Many people have a very distorted concept of trading in the Forex market, especially the new players on the scene (whose level is all fair). But there are even experienced traders who are still constantly bemused by these expectations and their needs from the market. In general, most people have general expectations about what the forex market might offer them. They invest their time and money with these “technical methods” to add more zeros to their bank account statement. In this article we are going to learn what these common expectations people have about the markets, and I will walk you through a reality test of forex with the intention of keeping you away from the costly traps that have left scars on the faces of many of the traders who preceded you.
The full story of the “get-rich-quick” issue
One of the main problems in the forex industry is that it is based on a group of unscrupulous marketers, and because Forex deals directly with making money, marketers target your weaknesses towards “getting rich quick” and spread their claims about their product in Forex, and they bait you without any awareness or Debt until you think you can become a millionaire overnight.
Thus, the minds of most people are manipulated to urge them to pay any amount of money in exchange for helping them obtain the best solution to achieve quick riches, so what is done here is a kind of play on purely psychological desires, brainwashing people in order to push them to waste their money, and some marketing means In forex that I’ve actually seen very cunning.
People are spending their money to acquire these forex products as a result of promises to get rich overnight, and after they fund the programs with the necessary balance and let it run for a few hours, the account actually begins to take a loss.
Sometimes the marketers have performed their work professionally to the point that a person, despite actually incurring to lose a lot of money, still believes that this forex product is the magic bullet for getting rich quick, and leaves the program alone until the entire account is depleted.
These products are marketed in smart ways to put your money at risk, but the problem with most of these forex products that are marketed based on the urge to get rich quick is that most of them are likely programs that will make you lose all of your money you had to collect at the end of the day.
Unfortunately, most Forex trading products are fraudulent vehicles. In fact, the more software promoted is the get-rich-quick, the more likely the product is to be fake, as the primary goal of these fake forex products is to steal your money, and this is what is ultimately meant.
If you work hard in the markets, your efforts will pay off
One of the strange things about the market is that the rules you apply in daily life do not usually fit perfectly with Forex trading, and as a general rule in the job market, the more hard you work, the greater the return.
There are things like overtime. If you worked more than the hours allotted for work, you would be charged an amount of money as a kind of reward. And contracting companies often award bonuses if the project is completed early, which is very common in the construction industry. So these things have psychologically prepared us to believe that the more you work hard, the more you will be rewarded for your efforts.
People come with this mentality into the trading markets and think that “if a person sits in front of the computer, works hard in the markets and presses the buy and sell button all day long, they make more money.” What they end up with is their involvement in high-speed trading strategies that focus on quick entry and exit. From the market and opening a lot of small deals.
Forex trading depends on managing the balance between risk and reward. It is important to always keep the risk / reward ratio in a positive state. What I mean is that you are always looking for positive returns on investment. Is it wise to risk $ 100 just for a $ 10 gain? No, but you must risk 100 dollars in order to achieve a larger amount, say 300 dollars, for example.
Unfortunately under these trading systems for day trading and fast trading (scalping), the negative situation for the risk-to-profit ratio is such that the trader needs to open multiple deals at the same time to achieve a decent amount of profits, and with each new position opening, the risk to the account increases. Therefore, the scales are turned into very risky for the possibility of getting a small profit which is very dangerous.
What this leads to is that it puts the trader in a continuous state of extreme risk of erasing his balance, if things go completely wrong, and the stop-loss point is crossed in all open trades, the trader will receive a big hit, and the damage may be so severe that he may not recover from it. Start.
It is better to stop even a little and try trading with the longer timeframes; They are best (especially for beginners) even to try not to open more than one trade at once, while aiming for a higher risk / reward ratio. “Reducing deals is increasing profits” in the markets: By targeting only low risk, high profit deals and using smart money management, you will find that you are able to achieve much greater returns with more stability.