7. The lower time frame that you intend to trade the more difficult it will be. I give you a simple example. The trading week includes five days, so trading on daily basis you should think 5 times faster than on weekly basis. Day, in turn, includes 24 trading hours, so you should think and make decisions 24 times faster than on daily basis. Now, imagine, what will happen if we turn to 5 minute trading. Should I continue? The conclusion is obvious – the short-term i.e. intraday trading is not for beginners. 8. Trying to get unreasonable gains leads to taking extreme risks. If you ever read Markowitz work, concerning equity portfolio management and structuring, you should know the simple rule – the greater the risk - the greater the potential yield. So, if you would like to get crazy profits, it means that you’re simultaneously taking massive, unreasonable risks. This definitely will lead you to awful trading performance and financial ruin – it’s just a question of time. If you feel an adrenaline buzz when you toss’ n’ turn millions of dollars with a trading account just around $10,000 and 500:1 fully used margin, may be you better visit Vegas. The odds off success will be better. If you treat trading as gambling – just don’t trade at all. This simple rule allows you to save a lot of money. 9. FOREX demands time, and sometimes a lot of time to reach a success. Forex is not an “easy bucks” adventure - its skills demand time to learn. Professional traders do make money on Forex, but it’s not a “piece a cake” as we’ve said in our Introduction chapter. Do not listen anybody, even they want to assure you in opposite thought. As you understand that if it would become really truth - everybody would be a millionaire now. There is a lot of time from newbie at least to profitable trader, and even more to real professional. Even experts sometimes meet a long period of losses. 10. Prepare to work hard. You can’t to exclude hard work, practice, discipline and diligence by any means. There is no shortcut or back door to success. Trade on demo, until you will find or create a strategy that you know as well as the back of your hand. In fact the trading strategy is a very personal thing. Find or create something, that will work for you and that you will feel yourself comfortable with and will be able execute it properly. P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them on the next page. Note: FPA ranks are earned in the battles against scam, not in the classroom.