Things That Make You Love and Hate Forex Trading

Posted on 19th Dec 2016

The Forex market can be a formidable adversary. Usually undercapitalized retail traders appear to be outdone as they take on global central banks, investment banks, hedge funds and market makers. Investors and traders love it, hate it, don't fathom it, or hang somewhere in between. Successful trading requires a relative amount of perseverance and grit to overcome the potential downside. This applies for the Forex markets that generously rewards winners and ruthlessly brings a trader's shortcomings to the fore.

Pros and cons

1.  The scammers: In the trading sphere there are constant lies being told to lure people and accrue selfish gains. Many people fall easy prey to spam ads and aggressive, glib-talking salespeople in the Forex markets.
2.  There are too many forex educators making unrealistic claims: It is highly likely that every time you are on the Internet, you see popups about the next best Forex indicator. But an indicator which "PREDICTS" the future? There are people who will see this and fall for the dream of an indicator which predicts the future and does all the work for you. It simply doesn't exist.
3.  Imaginary Forex Gains: Forex traders are consistently being taught the wrong things. And due to this a large majority continue to lose money.
4.  Free forex education is just not enough: There is hardly anyone who had a free education in Forex and makes money trading the markets. Merely reading a few blog posts and watching some videos won't make you rake in profits. It does not work like that.
5.  The facade of the stereotypical "day-trader": The illusion of the "day-trader" is something that appeals to many people simply because there's a certain perception of being some young and rich "day-trader" making millions and having fast cars which is not actually true. The reality of a day-trader is a guy who was sleep-deprived a night before because he was trying to trade the overnight session, now he's up in the wee hours trying to day-trade the next session. Many traders get hooked into attempting to become a rich day-trader largely because that's what they think is the socially acceptable norm or "uber cool", and it turns into them being glued to the charts every chance they get and probably not making much money (if any) either. This is not a healthy way to trade and certainly not how it should be done.
6.  Why Most Traders Lose Money-The Market is not a distinct entity, it is us: To rephrase, the market is a colossal feedback loop, showing traders (and anyone who views the market) a barometer reading of the social mood under which traders, and at a macrocosmic level the society is functioning.
7.  Disloyalty becomes a desirable trait: By displaying a consistent disloyalty to the market, you are open-minded and flexible to any price action that goes against you. It's this flexibility that allows the successful traders to pull a not-so-favourable position in an instant or even reverse their position if the situation demands it.
8.  Patience becomes synonymous with profits: Staying patient as a Forex trader is the number one formula for success. It allows you to trade only the best setups, but more significantly it enables you to be able to preserve your trading capital for when it actually matters.
9.  Profits are no more your top priority: Your ability to stay afloat should be your foremost priority. Because if you run out of capital, you won't be around to make the most of profitable trends when they do come along.
10.  Quality over quantity: With time and experience you realize that one or two favourable trade setups per month will suffice to garner good money. There is no need to trade many number of times in a month because quality will always trump quantity when it comes to trading.
11.  Being second is a good thing: The world of Forex is different. It isn't about "he who comes in first, wins". It's about your endurance levels and waiting for the market to make the first move and then adapting as a better trading stratagem.