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Newbies
- Over Excitement: When one is new to something, there is this excitement to try it out. Even trading with a Demo account, there is this belief that one is very good, simply because their first set of trade is coming right. Therefore, they become very much enthusiastic to open a real account, which eventually teaches them the real-life lesson.
- Lack of a Mentor: In everything in life, there is a need to have someone who will guide one through. Someone more superior, who is much more experience in that particular field and can hold ones hand to walk on the sea. In a case where one lacks a mentor, the probability of getting lost and drowning is very high.
- Lack of Deep Knowledge: There is a need to get enough knowledge before attempting to enter into the ocean of Forex. Most newbies lack this very deep knowledge and, in the end, get eaten by the beast of the sea. Shallow knowledge is not enough
- Over Confidence: Most newbies do not know that in order to open a trade there is need to visit the three pillars of there market.Having the impression that Technical Analysis is more important or fundamental Analysis is more important or Sentimental Analysis is more important is actually overconfidence.
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- Lack of Research: Some newbies believe that once there is someone giving them a signal, that is all. They forget that it is important to see things their own way before attempting to open a trade. Personal research is a tool to back up whatever one sees or receives from someone else.
- Small Accounts: Most newbies want to use $100 to make $10,000. I laugh at this. They want to make instant money. They think trade is a getting rich quick scheme. They do not know that it requires big funds with enough knowledge to be a trader.
- Lack of Primary Source of Income: This can not be emphasized enough. There is a need to have a primary source of income, at least as a beginner in forex. This is basically because you have to be convinced that a trade will come before even opening it. Sometimes, to get this conviction can take several days, to weeks, to months. And with this period one has to continue living a normal life.
In conclusion, trading is not a hobby. Trading is a lifestyle that requires continuous learning with a non-stop mentality.
Note: No expert trader, Only trade what you can lose
Thanks for reading