Forex Info – Too much or Too little?
Every trader wants to conquer the world of trading and sit on the throne of FX!
And as much as it is advisable to learn all the basics to FX trading, you need to be able to filter and not over-saturate your brain with all the information out there. Too much information can actually be detrimental to succeed in trading.
There are a few factors which can bewitch you into thinking they are imperative to mastering FX trading, but in actual facts they should be avoided as much as possible.
And as much as it is advisable to learn all the basics to FX trading, you need to be able to filter and not over-saturate your brain with all the information out there. Too much information can actually be detrimental to succeed in trading.
There are a few factors which can bewitch you into thinking they are imperative to mastering FX trading, but in actual facts they should be avoided as much as possible.
News And Financial Media
The strongest weapon to influence the traders mind. If the news is negative so is the trader’s mind, if the news is positive so will be the trader’s mind. A positive mind will always perform better, as positiveness reflects in a trader’s strategy and investing decisions.
Don’t forget that main stream media is produced by people that are not traders nor investors; they are just journalists creating content to make news.
News trading can bring substantial profits to traders but it is a very difficult strategy to master, requiring much experience and knowledge; those with less knowledge are bound to make many mistakes when ‘trading the news’ resulting in substantial losses.
The strongest weapon to influence the traders mind. If the news is negative so is the trader’s mind, if the news is positive so will be the trader’s mind. A positive mind will always perform better, as positiveness reflects in a trader’s strategy and investing decisions.
Don’t forget that main stream media is produced by people that are not traders nor investors; they are just journalists creating content to make news.
News trading can bring substantial profits to traders but it is a very difficult strategy to master, requiring much experience and knowledge; those with less knowledge are bound to make many mistakes when ‘trading the news’ resulting in substantial losses.
The addiction of Screen Watching
Being hooked to the screen 24/7 makes you into a ‘day trading gambler’ even if you don’t want it to. Imagine staring at 20 different charts a day, following the higher time frames and then the lower time frames, trying to decide whether to scalp 10 pips here or 5 pips there, leading to an addictive trading behaviour which results in the spontaneous placement of orders and trades, hoping that the next trade will bring profit and depending on luck! This will be disastrous and is indicative of the gambling behaviour we all spurn.
Being hooked to the screen 24/7 makes you into a ‘day trading gambler’ even if you don’t want it to. Imagine staring at 20 different charts a day, following the higher time frames and then the lower time frames, trying to decide whether to scalp 10 pips here or 5 pips there, leading to an addictive trading behaviour which results in the spontaneous placement of orders and trades, hoping that the next trade will bring profit and depending on luck! This will be disastrous and is indicative of the gambling behaviour we all spurn.
Too many strategies don’t work!!
With so many trading strategies available, so many ideas and philosophies, and educational webinars about FX trading around, a novice trader is spoilt for choice, but too much choice can be confusing and misleading.
A novice trader should not accumulate trading information from different sources and bundle them all together in his head, as they will lose all direction and defeat the object. A novice trader should choose a source carefully and only when that subject has been mastered should he leap into a new subject. FX knowledge requires patience and planning.
With so many trading strategies available, so many ideas and philosophies, and educational webinars about FX trading around, a novice trader is spoilt for choice, but too much choice can be confusing and misleading.
A novice trader should not accumulate trading information from different sources and bundle them all together in his head, as they will lose all direction and defeat the object. A novice trader should choose a source carefully and only when that subject has been mastered should he leap into a new subject. FX knowledge requires patience and planning.
Greed-the force behind FX
Greed is the hunger of trading; the reason why people get involved in the FX markets. Even if a trader ventures into the world of FX trading for the sake of curiosity or simply because it is fashionable, trading is completely capable of bringing out the greedy side in all of us.
We are all capable of promising ourselves that ‘when I make so much etc., I will manage my risk better’ but that is never the case! We are humans and we are guilty of greed, so suddenly we see ourselves in the mindset of risking more than we can afford to lose, and that is where the danger begins. We lose control and the powerful mindset of trading overwhelms us.
Greed should never be the reason why you want to discover FX trading, it should be another reason, such as curiosity or simply an interest in this new industry.
Greed is the hunger of trading; the reason why people get involved in the FX markets. Even if a trader ventures into the world of FX trading for the sake of curiosity or simply because it is fashionable, trading is completely capable of bringing out the greedy side in all of us.
We are all capable of promising ourselves that ‘when I make so much etc., I will manage my risk better’ but that is never the case! We are humans and we are guilty of greed, so suddenly we see ourselves in the mindset of risking more than we can afford to lose, and that is where the danger begins. We lose control and the powerful mindset of trading overwhelms us.
Greed should never be the reason why you want to discover FX trading, it should be another reason, such as curiosity or simply an interest in this new industry.
Confidence conquers fear
A trader needs to trust himself and his trading strategy. He needs to be confident with every order he places, he needs to trust his own judgement when making trading decisions, and he needs to exert discipline in his own strategy. Other traders ‘opinions or stories should not count.
A trader needs to trust himself and his trading strategy. He needs to be confident with every order he places, he needs to trust his own judgement when making trading decisions, and he needs to exert discipline in his own strategy. Other traders ‘opinions or stories should not count.
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