Applying the Forex Knowledge
A comprehensive trading plan is an unmet ideal for most of the traders. Traders often consider Forex an easy money that distracts them from hardwork. A successful traders knows that trading is a discipline. An experienced and professional trader makes a plan by implementing his extensive knowledge of the market. His ability to consistently apply that knowledge plays an important role. Most of the traders are trading with uncompleted plans or "no plan at all" strategy. Remember that a plan is actually reflecting your understanding of trading environment and it shows how much you understand the trading.
Bee There is no term like "sufficient money". So aim for a satisfied life.
Very nice post. Most of the traders (even me) dont have a full fledge plan. Even the uncompleted plan is not fully implemented. We must show some discipline, but there is always a concept of "fast money" in our mind. It makes us deviate from the disciplined trading.
Traders often consider Forex an easy money that distracts them from hardwork
This is the main problem. If traders can learn to control their emotions and greedness, they can improve their trading skills. Distraction tools are destructive for a trader.
Stick to your rules
Most of the traders think about forex as "fast money". So it is obvious that they get distracted. The problem is that even after reading so much about forex, most of the people do not learn. Most of the novice traders trade at maximum possible leverage.
As I said earlier that fast money concept is really a big obstacle in the way of logical trading. Even after reading so many articles and forums, I cannot remove it fully from my mind. Maybe because Everytime I see fast movement of pips, I want to grab each of them. Maybe we can learn this thing with the passage of time.
I think nowadays traders do have a lot of information before entering into real trading. So the problem is not a lack of knowledge. They also try to make a plan during demo trading. But the problem is that the plan made during demo trading is not implemented in live trading. Sometimes they recklessly trade in demo which they cannot do in live. Sometimes they try to gain by high leverage trading in demo. They may succeed 1 out of many tries and then they do it in live which can wipe out their account in a few tries. Even if they make a serious plan during demo by trading wisely, it is not implemented in real trading. The emotions, undisciplined behaviour and lack of knowledge are the factors that make them loose most of their money or all invested money.
Well, its true that we cannot eliminate these elements that play role in loosing. But I think a lot of forums and websites are now providing free basic training. They provide very good material to understand about forex. By reading them, traders can at least reduce the chances of loosing big amounts. I have seen traders loosing most or even all of their money in one trade. It is due to lack of knowledge.
The good or ill of a man lies within his own will. – Epictetus
very nice points are raised here as i say plan is not that you made in in your mind for trading a real plan is that in which you set all entry , exit points in written form and also you write every trade in your ounal that why you enter and why you exit and your tp and sl levels are also written with reason.
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Many traders start Forex trading without knowing what is Forex and how it works? So they fail in forex and blam the Forex that it is a scam. If you are new and want to be a good trader then you need a complete knowledge and have good and complate plan to do Forex trading. With uncompleted plan it will be difficult for a trader to be a successful trader.
Yes, it is important for any trader that he does not just try to gain knowledge but also focus on executing it because only then things will work. It does not matter how much knowledge we get if we don’t apply it right. I always focus on executing it with help you FreshForex broker through their fascinating educational guidance. It helps a lot and allows one to get the right approach to doing things.
Being an expert trader in the forex market is not an easy task. It takes a lot of effort and dedication. Focus first on learning and then practise as much as possible in the demo account. To stay in the market for a long time, you must understand risk and money management.