If you ask any trader how they place a trade, you will find one answer is common. The answer is they all place their trades with their mind. They only give importance to their mind and they trade on a hunch. It is the guessing or prediction that comes to your mind without any analysis or strategy. The human mind is very hard to explain and we also trade on a hunch sometimes. When it is wrong, people can hardly stop themselves and it results in losing money. This article will tell you why you should not trade with a hunch. Though it may be tempting it is bad for your career development in Forex.
Learn to trade properly
The first step is learning. If you don’t learn the proper way to trade, it won’t take much time to lose your investment. The professional traders in the United Kingdom always suggest that rookie traders trade with demo accounts. Demo accounts will give you the perfect environment to learn from your mistakes. Some of you might not understand how this market works but this is where you need to start seeking help from the experienced traders.The experienced traders can easily guide you and help you to develop your skills in the spread betting industry.
Being a new investor, you should also look for professional Forex training program. By taking the proper training you can easily develop a simple effective trading strategy. Instead of using your real account start trading the market with the MetaTrader 4 demo account. By trading the market with the virtual dollar you will eradicate the chance of losing your investment.Unless you can comfortably trade in the demo environment never trade the market with real money. Consider the demo accounts as your practice field.
What good is your mind?
You are not a saint who has achieved sanity from heaven. You are a trader like us who want to make some profit at the end of the day. Do not overestimate yourself and get back to reality. It is only possible in the movies where big brokers and professional traders make a fortune by listening to their hunch. If you watch the movie backward, you will find that they have a long history of trading before getting this fortune. The only thing that your mind can do is perplex the trading process and makes it difficult for you to understand.
A human mind can be deceptive and that is why you need to analyze and use the news and information about the market. We can give you one simple example that will clear your doubts. When we were small, we used to rely on our intuitions when we cannot figure out an answer. If the class is telling the answer is two, our mind keeps saying the answer might be one and we go for our own choice. It was only after the result we found out that our mind tricked us and made us believe strongly in our wrong answer.
How do professionals traders understand the trends in a second?
They have spent years of their lives trying to understand the volatility and they can tell the right time to trade by looking at the chart. It does not mean that they are trading with their predictions. Their analytical power has increased and they only need moments to know when is the best time to trade and how to plan the strategy. If you work consistently and practice hard, you can also reach their level and make a profit in the long run. They have achieved wisdom and it does not come freely. They have paid the price with their knowledge and life to achieve the skill needed to trade effectively by looking at the chart. Most importantly, they know how to trade the Forex market with strict discipline.