Realistic Forex Trading Goals
I remember the first day I started trading forex like a tsunami like event. I had gotten this idea that I was going to be a millionaire trading forex within 6 months and to prove it I funded my account with $3000 .It was FXCM as the broker .At that time that was supposed to be the best broker.
I had opened a full lot account and was trading 100,000 units. After all if I made 10 pips I’d be making more in a day than I did where I was working. I bought the british pound as I had been told by the sales person that the pound is very good and will go up. I didn’t know what going up meant but I knew it was a great thing. So I placed my order one lot of gbp buy. For a full hour I was just staring at the broker platform.You know fxcm platform is very pretty and makes some beeping noises. I had not been told that normally very few moves happen at 4pm .So all I saw were 10 pip range moves. So when my account will go less 10 pips, I’d close the position. Then after 2 minutes the price was going up again and I’d buy. Another 10 pip range move against me and I’d close my position. Suffice it to say that after 1 hour I had placed 12 trades and I had lost $1200.
My wife wasn’t very happy but I convinced her I knew what I was doing. I had forgotten the cardinal rule in any business venture. You have to set realistic trading goals. By morning my account was $300 and I had learnt that you can lose all your account in one trade. Why do novice traders believe that they can make a killing in the forex market? Setting realistic goals is essential . The problem of not setting realistic trading goals can be hazardous to the traders pocket.
Results of not Setting Realistic Trading Goals
- Not believing you can lose. Believe me you will lose once in a while.No one has yet to have a none losing trading account.
- Overtrading. Because you have no trading plan,you trade on a whim or after you read this blog and see that you can make 100 pips a week.
- Risking too much. This is the biggest problem with traders. Please never risk more than you can afford both in your trading account and also per trade.
- Blowing your trading account.Don’t fret too much, you will not be the only person to blow their account.However it would be advicable not to do it too often.
- Being disappointed and discouraged.
- Having a very unpleasant trading and personal life.
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- The Best Forex Trading System (1.000)
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- The Dangers of Backtesting Forex (RANDOM - 1.000)
Filed under: Forex Trading
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thanks NIA for sharing your good advice, damn $ 3K was very big amount of money 8:
how do you do to make yourself not affraid to jump in to market again after blowing $ 3000? I’ll bet you must be rich man, but that is forex game. high risk and high return.
Mr.Lopez
It is not easy but you have to jump in.3k is not money I know of the former owner of this site who lost more.
I am not a RICH man in other peoples thoughts. I found out that I can do well with a simple goal and money management.I don’t have to kill myself. 50pips a week is good enough for me to save me time to do other things.
Forex is high risk about high return depends on you.
The purpose of this site is to show how you can just be mediocre and still make it .
I am sorry about this week. I didn’t post alot and never answered any emails but I will try to improve.
I am going to start with a simple forex experiment in the morning. And I wish everyone good luck
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However not all forex robots work, if you’d like to know more come visit us on out site.