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How to Know that Forex Is Not for You

10:55 AM Dec 13, 2019
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Trading Psychology

It is widely believed that anyone can trade on Forex. And it’s true. But there is another more important question: are you capable of reaching real success? Professional trading is something that is really not for everyone.

The title of the article might be a bit confusing. Today we’ll talk not only about the signs that Forex might not be right for you. We will also discuss what needs to be done to fix the situation in order to help you achieve your financial independence.

You Don’t Have Any Additional Funds

One of the first and most important rules of any risk management plan is that you should not invest money that you cannot afford to lose. If you ignore this rule you might get into an unpleasant financial situation, since on Forex you will inevitably suffer losses.

If at this stage you don’t have extra money, then postpone it for later. Proceed to study trading and practice on a demo account for now. In the meanwhile, you can gradually save money which you can later invest in your account.

You Simply Can’t Lose

The foreign exchange market behaves unpredictably. That is why no matter how good you are as a trader you will still suffer losses. Most novice traders leave Forex after the first losing streak as they don’t know how to cope with losses and take them too personally.

To make it easier for you to deal with such situations, use the following tips:

  • Learn to see only numbers in trading values, not money.
  • Accept the fact that losing trades will happen regularly. Only your overall result including both profitable and losing trades matters.
  • Learn to control your emotions. Keeping a trading journal might help you with that.

You Are Not Ready to Learn and to Work

If you jumped right into trading the first moment you’ve heard about Forex then you are doomed to failure. Trading in the foreign exchange market requires careful preparation:

  1. You need to gain at least basic knowledge in trading.
  2. You should choose your trading style, strategy, trading plan and acquire a reliable risk management system.
  3. It is crucial to learn how to analyze the market in order to make informed trading decisions.
  4. You should practice trading on a demo account before investing real money.
  5. Get yourself a trading routine, learn to clearly follow your plan.

If you are looking for quick and easy money then Forex is not for you. However, the foreign exchange market can give you financial independence. If you take the process of preparation and trading seriously then you have every chance of becoming a successful trader

You Came to Forex for the Thrill

Many people trade in order to tickle their nerves. The risk involved in Forex trading brings them pleasure. As a rule, it is common for such traders to make irreparable errors:

  • Overtrading
  • Opening trades without analyzing the situation first
  • Making decisions at random hoping for luck
  • Trades of revenge
  • Missing of potentially profitable trades due to their “unattractiveness”

Such financial decisions will not allow you to linger on the Forex. Make a good trading plan and follow it meticulously. In any case, the unpredictable behavior of the financial market will allow you to get your portion of thrills.

You Are Too Busy

If you don’t have enough time for anything then Forex trading might not be suitable for you. Due to the high volatility of the foreign exchange market your transactions will require constant monitoring. What can help in this situation?

  1. Choose a suitable trading style. On Forex, there are many strategies and styles and each of them requires a specific amount of time. As a rule, the longer your trades the less monitoring they require. Thus, if you have a lack of time scalping is not suitable for you. However, day trading and swing trading might become your solution. When trading these styles, you can check your positions just a couple of times a day.
  2. Make a schedule. If you are used to spending time on your main job, study or family, then you already know when you have windows in your schedule. Make an accurate daily routine where you include the time for Forex trading. Often, opening/closing of trades and their monitoring don’t require more than half an hour at a time. Moreover, a convenient daily plan will help you better manage other things outside the foreign exchange market.
  3. Use Expert Advisors. Forex technology has stepped far forward. Now you have the opportunity to entrust the bulk of trading in the market to trading robots. They will open and close the trades you need in time even without your participation. Remember, however, that Expert Advisors also require a little control, but I’m sure that anyone can find half an hour a day to do that.
  4. Do not trade during the news releases. At such a time, market volatility becomes crazy. If you don’t have time to constantly monitor your transactions, avoid trading prior, during, and right after the release of major economic news. You can try trading on the price action after the news.

Remember, that before you start trading, you will need to study Forex and build a solid plan. The more time you devote to this process in the beginning, the less time it will take you to trade after.

To Summarize

Yes, Forex trading is not suitable for everyone but this is only at first. If you are ready to work on yourself and devote time to training and trading itself, you can become a real successful trader.

Choosing a good broker, whose team is ready to help you at every step of your path to success, will also help you achieve your goals. Join FXCL today and feel the true support of a devoted company.

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morning star evening star figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex 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losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance
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terms Stop Loss news trading economical calendar major news release currency pair currency rate national currency trading journal trades profit/loss emotions news release positions size Expert Advisors platform trading robot cryptocurrency volatility day trading position size lot account types cent accounts Mini account ECN Copytrade ECN accounts swap-free minimum deposit order execution liquidity providers demo accounts real account low-risk trading EUR/USD economic calendar majors cross-currencies exotic currencies base currency quote currency quotes bid ask Brexit United Kingdom European Union GBP Euro GDP WTO price levels moving average 4-hour chart 1-hour chart bulls bears false breakout cross-currency USD price action pin bar trading inside bar trading hands off breakeven stop loss 50% stop loss pin bar high-frequency trading position trading swings breakout strategy trading style Entry order Take Profit hammer shooting star inside bar pinocchio bar head and shoulders harami risk to reward ratio trading calculator trader’s age emotion control stop-hunting false signal trading session New York session Asian session non-farm payrolls fed rates decision central banks mentor teacher Forex education Forex books candlesticks bonuses tradable bonus no deposit bonus deposit bonus cashback pending orders counter-trend trading risk-to-reward ratio 1-2% rule uptrend downtrend news releases slippage emotional trading stop orders limits orders trailing Stop correlation Correlation Matrix EURUSD EURJPY RSI Overbought/Oversold indicator doji morning start candlestick pattern liquidity London session gap requote US dollar greed excessive trading Expert Advisor trading instrument Twitter Trump euro Canadian dollar Japanese yen Mexican peso currency pairs Fed China economic news currency wars USA interest rates trade agreement H1 H4 D1 sell trade buy trade price level trading system COVID-19 coronavirus lockdown checklist Default mode network Nonfarm Payrolls intraday traders lot size Stop Out margin breakeven pip point entry price chart candles weekly candle daily candle engulfing candle Doji W1 fears money management trading signals Charles Dow Dow theory primary trend Relative Strength Index signals market noise trading volume oversold/overbought corrections candle M30 GBPUSD GBPJPY pending order fundamentals Interbank order Stop order Limit order Standard account Interbank account liquidity provider M5 chart gold XAUUSD Chinese yuan flat US Dollar Fed Interest Rates inflation level XPTUSD platinum XAGUSD silver USDCNY Chinese Yuan instruments swap trading hours Buy Stop Sell Stop Average True Range ATR range sideways range price level trading scripts Excel tables entry point equity balance applications highs and lows RSI Fibonacci terminal server proxy OS Windows XP self-trading Forex advantages gap trading Fibonacci levels USDJPY Buy Limit Cherry Blossom market cycle mark-up mark-down consolidation distribution long positions short positions double bottom triple bottom double top triple top pattern signal presidential cycle Elliott wave Kondratiev wave Forex terminology quote standard lot mini-lot micro-lot cross pairs exotic pairs counter-currency terminology Margin Call long position short position buy sell candlestick chart bar chart line chart range market channel high low ADX OHLC patterns profit level martingale aggressive EAs VPS demo account EA tester trading signal chasing the market clicking the button oil trading lot EUR cent account Forex mentor novice trader emotions control fear psychological level round numbers Key Levels indicator MetaQuotes iOS Android mobile trading mobile terminal VPS server financial portals day trader position closing short timeframe fast trading news site news portal FXStreet Investing.com Forex Factory ForexLive DailyFX CPI PPI economic indicators Non-Farm Payrolls monetary policy FOMC retail sales inflation rates program installation intuition apps ECN brokers market makers financial markets indices commodities stock metals trading robots Forex mentors confidence bias low-frequency trading set and forget end-of-day trading exit trade auto-trading OCO trailing stop auto-management competitive advantage partnership IB referral Introducing Broker Sub-IB EURGBP EURCHF Donald Trump Twitter exotics minors trading patterns wedges pennants triangles breakout trading range trading confident trading trading goals Japanese candles inverted hammer hanging man abandoned baby spinning top spinning bottom inverted head and shoulders trading figure trading pattern beginner mistakes unrealized profit/loss Forex scammers money managers overtrading Trader’s Cabinet MT4 trading styles exit point Forex myths currency bitcoin ethereum tether litecoin tick chart education European session cross currency GBP/USD GBP/JPY M15 intraday strategy American session USD/CAD M5 Bollinger Bands MAM investing high water mark currency market stock market cryptocurrency market japanese candles stars morning star evening star figures diamond divergent triangle symmetrical triangle reversal signal financial intelligence financial education long-term investing triangle ascending triangle descending triangle risk control stocks Forex mutual fund EUR/AUD AUD Australian Dollar Australia ECB RBA demo live live account spike bearish spike bullish spike breathing techniques meditation unusual trading tips useful habits nutrition intermittent fasting Three indians pamm mam expert advisors start-up capital business Forex business oversold overbought reverse signals 15-minute chart full-time trading discipline drawdown inflation devaluation IDR LAK export Russia regulations regulators Central Bank quantitative easing quantitative tightening Donald Trump Joe Biden coins indexes DXY ICO Mrs. Watanabe beginner trader carry trading young traders women traders productivity self-discipline rectangle sideways channel trend figure Alexander Elder John Murphy Jack Schwager limit order leaving Forex useful tips motivation on Forex expanding triangle 5 candlesticks signal confirmation loss control currencies Germany market execution instant execution taxes laws remote trading withdrawals time management British pound BoE unemployment rate interest rate breakout Sydney session Tokyo session disposition effect continuation pattern golden rule enter trade high volatility risk trading trading discipline trading strategies Forex risks trading risks systemic risks technical risks force majeure criminal risks self-education self-study professional education Forex forecasts partnership program Forex bonuses Forex contests self-employed trader bars harami cross engulfing belt hold sandwich piercing line dark cloud cover marubozu three black crows upside gap two crows multitasking wedge figure trading sessions major trend million financial literacy budget goal setting Forex resources Myfxbook useful tools account analysis account monitoring trading analysis economic sentiment consumer price losing streak perfectionism consistent profits starting capital initial investment market psychology japanese candlesticks PAMM trust management money manager holidays market sentiment CHF CAD Great Britain pound Swiss Frank reserve currency averaging morning routine initial capital potential profit reverse pattern rounded bottom rounded top saucer inverse saucer IB Program IB Commission Sharing reversal patterns deposits payment methods payment systems local transactions trader’s block market balance