Jacqueline Platt

Successful Forex traders make far greater profits than regular traders because of their psychological disposition, which is based on a detailed understanding of the markets, characteristics, concepts and dynamics of Forex trading.

Let’s start by looking at the typical beginner’s psychology. Most newbies are attracted to this business by advertising marketing. They go into it without understanding what they are getting hold of. As a result, they have unrealistic dreams of making large amounts of money overnight. Their systems and processes are weak and they do not realize that even the most skilled traders can go wrong. When a trade deteriorates, they are not equipped to handle the situation and often cut and run and take their losses with them. They do not realize that the goal of exchange transactions is to make profits by making more profitable decisions than those that make losses. Nobody’s perfect!

Another problem with newbies is that they have not mastered the technical and administrative issues involved. They do not understand the importance of operating with less than 10% of their total margin and as a result they often lose everything very quickly. They discovered too late that the market exaggeration that convinced them that they can become millionaires by investing only a few thousand dollars in a Forex account is simply not true. Even if they use tools like robots, they can never get the profits that the experts earn.

In fact, very few Forex traders are successful. Most beginners fail because:

They do not understand the importance of demo trading. Demonstration means virtual commerce, a concept that we will explore in detail later. This roadmap gives this facility a high degree of importance.
They expect to make money from each transaction and do not know how to develop a trading system that guarantees that their profit-to-loss ratio is positive in their favor.
They lack discipline in money management and often trade recklessly and lose their investment before they really start to be funded forex account.
Their psychological conditioning is inadequate and they let their emotions or intuition guide them, leading to strategies that end up with loss.
They do not understand too much the importance of leverage and risk in individual operations.
They regard exchange operations as a bet and not as a serious business with long-term benefits.
They are tempted to take great risks in the hope of cleaning.
Instead of just starting to negotiate a currency pair, they start with more and exceed.
A beginner must follow an easy-to-understand methodical plan that maximizes profits and minimizes losses before risking a single dollar in live trading. Forex trading is a profession and as a doctor or a lawyer you are not qualified to practice within a few days. Rookie needs to learn how to apply a business and scientific approach to Forex trading.