Trading is a mental game to a large degree, in which illusions will ruin traders confidence.To get more news about
WikiFX, you can visit wikifx official website.
1. Illusion of windfall profits
In the hope of using a sprat to catch a mackerel, many traders apply
leverage to their investment. Such a practice, however, could trigger
huge losses once the market moves against them. Its better to look at
returns on a risk-adjusted basis.
2. Illusion of Holy Grail
While some traders hope to speculate on the market by some kind of
analysis or event, such as a certain pattern or indicator, the fact is
market trends are unpredictable. The Holy Grail simply does not exist in
trading.
3. Illusion of professional help
Some novice traders are eager to consult experts about trading
opportunities or ways to get their money back. Unfortunately, most
available “experts” just try to con them out of money. Traders should
make careful judgement.
4. Illusion of EA
An Expert Advisor (EA), commonly known as an intelligent trading
system, could automatically execute trading strategies. But personal
trading experience will be more reliable as there is no 100% accurate
strategy.
5. Illusion of “market participation”
Many novices regard the market as full of opportunities, but only with
strategies best suited for the market can they distinguish
opportunities from traps.
6. Illusion of manual stop
Some newbies, who have been aware of placing stop-loss orders, find it
difficult to calculate and set the security position. It will be too
late for them to set a stop loss in the face of market swings.
Download WikiFX (bit.ly/wikifxIN) to get lessons from experts who have traded forex for over 20 years.
