Are you a Forex Beginner? 5 things you focus too much on

Beginnings on the currency market can be difficult. The fact is that no one was born with the knowledge of investing. This is something that needs to be acquired through education and / or experience. Undoubtedly, the ability to think analytically, quickly combine facts, flexibility, discipline and a few additional predispositions are the advantages that can facilitate the whole process of becoming a professional speculator or investor. But even if we have these qualities, then before we discover them, the moment will pass. If you are a forex beginner, 5 things you focus too much on keep you from earning regularly.

In this article, we detail 5 things that often excessively absorb the attention of novice adept investors in the Forex market and are able to destructively affect its results in the future.

# 1 - Above average results on DEMO

A demo account is a good start. Virtual capital, the loss of which we are not afraid of, makes us feel the relative comfort in a new, foreign environment. The more we learn about the possibilities and mechanisms of the platform as well as the market itself and, as a consequence, we notice the potential of earnings, the more freedom we feel.

The farther into the forest, the more new ideas - for trading, strategies, investing in various instruments. When the trade starts to come out somehow, we feel the need to generate more and more profits while maintaining the aforementioned comfort. 10% in a month for a demo? Extra, but not much. We want 100%. Because we are planning to pay PLN 5000 to a real account and we do not want to lose them, but multiply them quickly.

It is a trap in the form of an appetite that can never be satisfied. You are stuck on a demo, and your worst enemy will be the fear of losing real capital. It will soon turn out that even on demo, these 100% is not such a hop-siup.

Focus on the stability of the results, and not above average rates of return in a short time (especially on virtual resources). This will increase your confidence and make it easier for you to enter the world of real investments.

#2 - Search for the perfect broker

I often hear a question: "Which broker is the best?". I always answer the same: "If there was one perfect broker, the rest would disappear from the market in the long run".

There is no perfect broker that would meet all our requirements and whims. Not only that, it is impossible to indicate even the best three, because often traders' requirements are completely different, and sometimes even unreal. Choosing a broker always involves some compromise, and you must be ready for it. The only thing you can do is write down a list of your priorities, and then, by means of elimination, identify 3-4 companies that meet the most criteria (or the most important ones).

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By searching for the ideal, you run the risk of never finding one. This is another barrier that will stop you from entering the real market. Unnecessarily. You do not bind a broker for life - you can change it at any time.

#3 - Waiting for it to "fall"

This time the problem is directly related to trade. Did you find that after the analysis you decided that you will be playing on increases (ed. in the case of Forex, the direction is not important)? Surely. But did you enter the transaction right away, without hesitation? For novice traders, this is often not the case. We see the market, we have made an analysis, we have conclusions. Only our reaction is missing. Why? Because we are waiting for it to "fall a little." After all, we do not want to overpay. After a short time, it turns out that the planned direction is continued. But the expected drops were not there. We are left out of position, but with a sack of frustration.

Looking for the perfect entry point is the bane of the "thrifty" trader who wants to optimize every transaction at all costs and "not overpay", preferring to look for unique opportunities. Seeing a speeding train, he does not wait for a stop at the station, but for its return to the previous station. After a month, it turns out that the market is 1000 pips higher, and the biggest correction was 150 pips and 300 pips after our analysis.

Such situations teach that having a proven plan, it is worth to stick to it and not try to idealize transaction points at any price. Occasions have it to themselves that they happen very rarely. Otherwise, they would not be occasions.

#4 - Search for the Holy Grail

One of the most popular mistakes of novice traders. It results from fascination with markets as well as lack of patience and consequences.

As we enter the world of investment, we usually start reading about indicators, patterns, market levels, and other techniques. The next step is trading systems or complete strategies. Reading their descriptions, we rarely find there a sub-item "weaknesses" or "possible threats". The authors usually describe their systems in superlatives, boasting about them and considering them the best. Without experience, we are able to believe it. We are starting the tests and we are faced with gray reality. The confrontation of the selected system with the real market shows its disadvantages. After a few failures, we consequently start looking further.

After testing X strategy, we come to the conclusion that you need to find something better. Perhaps a unique indicator, an automaton, an entire strategy or simply a set of techniques that will be effective and will bring us the desired wealth. It's easy, fast and pleasant. That's how the search for the Holy Grail begins.

I'll worry you. More chance you will find st. Nicholas. If you want to find a way to earn at all costs, you waste a lot of valuable time and energy that could be spent on understanding the market, the mechanisms that create price, and developing investment methods that you can use in practice.

#5 - Excessive "activity"

"You have to play to win" - this password is known to everyone. Unfortunately, it comes from an advertisement for a totalizer where fate decides to win. It doesn't sound good, does it? I hear the opinions of novice traders who say that the basis is making transactions. After all, without a position, there will be no profit. Right. But it is good if these items are carefully considered, according to the rules we set and tested.

A common mistake is to make transactions immediately after launching the platform. We turn on MT4, a quick look at the platform - "OK, it will probably grow". So we buy it.

Risk calculation? Potential support or resistance zones? Target level of the transaction? The nearest macro publications? After a while, we think to take everything for it, but the transaction is already concluded. The chance that we will try to over-rationalize the decision we have already made is very large. Nobody likes to admit mistakes. Especially in front of me.

But our attention was overwhelmed by the fact that WE NEED TO TRADE in order to be able to EARN. The consequences can be very destructive. In the event of failure at the first transaction, we often experience the desire to quickly detach yourself. This leads to the opening of subsequent (usually ill-considered) positions. An unstoppable train to conclude transactions and the conviction that their more, the greater the chance of a profit, are the problems that require elimination.

Are you a forex beginner? Calm and balance!

You may be slightly consterned. In some points, I mention starting the first step to start working and not be afraid of switching to a real account. On the other hand, I recommend curbing your enthusiasm when entering into transactions. And this is the essence of this lesson - the market will not escape anywhere, but you must enter it fully ready.

Podsumowując:

1. Do not expect the impossible,
2. Do not look for ideals,
3. Focus on the market, not on catching opportunities,
4. Develop your own plan,
5. And act according to him.