Forex Market Guide: II

Is a well-known fact that most beginners fail in their forex trading and completely lose their money during the first year of forex trading. After this period of 9 to 10 novices abandon and leave foreign exchange market as traders forever. So if you do not want to be among them (and I hope you did not), it will be helpful for you to learn from their mistakes.

So, what are the pitfalls and that the trader? I will cover 3 of them in this article. First error: beginners often try to oversmart the market.

As you may already know, forex is enormous - about 3 billion dollars a day is exchanged on it! And there are many factors which influence currency movements and interest rate, it is not really a "Holy Grail" indicator - be it technical or fundamental - it's going to predict every market top and low. Also there is no deposit size that will affect a little - remember it. You should also see the trend. Do not against trade! "Trend is your friend" - keep that in mind. So if you do day trading, it is weekly or 2-3 weeks trend. If you trade in the medium term, monthly and / or quarterly trend. If you trade in the long term, the annual trend. You got the idea. Then identify and stick to it.

Secondly, many starters forex try to be profitable every day. But the truth is - there are a lot of "bad day" on the forex trading system for each whatsoever intra-day, medium-term or long-term trading. There are even bad month for each strategy. This is normal. This is an integral part of the negotiation, and I mean not only trading, but stocks forex, futures, etc. trading spreads So, do not try to set a target as "$ 100 per day at any price". It's not going to work. You simply enter the wrong market again and again, lose all your previous profits and then - your entire deposit. And do not let this bad day, week or month to stop. Do not give up, just wait for a good day, week or month to learn and to see when it comes and use it profitably. Third stumbling block for most traders is ... Their emotions.

If you let your greed or fear come into play - this is your guarantee of a long-term loser. Discipline is a cornerstone of forex trading. No matter what happens - stick with your negotiating strategy. Do not change it every day, set a period of time (usually 2-3 months) and for that period of time do not touch at all! Remember, your strategy changes every day or week is equivalent to the absence of strategy at all. Period. So, develop your negotiating strategy initial set of rules and then stick anything. This is vital for your community, your success and your money.

And also, if you are a typical forex trading starter without any experience or very little experience - not to make huge deposits. Simply open a mini forex account and try it out for the first 2-3 months. If you are profitable on it, then move.