FOREX TRADING TRAPS !!
The only way to keep up with the latest about forex trading is to constantly stay on the lookout for new information. If you read everything you find about forex trading, it won't take long for you to become an influential authority.
I wish I was reading this a couple of years ago!!
It would have saved me a lot of money!
Well it might not be a lot of money to the guys who sold me their Forex trading systems, but it was to me. I spent thousands of my hard earned and saved dollars on Forex systems that promised big results, yet did not deliver for me.
Don’t get me wrong, some of the Forex systems work; I actually talked to people who did get results from the programs.
Unfortunately I was one of them!
Yes you read it correctly I made money in my first week of trading!
In Forex you basically trade long term or short term, I was doing the short term trading (a day or less).
Yes I made good money thousands of dollars, boy was I excited I was wondering how long had this been going on. Forget the 9 to 5 job that just gets you by, that pays the bills but you don’t have anything left over to live on. I was going to make a killing, retire, work a few hours a day and live the good life!
Everything was great for a couple of weeks then I lost on a few trades, no big deal I will get it back on the next one. Because I had made good money for a couple of weeks I "knew I would get it back".
Then I began to learn what really goes on in the Forex world.
Swimming in shark infested water would be safer than playing with these guys.
Sometimes little bites, then big bites that almost break you in two, yes sir these guys know how to get at you.
This is what happened to me.
The market would be heading steadily in one direction then all of a sudden reverse and take my position out; you guessed it I would lose money. The weird thing about it was that when I did not set my stop loss it hardly happened to me. (The problem with putting a trade on without a stop loss is that you have to watch the trade all the time in case the market makes a big move against you, very dangerous.)
What was going on?
Ok there is a lesson here, the Forex broker was playing games with me he would manipulate the price to stop out my position and take my money! I found that one out too late, but you need to take note there are a lot of crooks out there in the Forex World. These guys know every trick in the book and they have been doing this for years. I started a demo account with another broker and compared the price movements and that’s how I found out that my broker was playing games.
Once I knew their tactics I could change brokers and see if the next one did the same or not put a stop loss on and spend all day in front of the computer. Well I still had to work and pay the bills so that was not going to work for me and frankly I did not have a lot of money left in the account to work with.
I learnt something else during this period; you need to take all the emotion out of your trading. I found that difficult as I had made money to start with and as I am not a robot, making money to start with turned out to be part of my downfall, it clouded my judgement.
What I needed and it is what you need!!!
An honest broker that is happy earning their money from the spread they get for each trade, their commission if you like.
A system that get better than 50% winners and takes the emotion out of the trading!
I was determined to get this Forex thing working for me; I could see the potential I just could not get it working for me.
So I tried several auto trading systems, some that only cost a $100 dollars and others that cost me over a thousand.
The real cheap ones could get a 50% or better winning trade result but only in certain market conditions. If the market was not working the way they assumed I would lose (I was only using demo accounts for these, I have learnt a little bit since I started trading Forex) and all the gains made would disappear.
Is everything making sense so far? If not, I'm sure that with just a little more reading, all the facts will fall into place.
The systems that cost a lot more where complicated you had heaps of setting that you had to adjust depending on things like, time of day, market trends- steady market volatile market, the currency pair that you were trading etc etc.
You getting the picture? You need to be an analytical person or plainly put a rocket scientist to get it right. I not either of them so that did not work.
Frankly it was all too hard and too costly and I needed a break.
I never gave up on the Forex market I just needed to regroup and start a fresh.
A few months later I was looking at a website that promised results in the Forex market. My first reaction was oh yea I have heard that before, yet I had a look.
These days I know what I am looking for:
• An automated system, to take the emotion out of it.
• A money back guarantee, if they don’t have one then they do not believe it works, so why should I.
• An honest broker that works with the system, it not much good having a system only to find out your broker can't or won't support it.
• A broker that has reasonable spreads, the commission the broker gets on each deal. If the spread is to much it is hard for a lot of systems to make money.
When you drop a few thousand on Forex courses and systems and then a few more on Forex trading, it prompts a lot of soul searching.
A broker that does'nt deal against you, you win he loses- you lose he wins. Guess what happens in these situations.
When you drop a few thousand on Forex courses and systems and then a few more on Forex trading, it prompts a lot of soul searching.
Now you can understand why there's a growing interest in forex trading. When people start looking for more information about forex trading, you'll be in a position to meet their needs.
