Novice Traders and Three Hurdles They Face Trading Forex
Newbies are swarming in Forex trade to check the validity of the myths that Forex trade is game of luck and you do not need to do much except investing money. Well, definitely these are just rumors. This is just a bunch of lies. Actually Forex trading is a time consuming career that demands certain skills of trading. The conditions in Forex trade are not always favorable for traders but a skilled and experienced trader can turn the tables in their favor even in odd circumstances. Being calm, relaxed and patient even in the time of chaos is necessary for Forex traders. First of all, the newbies need to develop such kind of personality if they want to survive and sail well in the storming sea of currency trading.
Hurdles for Newbies:
Newbies face three major hurdles in adjusting to ever-changing scenario of Forex Trade. Let’s discuss these hurdles.
The first hurdle that a newbies has to face is issue of adaptability. Nothing remains constant in Forex trade. You cannot use the same strategies in all conditions. You need to change and adapt to your current scenarios. You need to have flexible personality. Being an orthodox, traditional or stubborn person does not serve well in Forex trade. You have to understand that it is a serious and complex profession. You cannot just stand there with folded arms if the condition is odd and against your will. You need to learn to deal with unexpected situations and be adaptable.You should be able to turn the lemons thrown at you into lemonade. This is what called’Adaptability’.
2) Game Plan:
The second major hurdle in the path of newbies is a lack of a sound game plan. Every business and career demands and requires a proper game plan. The Forex trade is no exception as well. Newbies enter the Forex trade and believe in a utopia that everything will go in their favor. But when they face odd circumstances, they panic and lose their money because they do not have a game plan. As they do not know to deal with the changing scenario, they feel disappointed and quit Forex trade.You cannot dive blindly or else you are going to lose your money. You need to grasp its environment, key factors, basic concepts, major strategies and its past performance before diving into this fierce ocean. Thus develop a sound game plan and set goals according to your requirements and capital. Then follow it smoothly.
3) Track your moves:
Last but not the least the third major hurdle faced by Newbies is not tracking their moves. Newbies take it for granted. They do not maintain a journal to track their moves. Lack of maintaining a journal is a great obstacle in their way of progress. In case of a loss you can easily track your mistake through your journal. Similarly it can motivate you even in the time of distress, if you review your journal frequently. But newbies do not pay attention to this major factor. Therefore be sincere to your career and maintain a journal to keep track of your moves.