The seven deadly Forex Trading mistakes - Part Five

The seven deadly Forex Trading mistakes - Part Five

By now you may be thinking that this Forex Trading business requires more effort than we first thought. And you're right! In fact, it is the subject of today's lesson.

Error number five - not putting in the necessary effort

It is a strange phenomenon that seems almost unique in the area of ​​Internet commerce, people believe they can read a book, open a brokerage account, and start making huge sums of money only.

I used the analogy of an airline pilot at the last post, so lets continue with that theme here. Not many people would be expected to decide on Monday that they want to fly long-haul aircraft, buy and read a book for executives on the flight Tuesday, and start work as captain in Wednesday. But with Forex Trading, in such a short learning curve seems that many expected to be perfect.

While I certainly agree that, in proportion to other activities, day Forex Trading can provide much greater returns for less effort, however, it does require some effort to get going.

Trade, like any other skill, takes time and dedication to learn and become proficient. However, unlike many other skills, it's time to become skilled enough not have to be expensive, or on account of existing commitments. In other words, the novice trader can learn the markets and practice their trade while continuing in their daily jobs, and without significant expenditure.

I really would advise any would-be trader to have a steady source of income when they start. The absolute need to generate profit can have a huge detrimental impact on Forex Trading decisions.

A problem many students I work with traders is that they start with a healthy dose of motivation, but when the going gets tough they begin to lose interest. Suddenly it becomes too much like hard work. The first losing trades are made for a powerful reality check. Motivation goes out the window, and plans to withdraw from the day job is quietly forgotten about. Part of the problem is the unrealistic expectations from the very beginning, and part is due to the lack of responsibility. In a regular job, we are normally answerable to someone. If something is not done, there is usually someone higher up the food chain ready to kick our butts.

When we trade our own account, that concept does not exist. We're just accoubtable to himself. For many people it is first. The solution is to return the written Forex Trading plan. If the plan is well thought out, which will include all important mission, and perhaps a set of achievable goals. Re-read these every day will help boost the self-accountabilty and motivation.

Forex Trading is not difficult (something I'll talk more about in next post), but neither is an instant source of riches there for the taking. Like anything worthwhile, you get back what you put in. distinction between commercial and other activities is that once you have mastered the skill, relative to the amount of time you spend "working" will return more than they ever put in!