1.Forex is Not a Get Rich Quick Opportunity

Today My Article Is About Forex Mistakes Which I Do Not Know When I Was Start Forex Trading But You Will Know About It Before Starting Forex.

Everyone comes to the Forex market for a reason, ranging between solely for entertainment to becoming a professional trader. I started out aspiring to be a full-time, self sufficient Forex trader. I had been taught the Perfect' strategy. I spent months testing it and backtests showed how I could make $15,000-$25,000 a year off of a $5,000 account. My plan was to let my account compound until I was so well off, I wouldn't have to work again in my life. I was dedicated and I committed myself to the plan 100%.Sparing you the details, my plan failed. It turns out that trading 105K lots on a $5,000 account is not very forgiving. I lost 23% of my account in 3 weeks. I didn't know what hit me. Something was wrong. Luckily, I stopped trading at that point Then I spent the next couple of years working with traders around the world and continued to educate myself about the Forex market. It played a huge role in my development to be the trader I am today. 3 years of profitable trading later, it's been my pleasure to help people become successful or more successful traders.


The point of me telling this story is because I think many traders can relate to starting off in this market, not seeing the results that they expected and not understanding why. These are the 2 things I wish I knew when I started trading Forex.

Contrary to what you’ve read on many websites across the web, Forex trading is not going to take your $5,000 account and turn it into $1 million. The amount we can earn is determined more by the amount of money we are risking rather than how good our strategy is. The old saying “It takes money to make money” is an accurate one, Forex trading included.

But that doesn't mean it is not a worthwhile endeavor; after all, there are many successful Forex traders out there that trade for a living. The difference is that they have slowly developed over time and increased their account to a level that can create sustainable income.
I hear about traders all the time targeting 50%, 60% or 100% profit per year, or even per month, but the risk they are taking on is going to be pretty similar to the profit they are targeting. In other words, in order to attempt to make 60% profit in a year, it's not unreasonable to see a loss of around 60% of your account in a given year.



2. Leverage Can Cause a Winning Strategy to Lose Money

This is a lesson I wish I had learned earlier. Excessive leverage can ruin an otherwise profitable strategy.
Let's say I had a coin that when heads was hit, you would earn $2, but when tails was hit, you would lose $1. Would you flip that coin? My guess is absolutely you would flip that coin. You'd want to flip it over and over. When you have a 50/50 chance between making $2 or losing $1, it's a no-brainer opportunity that you'd accept.

Now let's say I have the same coin, but this time if heads is hit, you would triple your net worth; but when tails was hit, you would lose every possession you own. Would you flip that coin? My guess is you would not because one bad flip of the coin would ruin your life. Even though you have the exact same percentage advantage in this example as the example above, no one in their right mind would flip this coin.

The second example is how many Forex traders view their trading account. They go "all-in" on one or two trades and end up losing their entire account. Even if their trades had an edge like our coin flipping example, it only takes one or two unlucky trades to wipe them out completely. This is how leverage can cause a winning strategy to lose money.
So how can we fix this? A good start is by using no more than 10x effective leverage


I Hope , My Article Will be Be Help You To Avoid These Things Before Trading
Translate to English Show original