The top 5 wrong thoughts about forex.
I have been in Forex for quite a long time now, and I have noticed a lot of things, especially what starting Forex Traders think.
Here are a few things that I have noticed that is completely wrong.
And when you are doomed to fail in the forex business.
1. With forex trading you can get very rich very quickly.
Okay I really hear this very often. People come to me and ask if they can be financially independent within a month.
They think that they can immediately earn a lot of money with the right strategy and that everything is only very beautiful.
But let me help you out of that dream, if it was all that easy, why isn’t the whole world successful in trading forex?
Why didn’t anyone think of it before when it really is such an easy way to make money?
The truth is that you will probably lose a lot of money before you start earning money with forex.
Forex is hard work and with just a good strategy you are not there yet.
You need good risk management, the right mindset and, not unimportantly, a PLAN!
So if you are a person who believes in “professional Forex trader within 7 days”
or maybe “From $ 100 to 1,000,000 in just 1 month trading Forex” I have to disappoint you that is not realistic.
2. It’s oke to move or not using a stop loss at all.
What’s wrong with you? No really what’s wrong with you?
Why won’t you use a stoploss or why would you move your stoploss if your trade turns out to go the other way?
I assume you want to use a good risk / reward?
Then I tell you now if you do not use that stoploss or keep moving, you will never make it at all in the forex industry.
Rule number 1 in forex is then I think you should keep your losses as small as possible!
You are you going to move your stop loss and then?
So it can still hit your stoploss with a high probability and you will lose even more money?
Please stop doing that and stick to your plan!
3. Binary options is the best way to get rich in the forex!
No no no. Do you want to gamble? then go to the casino!
Binary options is just guessing which way the price goes.
Seriously, but no meaningful analysis can be made.
If you are lucky you earn money, but if you are not lucky you can just lose all your capital.
I am therefore annoyed by all those fake ads in binary options.
Binary options is not trading but simply gambling.
My advice is to read about it carefully before you get involved with something like that, please!
And don’t start with Binary options if you really want to make forex your job.
4. You can easily do your analysis on an M5 time frame.
Sure you can do an analysis on an M1 or M5 timeframe.
But I don’t really know anyone who is really successful with that, at least not over a longer period.
Really seriously you make an analysis the best on the higher time frames these are strong.
Use the H4 and the H1 or even the daily you can use.
Believe me if you let go of these thoughts you will get very far. Never forget the higher time frame is the key for a good analysis!
5. The more indicators you use, the stronger your analysis!
Oh yes really? Sometimes I see charts, well, maybe I should call it paintings with dozens of indicators.
I really wonder if they can still see what they are doing.
I mean can you work well in a messy office?
Or are you more easily distracted from your work? I certainly do!
So cut it! Keep your charts clean and simple.
Make sure you keep an overview of what exactly you are doing.
See trading as reading a good book, a book that is fully scratched is no longer readable right?
Want to know more about trading in forex / trader mindset or do you want to join the forex group?
The forex group is mainly English!
Please contact me so that I can explain you much more about what we have to offer.
And all your questions can be verbs.