Newbie mistakes onIn Forex trading

Are you familiar with such thoughts? A lot of newbies think that way. Even if they are not fans of bragging and they do not have high self-esteem. Even if they do not have any special knowledge in the field of technical or fundamental market analysis. And those who are completely unfamiliar withForex and the principles of trading, too, often argue so. At the same time, some rely on intuition, others-on their own mind, and others predict a successful search for a magic method.… It is interesting that literally every second trader in the first weeks or months of work considers himself an invincible specialist who will be able to circumvent the unshakable rule of the market:"There is no trade without losses."

Why is this happening? There are several reasons for this, and they are different for different traders, from one to all of them together:

·       Join the market and trade in a "I'll be lucky" mood. There are two types of people: gamblers and those who believe in the infallibility of their intuition and want to use it in trading.

·       Unshakable confidence in your intelligence. Very smart and / or educated people, or those who consider themselves to be such, are convinced that they will winForex using its own trading system, which will be different from all previous ones.

·       Excellent student syndrome coupled with the above confidence. Quite a few people think that all their predecessors made unprofitable trades just because they could not follow clear schemes. And they are not like that, they will not allow such a thing… Unfortunately, the psychology of trading is such that it opens up the most hidden corners of a person's character.

·       The belief that the magic wand still exists, but it is not available to everyone. Such people spend years searching for it. Often, they spend a lot of money every year to buy another panacea, instead of just investing it in training and trading.

·       Banal anger because someone tells them the rules. You never know who said what? Does the trader want to win on theForex constantly-so, will win...

There may also be other reasons, but these are only the most common ones. They have one thing in common: that in the end, the trader believes more and more in himself and the magic wand, and over time this belief goes beyond reasonable limits.

What is the danger of the myth of win-win trading?

It would seem that what is wrong here? Why not believe it? Proponents of exceptionally positive motivation may believe that this approach will only give the trader strength and confidence. Especially if it is an intelligent and disciplined person. But...

To begin with, trading is not an exact science or anything close to it. For example, a good knowledge of fundamental analysis helps you open profitable medium-or long-term trades with high accuracy on time. The trader can use this information to correctly predict the direction. But it still can't know exactly when the traffic will stop. Nor can it predict all subsequent economic or political events, which, in turn, will affect prices...

Technical analysts are very fond of their approach, and many almost idolize it, considering it ideal. But try to delve into its essence, and you will find out that the percentage of processing of one signal in the region of 60-70 is considered very high, just excellent.Slightlyhigher requirements are placed on strategies – combinations of signals. But even here, even 70-80 % is a good result. 90 % is a huge rarity. You need to understand that in this scenario, break-even trading is simply impossible. Losses were, are and will continue to be! The task of the trader is to minimize them and make sure that the profit exceeds them by several times.

Now let's imagine the average person who decided to become a trader and convinced himself that he simply will not and cannot have negative trades. He is fully committed to success. Have you ever seen people who start a business with great enthusiasm, but without the necessary knowledge, skills and information? And it burns out in just a few months, leaving the owner only debts.… A sad picture, and not every failed businessman can safely survive this.

The same thing happens with a trader who is set up for 100% success. At the first unprofitable transaction, his psyche goes through a difficult moment, and this transaction comes very soon. And even if several times he manages to convince himself that this is just a mistake, that he was unlucky, over time ,the "evil truth" still takes its toll. There are new and new unprofitable positions that a properly trained specialist would simply not pay attention to, but they do not give him rest. Enthusiasm disappears, frustration comes, the trader stops believing in himself and makes more and more wrong actions. Which result in evenоmore losses.

The second stumbling block is, on the contrary, excessive faith in yourself or a certain trading system. In this case, the person also loses control over their actions, and then over the account, but not out of frustration, but, on the contrary, out of blind confidence that everything will be fine. The trader is convinced that his strategy will work. He forgets about stoplosses, puts additional trades and doubles them. It does not leave the market, even when all the signals are screaming that the direction is about to change. He just believes in a happy ending. And he relaxes, too much. And then comes what was described in the first version.

Sometimes it's hard to believe that people can behave like this. You can be one of them, confident that it is you who will succeed, it is you who will trade without losses. You can be 100 % sure that this strange behavior is not typical of your character, especially if you have never traded before. But if you want to avoid fatal consequences, take two facts on faith::

1.     Trading onForex trading opens up their previously unknown sides to people. You can't be sure of anything until you face the excitement of winning and the nightmare of losing.

2.     Completely break-even trading does not happen.

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