The biggest mistake most Forex traders make is before they set up their first trade. In fact, they usually make this mistake before opening their trading account!
Most traders start learning mechanics and business terminology.
They study charts and look for trends. They try to find conceivable patterns and how to benefit from them.
They learned the meaning of the words “pipe”, “cable”, “Swiss”, “shoulder”, “flag”, etc.
After Jean-Claude Trichet used the word “conscious” three times during the ECB rate announcement, or after the amount of rising prices, the Australian Royal Bank cut rates or the EU / US dollar would be affected. Will.
But the thing most traders don’t do before starting a career in this “sport” is to properly evaluate their own nature and how it will affect their business.
The intelligent e * trade commercial that keeps the child of any conversation trading is correct. It is easy to set up a trade. The mechanics are easy enough to learn. And many traders, even adults, feel just like barfing after pulling the trigger!
Are you going to ice every time you trade? Are you afraid of losing? Even a small amount – would you be angry if you wanted to lose a business? When you close a trade, do you feel happy (winning) or humiliated (with loss)?
You need to answer this question before asking this first question.
When you answer difficult questions about yourself, you will be well on your way to determining what kind of businessman you will be.
Many of those who conduct educational seminars and write books on forex traders talk about 3 types of traders: day-traders, swing-traders and investors. However, I believe there is an effective fourth category: non-traders.
The day-trader goes for quick profits. Successful day traders have steel nerves and don’t mind sitting in front of their computer and watching the up-and-down ticks of their favorite pair. They can easily do a lot of damage knowing that they just need a successful trade or two to move forward. Day-traders depend on charts and technical analysis but they only really care what happens with 5-minute, 10-minute or 15-minute charts. A daily chart represents eternity for the day-trader.
The next type of trader is the swing-trader. Day traders This type of trader is a bit more patient. Dol-traders will read weekly papers and websites and study the fundamentals of their favorite pair. They will then take a look at the annual and daily charts, look for good access, and then decide on their goals. They will then set up their trade on Monday morning, which may or may not be triggered. When the entry for trade begins, the swing-trader is patient then waits until their stop or target removes them. The business of swing-traders usually lasts for a few days, weeks or months – and it’s fast enough for them
The third type of trader is the investor. And investors are the most patient of them all. Investors trade outside of very long-term trends. She keeps her trade and forgets about it. It could be a few months or years before he gets out of his trade. Investors mostly rely on fundamental and long-term economic trends.
The latest type of trader is a non-trader. Although, dealers will not agree to it, it is actually right not to trade. For some people, the trade is just going to be very stressful for them. While education can alleviate this stress a lot, it will not be removed for everyone.
Which department am I in? At the moment, I’m in Division Four. Soon, though, look for section 3 for me.
What should be the best category? Again, it’s up to you.