Not everyone can be a Forex Fiend right from the get-go, or sometimes even after years of trading experience. While a lot of trader psychology analysis deals with how to boost your confidence (in Forex anyway) and become that fearless Forex trader you want to be, it is equally important – if not more realistic – to learn how to be a good loser in the Forex game (that covers the other 95% of us, right?).
- Earlier this week, John and Tim both made some observations about wealthy traders' habits, one of them being that “they are patient with winners – and ridiculously impatient with losers”. The key takeaway here: patience is a virtue, but not in Forex. Best tip from Tim: Don’t coddle those losing trades.
- Want to become an unsuccessful trader? Yeah, me neither. Elliott Wave International offers up a how-to guide in reverse – how to avoid the 7 most common mistakes made by experience traders. This reverse how-to guide has a little bit of everything – why market trends are not like billiard balls, a wag of the finger on patience, and a little Mark Twain to wrap it up.
- Markets (and traders) go through a lot of mood swings. Some days you’re winning, other days it’s all downhill - down a really steep hill. Equally damaging can be those days in between, when you’re just plain bored. Lesson here is to stick to your plan before you get too trade-happy.
- As if you need more material for your therapist, you’ve probably heard a lot of advice about how effort and passion will go a long way. What your mother likely forget to tell you was that even your best effort and intentions can cost you a lot of money the first days, weeks, months (close out that position already!) of trading. Perseverance is the greatest lesson you can learn.
Our intention is not to scare the crud out of you, forever intimidating you from investing in Forex. We just want to make sure everyone is aware of the uphill battle that may lie before them, and the significant risk of loss. Now that we’ve traumatized you, here’s some news to make you feel a little more upbeat and curious about Forex, the next mainstream asset class:
- If you’re still being as a wallflower in Forex, the beginning of the Forex trading week is as good a time as any to get started. For the visual learners, Raghee Horner offers a video lesson on how to start your FX trading career on Sunday, and then survive the first 24 hours.
- Oanda's take on being a market maker vs. a market gamer is speaking our language: “Transparency is the distinction between making a deal or a market, and gaming a deal or a market. A business that shows its customers how things work behind the scenes is able to prove its operations are honest. Transparency ultimately equates to fairness.”
- Now here’s some news to get pumped about: Forex trading volume is “up and to the right” (Michelle’s favorite expression) the world over. Check out these numbers, and tell us if you don’t tear up a little. FX trading is up 400% in two years in the Middle East (read that again, slowly…400%). Not nearly as impressive, but still brag-worthy, foreign exchange is up 31% in the UK, 15.8% in Japan, 43.1% in the US since April 2009. Up and to the right is right!
- If you haven’t already, join our wicked awesome Facebook page. We post goofy currency facts (note the monkey coin), play Forex trivia, and crown the PIP of the week. Sometimes we’ll even tell you what we ate for lunch.
We want to know what's keeping YOU (yeah, you) from taking the plunge and joining Currensee. Tell us your biggest hurdle or reservation. Come on, we can take it.
Stay classy, traders.
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results.
Be sure to read the full risk disclosure before trading Forex. Please note that Forex trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved before trading. Performance, strategies and charts shown are not necessarily predictive of any particular result. And, as always, past performance is no indication of future results. Investor returns may vary from Trade Leader returns based on slippage, fees, broker spreads, volatility or other market conditions.