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Top 5 Forex Death Traps

Discussion in 'Company Articles' started by Mohamed Rabea, Jul 24, 2011.

  1. Mohamed Rabea

    Mohamed Rabea Recruit

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    It's a well known fact that success for new Forex traders is disturbingly low. Most new Forex traders think it's easy to trade and make money quickly, but they get hit by the cold hard fact that making money trading Forex requires a very extensive range of skills and experience that can only be earned through years and years of learning and trading.

    Lack of Experience

    Forex is like any other business in the world, it requires experience and hard work. There aren't any special reports or super smart software that can just suck pips and make you money in a few days. No matter how marketers all over the internet try to convince you that you can just use their secret method or robot for overnight success. They are so good at writing down a 50-page sales letter full of complete lies and outrageous claims just to try to convince you how easy it is to make money using their magical software only to get to your pocket and take your cash with a smile on their faces. Only few days or weeks later you realize that you've been scammed again.

    But I can't blame you, its human nature. People will always look for faster ways to make bigger piles of cash so blindly that they fall victims for such illusions.

    Unrealistic Expectations

    If anything sounds too easy and too good, well you guessed it… I am sure you are familiar with the term "if it sounds too good to be true it probably is". Most people are so greedy they are not just looking to make money, but they want lots of it and in no time! If you think like that I guarantee you that you will be an easy target for scammers. You should set realistic goals that can be achieved safely without risking your time and money. Like any other business you don't get unlimited cash in your first week unless you are selling drugs!

    On the other hand, the beauty of trading Forex is that you can make very good gains every month by taking advantage of leverage. No gigantic 100% returns every month, but a more realistic approach would be 10%-20% return monthly. With that said you should never risk more than 5% of your account in one trade.

    Falling For Overhyped Products

    The internet is full of Forex systems, Robots, EAs promising shocking results, only to disappoint hopeful traders. Those trading systems, cheap e-books and "Holy Grail" secrets are for the most part an illusion created by internet marketers with absolutely no experience when it comes to Forex. They are only good at creating a myth and over-hyped products with false claims to get their hands on your hard earned money.

    In other words, if it's an EA or a trading Robot just don't bother getting it even for free! It will be a waste of your time. Trust me on that one.

    Lack of Discipline

    Ever felt like you are more of a gambler than a trader? Even after long years of trading sometimes your emotions takes over and you start trading without any plan just to make up for a loss only to find yourself at the end of the day with a margin call and a blown account. Controlling your emotions is the hardest part when it comes to trading. It sure feels bad when you lose few trades and just go to sleep with a negative trading day. Not to mention how you feel tempted all the time to enter a trade that looks very promising regardless how much you are going to risk and without taking in consideration if that trade you are about to place complies with your trading style and rules.

    It takes a lot of skill to control your emotions and to accept the fact that sometimes doing nothing is the best thing to do.

    Getting Bad Education and False Information

    Learning how to trade the right way and figuring out the correct approach to trade could be tricky, be careful what websites you choose to visit and bear in mind that most of the information out there is deceiving. Always think twice before taking action. There are a lot of honest Forex traders out there with honest and realistic trading strategies and information but they are definitely hard to find. Please take your time Inspecting every word you read, talk to the traders and website owners before getting their services. See if they will ever get back to you and find out if they are just making everything look so easy and pretty or if they are real enough to admit the ugly truth about Forex trading. Keep that in mind before getting too excited about any system, product or service.

    Mohamed Rabea - Professional Forex Trader
    HyperSignal.Net - Forex Signals Free Trial
     

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