In my experience as a newbie I’ve come to understand that one major factor that contribute to total failure in the market is when we approach the market with the wrong mindset due to mis-education, misinformation or whatever. There are some falsehoods I believed and held as truth, and some truths I learnt the hard way.
I call on more experienced traders to please contribute here and tell us in clear statements the DO'S and DONT'S, the MYTHS and REALITIES, the TRUTHS and FALSEHOODS and other useful tips gathered by learning and experience.
As for me one “DON’T” I learnt the hard way was;[B] Don’t fight the market.[/B] Even when you are absolutely sure that you are right about your judgments but you see the market doing the exact opposite. Be humble, don’t argue, accept it and say [B]the market is always right.[/B] If you persist only one thing can happen: you lose money.
Therefore, trade in harmony with the market and you will have many happy trading days. Long (or get out of the market if you were short) when the market is going up, and short(or get out of the market if you were long ) when the market is going down.(Of course it is not that simple). Wise and informed stop loss entry really helps in this area and don’t start moving the stops up and down.
In my view, newbies are not blind but they didn’t have too much knowledge and experience so they could make several mistakes which is not done by expert traders. And also, there are some newbies who didn’t believe to other’s advice because they didn’t understand the risk before they experienced it personally. That’s why, newbies will need more time for training theirself than expert traders.
I agree with this. Lack of knowledge, experience and discipline is the big cause of greedy newbies. First, you need to understand the risk of forex itself. Then start to learn the platform itself. Train yourself in demo account and try to figure out as many analyzing method and look for the one that suits to you. Ask some suggestions to your expert trader…
All things that matter for a trader are that his trading should give him some income. If he is wise enough then he can get income from his trading easily but it will take time before he would become a profitable trader and start earning a good income from Forex
If newbie had knowledge it is good thing for them ,will help to do trading good. They are not blind until they not test their abilities in trading .Just knowledge will not bring profit to them.They have to face live market if they are manage risk and trading in live trading they need not to act upon on others advice.
Far too many noobies are too lazy to study forex before they begin trading. They don’t read brokers terms, then complain when things go against them. They beg for free mentors, then complain when they get scammed.
You wouldn’t open a garage if you knew nothing about cars, or attempt surgery without medical training, so why treat this business any different.
In my book, if you’re too lazy to learn you deserve to lose
Yes, getting enough knowledge is important thing for newbie so they can prevent to experience unnecessary loss which can happen if you don’t have enough knowledge about condition of market and the risk to trade in certain condition. So, profit and loss are common thing in forex trading but you can minimize the loss with good money management and risk management. Mostly newbies didn’t learn about it so many of them experienced losses many times.
Trading is about probabilities over a given sequence of events. There is no such thing as being right or wrong as this is impossible because future price is not 100% rational and/or predictable. So newbies need to realize that they need a good/large sample size of trades before they can talk of an edge with any degree of confidence.
I agree to the fact that i did not have any mentor rather did not hire any mentor for learning the forex trading business. And all my learning majority of the credit goes to babypips, i thank Babypips a lot for this helpful learning lessons.
Dont Overtrade, dont be greedy, dont perform revenge trading.
Do be humble to trade in the market or rather survive in the market to make good and consistent income.
Its always the traders mindset which leads them to profits or losses.
Usually as newbie they have high spirit to making profit from forex trading after reading some knowledge about forex trading system that seems easy to understand, but in fact the market itself move very dynamic and sometime moving opposite from our favor, and if loss occured usually will leading trader being emotion and angry, which their emotion leading them to trade blindly without proper plan trading and actually they already give up if their trading way like that.
Yes forex business is never end, this business is will become proftable business if we can learning well in this arena, indeed most newbie they trade blindly, but after all then they will realized if forex trading required good skill and they must learning if want to survive, nothing easy, but nothing impossible if we always struggle.
I don’t think it’s blindness, rather it’s lack of experience and knowledge what to look for and what to look at. At least that was my problem as a newbie. It’s a problem that can be overcome with enough time and effort.
I agree. I thought I was quite knowledgeable going into my first few trades with real money, but over time it was obvious that experience is one of the most important factors. Books can only tell you so much
Books about forex shouldn’t be applied in real life. Books are only for seeing according to what principles does forex work. But any experienced trader will tell you that building a trading strategy based on the history of price movement isn’t right. History is in the past, it won’t repeat itself, what happened yesterday won’t happen tomorrow. The market has to be understood.
Even when you make the right decision with the entry (if you believe there is an edge in that) then you need to know that what makes your trade profitable or a losing trade is determined after you set your trade. In other words, the outcome of your trade is not determine of what happened in the past, but what happens now.
