There are some wrong concepts in the minds of newbie traders, that is.
Forex trading is a shortcut to get rich
Forex trading is not a shortcut to getting rich. It takes skill, knowledge, and time to grow and develop in the forex trading business. If you are from nearest possible trading you are bankrupt instantly.
We can lose all capital in a moment
In forex trading, we can lose all capital in an instant, we do not lose. There are many tools to manage our capital to survive, even grow. One of them is stop loss. Trader’s understanding of margins, leverage, and other tools will prevent traders from making mistakes.
Business foreign exchange transactions are gambling
Every business that we do will be a gamble if we do not understand the strategy and how to grow the business. The employee of a fast-food fried chicken company that has worked for decades and plans to resign today is a gamble because he is blind to science. See also forex trading
The fatal error of other newbie traders is
- They think they can trade with 80 -20 accounting, down 80% win, and 20% loss.
- They think can get 100,000 USD from the capital of 10.000 USD within 6 months.
- They think the forex market is always can predictable movement.
- They think they can transact with 100% accounting system, buy 100 wins 100.
- They can resign from their old jobs as accounting, staff, staff after study for 6 months then successful career as a full-time trader.
The main basis of forex trading is not like the science of science is certain. We do not always profit or always lose. Trading is a probability, there is a chance to lose 50% and win 50%.
As a newbie trader, you must learn money management. You will not make capital out of capital, therefore, you must learn to avoid capital as early as possible. Look for methods of transactions that best fit the style and capability of our capital.