How To Lose Your Shirt In The Forex Market
The life a Forex trader is pretty exciting, There are days where you make lots of profits but there are also days where you could be losing money. What you should focus on is to get more profitable trades than losing trades so that you can make an overall profit.
However this is not usually accomplished. One of the main reasons is that people kept making the same mistakes again and again. Until they learn to change their habits, they are going to keep losing money.
One Forex trading habit that can make you lose your money is putting real money onto a new forex trading strategy that they have just learned. That should be a big NO-NO. Remember to go for virtual cash first and apply what you have learned.
You need to prove to yourself that you can make profit consistently before you pump in your hard earned dollars into it. My suggestion is to go for at least 4 weeks of profitable trades first.
Tags: virtual cash, trading strategy, forex market, real money, Foreign Exchange Dealers Coalition, Foreign exchange market, Forex trader, Retail forex, earned dollarsOriginally posted 2008-05-15 11:30:50.
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Forex trading is an all-consuming obsession. It is not something a single investor can buy and hold. With leverage, the returns can be huge, but – more times than not – the losses are 100%. Many successful traders have blown up account after account before they learn to manage the phsycology of trading (if they do).
To be a profitable Forex trader takes lots of time, research, experience and commitment – particularly in this highly volitale market. You can learn more at where other traders share their experience.
Maybe consider an international or emerging markets mutual fund…
Good Luck!
I use to years ago when I was selling baseball and football cards over the internet at yahoo auctions but then then they raised fees at the time that made it cost-prohibative at the time. As for it being real money – it wasn't enough to live on if that was what you meant, but I was making a profit over my expenses.
[...] Forex market trading was derived from the foreign exchange. The foreign exchange market which is commonly know as the forex market or fx has not been around for all that protracted. It was developed in the early 1970 ‘ s. The cause was for the United States had dropped the gold standard. This dropping of the gold standard caused public currencies to vivacity kooky if you will. Prices began to stutter uncontrollably. When this occurred banks seized the go at to buy currency when it ‘ s market price was low and since resell it adjoining it strengthened. Wherefore [...]
I think you did well to put real money into your trades. My advice to you and others out there reading is “Do not paper trade”; real traders trade real money – WHY? One word “emotion”. This little monkey that will dart around that 6 inches of space between your ears is absent in paper-trade, and that's why most beginners think that they can be a great trader after initially doing well on paper. It is far more painful when they incur real losses, after gaining confidence in (profitable) paper-trading. Emotion WILL ALWAYS get in the way when they switch [...]
Im like 90% sure the only value your play money has is on ebay. If you're lucky you could probaly sell 2mil for 10 bucks.
However, the experience isnt a bad part of the deal and might help you out in real money games.
Thanks Roger, I am honored by your comment. As I have been posting on a number of forums the statement by Finra “Leveraged and inverse ETFs can be appropriate if recommended as part of a sophisticated trading strategy that will be closely monitored by a financial professional.” says it all. These are great tools, especially in retirement accounts that otherwise wouldn't have the ability to short.
People, LISTEN – there is NO such thing as forex trading strategy……………..but there is ALWAYS such a thing as forex trading stragedy