Friday, October 2, 2009

NEWCOMERS FAILS IN FOREX TRADING

Zombi collect this information about beginners of forex trader because they cannot continue trading because they made high mistakes. Often, Forex beginners have a method complexity syndrome that separates the independent and the dependent minded ones. Finding themselves research trading methods, purchase and immediately do it, without carefully choosing to consider many factors such as risk management, discipline and psychology. Trading beginners tend to be dependent minded this way, which is very dangerous for any promising successful Forex trader.

Blinded by the sales page of the trading methods being sold to them, all those words of “unlocking the secret” and “unknown key to forex success”, make them disappointed in the end most of the time. They discover that some of the content are already heard about once or twice. The have the conclusion of it being too “simple”, no wonder there are some good,quality trading methods out there are having negative comments. It is not of the trading method, but the one who used it.

Some of them seek for a formula that others may find too complicated, where it is actually a ‘combination of indicators’ or a set of simple indicators combined in the most uncommon way. Thinking this way may also lead to disappointment, because they assume that a method in Forex must be complex and not too simple, and any other method they encounter should be more complex than what they discovered, or else, they complain and give up.

Amateur traders make this mistake. The process may repeat until one gives up, without even fully investing in understanding the full process in trading.

Most of the trading methods out there are not complicated, they are smaller set of rules combined in a simple manner and applied in the most uncommon way. The “complicated stuff” are for geeks and big banks. The bottom line is, if you can not understand something, it is impossible to apply it.

It is best not to skip in learning a powerful new method in Forex trading. You need to learn:

- the proper set-up, entry and exit rules
- how to protect your trade with stops
- how to apply your method in a timely basis, to get most out of the method
- how your learning adds up together to make you a better trader, not a frustrated one.

Simple is not always the easy way, it was just built step by step for the easiest of understanding and application. Simple=Powerful, with the use of just few indicators and rules in a non-textbook approach, is what makes success in the financial markets.

No comments:

Post a Comment