It is an exciting feeling when you start trading. A lot of traders are filled with an internal desire to find some secret, big or small, that will give them the perfect edge in the markets, allowing them to fulfill their fiscal dreams. It is easy to get too focused on this quest of becoming the perfect trader; which is why caution is needed. The drive for perfection can create a disconnect between a trader and the markets, resulting in fear, frustration, and possibly even financial difficulties in their trading journey.
As many of our traders know, the key to successful Forex trading is being able to consistently bring home profits. Setting a goal and knowing what you are working towards is important to a trader. However, the way we set our trading goals will also affect us.
A question a trader might ask themselves frequently is, "How can I identify high probability trades?"
Eastern Europe and the old Soviet bloc during the early 90’s is a perfect example of what happens with extreme fluctuation in currency valuation.
Take a look at this equity curve from one of Apiary’s demo accounts:
It’s a sad fact that most people go about learning to trade with flawed, self-destructive expectations. If you don’t approach learning with the right expectations, then success will always remain beyond your reach – irrespective of your desire, how hard you work, or what other resources you bring to the table.
If you want to become a successful trader and realize the wealth and freedom you desire and deserve, then you are going to have to adjust your expectations! Trading is a profession – plain and simple – and just like any other profession the road to mastery is marked by incremental achievements based on realistic expectations.
The currencies market is widely unknown to many, and may seem as foreign as the currencies that are being traded by the thousands every day. There are several pitfalls a trader can meet if they don't understand some basic truths about the market.
Here are four delusions Forex traders might face that can lead to setbacks on their journey to success:
How would you answer this question? What makes a trader successful? Is there one special quality they need, one bit of knowledge they need to learn, one tool that they could use to make them successful? Or maybe, it’s just luck. They are lucky, and now they are successful!
There are some common pitfalls that forex traders need to beware of. As traders, we are all susceptible to natural pitfalls (just ask Shawn about his experience with quicksand). However, knowing what they are and how to recognize them makes them a lot easier to avoid. We asked Brian, one of our instructors here at the Apiary Fund, the top five pitfalls of a forex trader.
I was on facebook the other night, and I ran into an article, “Will Your Child be Rich or Poor? 15 Poverty Habits Parents Teach Their Children.” I read the article, and was surprised by Habit #4. It stated,