Viewing Forex Pragmatically takes a realistic view that may not be “ideal” to many traders. However, experience has proven that applying this view results in a much greater chance of success. I will be informing you on how to change your perspective from the micro to the macro, this will result in causing you to see the big picture.
Seeing the big picture means comprehending that:
Money is made over time
There is no get-rich-quick scheme
Knowledge is accumulated over time
Experience is aquired overtime
Money is made over time. This key factor indicates that it is not realistic to expect to make 100% a week on your account, or even 100% a month for that matter. My personal goal, for instance, is to make roughly 20% a month. Understand that your account will slowly increase over time. It may help to look at it this way: if you are profitable at all in Forex, you are among the top 5% of people who trade. Additionally, keep in mind that the majority of the 5% of people who make money in Forex do not become millionaires in a matter of months; it takes time, hard work, and perseverance. Risk management plays a significant factor in making money over time. Without proper risk management, accounts will inevitably crash ‐ either immediately, or subsequently after skyrocketing. The market is a harsh teacher, and she loves to teach an expensive lesson.
The “get‐rich‐quick” saying is completely fallacious. People lie about this market every single day. Do not believe the deception they spread. When I first began Forex all of my friends would tell me “oh that’s just a get rich quick scheme.” And to be honest, I wish it were. If I could make money the way most people say, I would be living it up. I would have my million‐dollar penthouse and my Aston Martin DBS. I hate to break it to you, but they are wrong. It takes much dedication and hard work – just like a career. Yes, it is true that you can make a lot of money. Nevertheless, the work that it takes to get there is substantial. It is the uneducated and the deceitful people who promise you the world in order to steal what little money you do have. Do not fall for their tricks; don’t be deceived.
Now, that being said, I do feel confident in saying that not every Expert Advisor out there is false, not every product a scam. There are many products that are truly beneficial in your trading. You must steer away from those people that offer you insane percentages for a minimum fee. I know of several EA’s that promise “100% ROI a month and for a limited one time offer you can get this EA for only $99! Hurry offer ends soon!” These offers are so absurd and unrealistic. There are many safe trading rooms out there.These trading rooms can be highly beneficial because you get to interact with other traders and watch how they perform first hand. You can learn a great deal‐ I personally am in several trading rooms.
Knowledge is accumulated over time. You will learn countless aspects of trading. As the adage goes, knowledge is power so learn as much as you can. The benefits that result will be applicable not only to Forex, but in regards to your own personal life as well. The more you know about the trade, the more you know about external factors that affect the market, and the better you will be able to make analyses and predictions. It takes a great deal of time to learn and memorize these factors, to know what to look for in the market based on experience and knowledge acquired. Do not think that you will start trading Forex and that three months later you will have learned all that is to be known. This couldn’t be further from the truth ‐ I learn something new almost daily.
Experience is similar to knowledge, in that it to is acquired over time. This is something that must be taken into consideration. Most traders loose money ‐ if you are one of these, do not lose hope. Think of the money you have invested as an educational expense. It costs most people a lot of money to learn how to trade, but if you learn from your mistakes then any money lost will be made up in the end. Experience is also a factor when you are looking at yourself in the mirror. You may think to yourself: “Why can’t I learn how to trade? What am I doing wrong? I just thought I would be making a ton of money by now!” Many people allow these types of questions to continuously haunt them. My question to them, however, would be: “Howlong have you been trading?” It is predicted that the majority, approximately 95 percent of traders, fail within the first year. If this statistic is true, then I pose the challenge to endure longer than a year and to learn from your mistakes.
Experience plays a significant role in trading – a concept that cannot be stressed enough. While it may be true that some learn faster than others, overall it takes most people a considerable amount of time to learn how to trade effectively. Take, for instance, other careers: a business serves as a good example, due to the many parallels and similarities. You come up with a superb idea for a business, however you know there will be a lot of hard work and strategizing before you will be able to get it off the ground. One of your initial steps would be to create a business plan, would it not? Following the plans, there are mulitple other things that must be done. My point is that it will take a lot of experience before you truly understand every aspect of how the business runs – the ins, the outs, etc. This is equivalent in trading. There is a ceaseless flow of new information to learn in trading: indicators, chart patterns, significance of news, different kinds of analysis, spreads, swaps, and so on and so forth. Thus, if you take the same approach to trading as you would in starting a business ‐ viewing it as a long-term process ‐ then you will acquire more patience and understanding, invariably improving your trading.
Take this article to heart, it will assist you in all of your endevours as a trader. You will find that taking a pragmatic view may seem difficult and perhaps stressful, however, in time it will beinifit you greatly. Please leave a comment and let me your progress as you put these thoughts into action.
I sincerely thank you for taking time to read this. I hope that it alters not only the way you trade but also your view about this market.