No need to rush... Or about the reasons for the first financial losses on Forex
It is recommended to start Forex trading with demo accounts for beginners. And the work with virtual money should confirm that the trader has a workable strategy, which brings profit for quite a long time, usually 3-6 months.
But in practice beginning traders, after having worked on Forex market for about two-three weeks with demo accounts and having mastered a bit, hurry to start real trading as adults in order to start earning what is called Big Money at last.
They do not hear warnings of experienced traders that one must practice with demo accounts for at least four or five months. And not only practice, but also reach real, and most importantly - steady results in this virtual Forex trading. And they not only do not hear but also think that more experienced traders just do not let them take a big bite from this delicious pie.
But, statistics just confirm the sad trend that the vast majority of newcomers (about 95 per cent), "lose" their initial investment in the first trading session at Forex market.
And no matter how many experienced traders told about it, and one can find a lot of similar pieces of advice on the Internet, nothing can help. To all appearances, beginners tend to hope for notorious Russian "ovos". Or they believe that they should be the ones lucky on Forex market.
Reasons of frequent losses on Forex
Most traders are eager to catch their luck. After all, here they are, the big money! This is their ultimate victory!
Non-professional players believe that their money will instantly grow. And immediately and many times over. In reality, unrestrained pursuit of super profits on the financial market often turns out to be a loss. And instead of expected thousands of dollars in winnings, unprepared players see zero in their current accounts. They suddenly lose everything. How? How could this happen to them?
And yet they were shown, told, given examples, finally warned. But it is unlikely that new Internet trading adepts have realized that they are not the only ones who dream to get rich by Forex trading. That thousands and thousands of traders from all over the world want to win. And a lot of dealing centres and brokerage companies also see their profit in the money of traders coming to exchange trading. If everyone is a winner, who is a loser?
Is a broker always to blame for trader's losses?
Of course, someone from this army of traders, and in brokers' dreams everyone is better, must surely lose. After all, it was not invented by us that if in one place there is a gain, it is at the expense of the other place, where just the same thing is losing. That is why in Forex most of newbies bring their money for someone somewhere just to put it in their pocket.
Only those who have had an excellent theoretical training, a vast amount of knowledge and accumulated experience can successfully work and make profit here. Those who have patiently avoided boring trading on demo accounts and learned to make stable, albeit virtual, profits for at least three months in a row. Those who are constantly self-improving, learning countless facts and nuances inherent to this type of activity.
Many experienced traders say about the necessity for the beginners to be ready to part with a rather large sum of money. And the best thing is not to be stingy in the beginning of your way and find good training courses from the acknowledged masters of the Internet trading. That will pay off in the end.
But unfortunately most of them rely solely on their own efforts, squandering more and more deposits in trading, giving away much more money and nerve ending up with nowhere. Such players sooner or later come to think about professional education. So maybe it's better to think about it early so that in half a year or a year you could start getting good sums of money from Forex trading?
It is impossible to become a professional without investing in your education. And the sooner the trader realizes this axiom, the sooner he will have good luck in the difficult but fascinating world of trading on financial markets.