consider it an oath which if disregarded leads to self destruction. The personal code should act as a guide. Good trades vanish whenever the code is broken. Whenever after a winning trade you have the strong desire to enter another trade, revisit your personal code. Ask yourself whether it is in your interest to take another trade. What other thing could you do with the money that you just made. You should ask yourself these things before you even look at a trading chart again. We all have needs that most often require money. So there is just no use in wasting the money you just made on another trade.You do not need huge capital to start trading. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars.
Overconfidence
It is a good thing that a winning trade gives you confidence, but to most forex traders, that confidence becomes a poisoned chalice. Confidence is the most destructive element in an untrained mind. Do not get sunk into the fallacy of believing too much in yourself to the extent of forgetting the attributes that you should be looking for in your trading of the forex market.
If you entered a trade after the confirmation of your trading signal and a large directional move has made you reach your desired risk reward, why should you rejoin that market after taking your profit yet a retracement is yet to take place? Most people want to enter a trade after a large directional move when it feels safe to be in a trade. Yet that’s the point that most of these forex traders that want to play it safe get caught. They forget that a large directional move must be countered by a retracement to a confluence level of the market even if only for a few hours. That is the only way to ascertain that the trend is still in motion. Most traders that get into a trade after a winner are deluded by the fact that their wishes will determine when the trend reverses.
Capital accumulation
The stakes are never high after a big winning trade. You develop the mindset that you are not spending your forex capital. You don’t mind about losing half or even the entire amount that you just made. You forget that future trades are more important than the haphazard forex trade you are about to take just to throw away the profits you just made. Your capital accumulation over time does not mean losing your head. An old saying states that a fool and his money are soon parted. This is so true for most forex beginners and even those that have had years trading forex online. Capital accumulation breads carelessness. Plan before hand what you’ll do with any profits that come your way. Most often I like to withdraw the money that I make trading forex online. I have struggled through the years creating a sizable forex trading account and I’m all aware that it could be all wiped out if only for a second I stopped practicing good money management. Mostly I feel that withdrawing any profit I make in the trading of forex is the only safe way to ensure my development. I am in this business to make money and if I don’t withdraw my forex profits then I’m not appreciating my hard work.
In conclusion, do not suffer the equivalent of a one hit wonder in your trading of forex online. Guide yourself and be guided by those that know how hard it is to attain success in the trading of forex online. Forex trading is rewarding, but only to those who know how to follow their code, controlling their confidence and wise handling of any profits coming their way in the trading of forex.
You do not need huge capital to start trading. Open a trading account with NORDfx and trade both forex and binary options for only 10 dollars.
Call us today on 0725 050 419 for the best forex trading orientation.
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Call us today on 0725 050 419 for the best forex trading orientation.
Related Articles:-
Can forex trading be taught?
How much should one start trading forex with
Have courage to open a real forex trading account
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