Forex trading is obviously a good profession but most of the traders have failed to make profit. Because they have tried to follow short cut methods to make profit. They want to earn big in a short span of time. Traders go for huge risk and try to make big profit. But I want to tell you that it won’t work. No doubt a trader can earn huge money by opening big lot size orders, he/she may able to make profit once, twice, thrice or for numerous times but it will not work all the time. At the end the account will be zero and this is not what we want from our forex trading profession.
Why we go for big risk?
One of the common reason for opening big lot size order is greed. When a trader gets frustrated by accumulating small profit he/she would obviously go for big profit. But remember that consistency is more important than making big profit in a single trade. No matter how much time it’ll require to make 1 pip but we must avoid any types of greed. When we give more importance in applying best strategies, automatically we’ll able to make good profit from every trade. Forex market won’t behave same way as we expect from it. Sometimes due to some reason (unknown) or with no reason trend may reverse in opposite direction. So it is better to trade with care all the time.
As a human we need money to live a better life. We need recognition from the society and we believe that only good amount of money can help us in this matter. These are emotions which drive us to take big risk into our trades. Once we control our emotion we’ll easily able to trade with low risk.
How to control greed?
As a human we keep some kind of desire or we expect too much from others. It is not easy for a trader to avoid greed. But it is not impossible at all to control greed, if we try a little then we can certainly able to control our greed to some extent. It needs a lot of patience and strong mind to control any types of emotion while trading. We must learn at first and practice in demo account for as long as possible. More we spend time in demo account more we’ll able to control any types of emotion including greed. Once we have enough experience and we understand the behaviour of forex market we’ll easily able to play within limits.
Most of the time we trade in a hope that it’ll solve our financial problems. This is evident that every trader comes to forex trading profession for the same. But it is not possible for a trader to earn from the first day. It is very essential to eliminate such types of thinking beforehand. Forex trading is a wide opportunity to every trader but it doesn’t mean we’ll able to earn from the first day of trading. If you’re a working person then you must give more importance in arranging things with your monthly salary. If you’re an unemployed person and also a newbie in forex trading then you must avoid greed and give more time in learning. Too much expectations sometimes bring some types of emotion and as a result we feel frustration when we failed to achieve the same. For a successful trading life we need to clear our mind from all types of greed, misery, frustrations etc. Take forex trading seriously and treat it as a career option. Even doctors, authors, teachers, scientists give more importance in learning so that they can be successful in their own profession. Same thing applies to forex trading too.
Every profession has its own dignity. So every professional respect his/her profession. If we really like our profession i.e. forex trading then we must try to know how it works. If we’re coming to this field just to gamble our money then I’m sure we’ll not able to survive for long. If you want to make a career in forex trading profession then you must give more time in learning. It may take long time (6 months to 5 years) to be more proficient in trading. We need to give more importance in practice. We’ve to avoid any types of greed because we know it will only bring big losses. We can only able to become a professional trader if we understand the value of learning. There is no short cut method in any profession including forex trading profession. If we need a long term career in forex trading then we’ve to give more time in learning. If we only believe in short cut methods then our trading career would obviously go short lived. Don’t look at others, you’re not here to compete with others but with your own. You need to find your potential, try to find your mistakes as well. I’m sure one day you’ll able to adopt forex trading as a main career.