| 1) Greed is probably one of the biggest dangers to | | | | in your trading account.b. The fact that you are risking |
| successful forex trading. | | | | your own money. |
| The possibility of the big winning trade that will make | | | | An old horse trader once said to me that: You learn |
| them rich is always looming in the mind of the novice | | | | the most about buying and selling horses when you |
| trader and experienced trader alike. Many people look | | | | start trading with your own money. The same is true |
| at forex trading as a get rich quick scheme rather than | | | | with forex trading. When you are trading with a demo |
| the legitimate business that it is. They have unrealistic | | | | account which allows you to trade in real time but with |
| expectations. There will be times in your trading career | | | | fake money,you don't think the same way that you do |
| that the lure of the big payoff will tempt you. You will | | | | when you begin to trade with real money that is yours. |
| have your strategy in place, your trade set up, then a | | | | How do you overcome the fear of losing your own |
| greed attack will set in clouding your judgment. If you | | | | money. Simple, only trade with money that you can |
| want to be a successful forex trader you must learn | | | | afford to lose. In other words, trade with money that if |
| to overcome greed and not seek the "home runs" but | | | | you lost it would make no difference at all to your |
| learn to follow a strategy that over time will regularly | | | | current financial life. That is why it may be best to start |
| bring you small but consistent wins and growth of your | | | | with a mini account that allows you to start trading with |
| account. | | | | as little as $300.00. There are even brokers who offer |
| 2) Fear | | | | "micro accounts" that allow you to start with $25.00. |
| Because of fear, people look for the perfect forex | | | | 3) Lack of patience. |
| trading system that will guarantee the most success | | | | Along with greed and fear, lacking patience will also |
| with the least amount of risk. Fear will cause a trader | | | | sabotage any success you may have as a trader. |
| to think irrationally. His judgement will be clouded. It will | | | | Why is patience required? Because forex trading is |
| cause him to: | | | | boring. It is not glamorous or exciting. It requires |
| Take trades when he shouldn't | | | | patience to wait for the right trade to set up. The |
| Not taking ones that he should | | | | problem is that a lot of traders are anxious to make |
| Exiting too early or at the wrong time when the | | | | money now. They then force a trade when they |
| market is going against him. | | | | shouldn't in a effort to outsmart the market. But the |
| What are the causes of this fear.a. Fear of the | | | | market will go its own way regardless of how smart |
| unknown. Specifically, fear of not knowing whether a | | | | you are. |
| trade will work out or not. What is the remedy? | | | | The bottom line is: If you want to be successful in |
| Having an effective forex trading strategy you will | | | | forex trading, you must be patient, stick to a certain |
| have confidence that in the long run it will work out. | | | | strategy, practice good money management,and |
| You may have a few losses but you know that you | | | | banish greed and fear. If you do this you will have long |
| will have more wins than losses resulting in an increase | | | | term success as a forex trader. |