THE 8 MOST DANGEROUS MISTAKES OF FOREX
(AND HOW TO AVOID THEM) BY Salako Sam
INTRODUCTION
With my little years in FX Trading, I sat down one day to cross check the causes of my SUCCESSES & FAILURES. The personal determination to reflect on this was driven by my desires to improve on my performance in the future. I now ask the Question “what makes a good Investor?” pondering on that question I discovered that the 8 most dangerous mistakes of FOREX that I am about to write on are what they totally avoided in the course of their trading experience. I discovered that their no.1 ingredient is PATIENCE. Often, beginners to the game always hope for annual returns in hundreds and thousands of percents and then you will see many snake-oil sales men that are willing to encourage them with impossible promises. Success in FOREX TRADING requires a certain amount of psychological devotion, and a well long-term outlook.
Now let’s take a look at the 8 most dangerous mistakes of forex.
IMPATIENCE:
Traders of all markets and levels tend to fall victim to impatience when it comes to expectations on returns. An attitude that exists among newbies. The notion that success is a given, and that it must appear quickly and without much effort is nothing but a lie.
Success in investing is measured in years and not in weeks or months as some has been made to believe. Any successful trader will tell you that investment in the market is a long term proposition.
Names like Soros and Buffet are often mentioned when it comes to success in the investment world, but their seeming overnight success was in fact not overnight at all, far from it, but it was the result of years and years of steady, compounded returns.
SOLUTION:
Let us ask ourselves the following questions?
1. Are my expectations realistic?
2. What are my Long-Term financial goals?
If those questions have been settled (i.e. has a realistic expectation and having/ planning a long term financial goal) then 90% of the problem of impatience has been settled.
For a more practical challenge of impatience, namely impatience with a particular trade, CONFIDENCE is the key. How does someone gain CONFIDENCE? It is simply by practice. PRACTICE, PRACTICE AND PRACTICE. This is when the issue of PERSEVERANCE comes in, because during practice, inevitably there will be mistakes and mistakes are part of the learning process in life. So you need to PERSEVERE during the practice. Remember; no stain no learning. So exercise enough PATIENCE and you will see your dream coming true in the world of investments with a Long-Term Financial Goal.
NOTE: Did you know how much $1,000 with a return of just 3% per month compounded over the next seven years will be worth?
To be continued…………………….
(AND HOW TO AVOID THEM) BY Salako Sam
INTRODUCTION
With my little years in FX Trading, I sat down one day to cross check the causes of my SUCCESSES & FAILURES. The personal determination to reflect on this was driven by my desires to improve on my performance in the future. I now ask the Question “what makes a good Investor?” pondering on that question I discovered that the 8 most dangerous mistakes of FOREX that I am about to write on are what they totally avoided in the course of their trading experience. I discovered that their no.1 ingredient is PATIENCE. Often, beginners to the game always hope for annual returns in hundreds and thousands of percents and then you will see many snake-oil sales men that are willing to encourage them with impossible promises. Success in FOREX TRADING requires a certain amount of psychological devotion, and a well long-term outlook.
Now let’s take a look at the 8 most dangerous mistakes of forex.
IMPATIENCE:
Traders of all markets and levels tend to fall victim to impatience when it comes to expectations on returns. An attitude that exists among newbies. The notion that success is a given, and that it must appear quickly and without much effort is nothing but a lie.
Success in investing is measured in years and not in weeks or months as some has been made to believe. Any successful trader will tell you that investment in the market is a long term proposition.
Names like Soros and Buffet are often mentioned when it comes to success in the investment world, but their seeming overnight success was in fact not overnight at all, far from it, but it was the result of years and years of steady, compounded returns.
SOLUTION:
Let us ask ourselves the following questions?
1. Are my expectations realistic?
2. What are my Long-Term financial goals?
If those questions have been settled (i.e. has a realistic expectation and having/ planning a long term financial goal) then 90% of the problem of impatience has been settled.
For a more practical challenge of impatience, namely impatience with a particular trade, CONFIDENCE is the key. How does someone gain CONFIDENCE? It is simply by practice. PRACTICE, PRACTICE AND PRACTICE. This is when the issue of PERSEVERANCE comes in, because during practice, inevitably there will be mistakes and mistakes are part of the learning process in life. So you need to PERSEVERE during the practice. Remember; no stain no learning. So exercise enough PATIENCE and you will see your dream coming true in the world of investments with a Long-Term Financial Goal.
NOTE: Did you know how much $1,000 with a return of just 3% per month compounded over the next seven years will be worth?
To be continued…………………….
