Forex trading is good since you get to make money from the comfort of your home. All you need are computer and good internet connection, and of course - MONEY - as your capital.
Every day, more and more people start working from home through the internet. But Forex is a very different business. Forex trading, though can be done at home, is not actually an easy way of making money but it is a great business that can augment your wealth.
To make money with Forex, it is not enough to know the techniques and experience, otherwise you lose more than what you make. Your trading strategies and experience don't work if you don't have the - Proper Mental and Psychological Condition. This last factor is very crucial since most traders lose their money mainly because of the lack of this factor.
So what then are the kind of people that cannot make money in Forex?
1. Impatient People!
Trading Forex needs a lot of patience. Time to time the markets don't form any trade setups, and to those who cannot wait, they start taking wrong positions and ended up losing their money.
Your financial situation can be related to your impatience. Remember, you cannot make money through Forex when you "have to" make money. You need to have a stable and solid decent income and peace of mind before you can trade Forex and make money from it.
2. Greedy People!
In trading Forex, greedy people will definite just lose their money. Greed causes you to over-trade and enter the markets even when there is no good trade setup. It also causes you to hold a position for a longer time and not closing it at the right time. As a result, you lose.
3. Fearsome People!
Generally, fear is the biggest problem and obstacle in all businesses especially in trading Forex. Fear keeps people to wait a lot and miss the opportunities. And when they try to overcome their fear, they tend to take wrong directions and lose their money.
4. Emotional People!
Forex works according to scientific rules and technical analysis. Forex traders use indicators and signals to decide whether to buy or sell. So if you trade according to what you feel then Forex trading is not for you.
Thanks for reading and Happy Trading.
I couldn't agree more with these tips here on making money with Forex. I played Forex for about a year and made some of these mistakes early. When it comes to being greedy....folks, make sure you set your lot sizes small. If your lot size is set between .50 and 1.0. You can win big if your on the right side of the trade but if you are wrong, you will lose big! Take it from someone who has made this mistake.
Thank you htpstock for sharing your thoughts. Great piece of advice.
I hope you can find time to support and follow me. Thanks