There is an opinion among people that trading at all financial markets, including Forex, is like playing at the casino. In their opinion, one can bet at random on falling or rising of exchange rates and get a lot of money if the forecast turned out to be right. However, practice and statistics prove that this is not so. Ignorant of regularities of market development, not knowing how to analyze huge amount of financial information, a beginning trader, as a rule, loses money in a very short period of time.
How to change your perception of the Forex market
The problem that arises is to rely only on luck. Novice traders don’t try to predict market fluctuations and don’t study trading strategies. Their first steps are impulse betting and relying on luck. As a result 80% of beginners lose their deposits and naively think that they are just unlucky. Learn to restrain your emotions and control them fully. The practice shows that most Forex traders start by letting their gambling prevail over their cool-headed calculations and well-thought-out actions. Before you start trading, study the basic rules of money management and read a couple of books on the psychology of the market.
Let’s imagine that trading on Forex is just a game
The statistics shows that 5-10% of newbies on the exchange market are successful and turn trading into an official profession. So what to do with the other majority? Does it turn out that for them Forex is like a roulette game, where everything is put on its own, and the money reward depends only on personal luck and fortune? Let us imagine for a moment that trading at Forex is a game. People, far from currency trading, believe that a trader performs only 3 actions:
- Funds his or her money account.
- Betting on falling or rising in exchange rates.
- Waits.
If that were in fact the case, then forex could easily be considered a game – risky but exciting. However, a trader in his work uses various technical indicators, applies methods of analysis and forecasting. A trader at the exchange spends a lot of time studying charts of quote changes. A technically savvy trader makes bets consciously, rather than relying only on intuition.
To become a successful Forex trader you have to remember the main thing: you are not insured from losing trades on the Forex market. It’s important to keep their percentage lower than the percentage of profitable operations. That is why you have to understand that Forex is not a game. Currency rates are not random, but depend on various economic factors. If you’re ready to work, then first you need to choose a broker here https://topbrokers.com/forex-brokers-for-usa-traders.