1. A broker is not that important. 90% of them are fine so use whatever one you are comfortable with. I use CedarFX as I use Bitcoin to deposit and withdraw and it is very quick, also the tree planting is good. It all helps.
2. Social media “gurus” often don’t actually trade themselves and make their money conning the vast majority of people coming into trading looking for quick cash – don’t get caught out!
3. Nobody can give you a ready-made strategy and then send you off to start making money. A strategy is something personal to you in terms of time, risk tolerance, psychology, speed of the market etc. Take bits from different sources and then take the time to formulate and test your own strategy that fits your own parameters. There is no “one-size fits all” in trading.
4. Trading of any type is NOT A GET RICH QUICK SCHEME! It takes time for the above reasons to first learn the basics and then formulate a strategy, test it thoroughly and implement it.
5. Set achievable goals – when you first start break even at the end of the month might be a great target for you and that is fine. Not losing long term is priority number one to protect your capital. Don’t compare your 1000hrs of practice to another person’s 10,000hrs. Be better than you were 6 months ago and focus on that.
What else have you all. learned in your time trading?
Honestly social media is full of these types. The issue is there are so many sharks capitalising on the pandemic and seeing so many out of work and desperate. They sell forex as something that is as easy as opening an account and money just floods to you when we all know the reality is quite the opposite!
Forex experts have long identified the causes and manifestations of common mistakes made by novice traders. The two main reasons for these mistakes are greed and fear.
Beginners very often close trades too early, seeking to lock in small profits. This is fear. As a result such trader often misses an opportunity to make a really significant profit on his deal. The other extreme is when a beginner in pursuit of super profits does not close the transaction against all forecasts and against the market trend. This is greed. As the result a profitable deal goes in the red.
A fairly common mistake - not wanting to fix the loss, the trader holds unprofitable transaction in the hope that the market will change in the opposite direction. Such tactics often only increase losses.
One more common mistake is trading too aggressively. Many beginners start to open transactions with the whole amount of their deposit thus exposing themselves to maximum risk.
Good thread! I did not want to start a new thread as im prob. the millionth to post this.
I have taken a consistent loss on VIX these past 2 months, with gains on other stocks/ETFs. I am not sure if emotion or not but I am considering pulling out of VIX and move back in in about 2 months for hedging.
Would you leave the money there (assuming you believe a correction is coming)?
The most important thing that I have learnt is being too emotionally invested in a trade can lead you to make ill-informed decisions that ultimately have the potential to cause financial losses - whether that’s being overconfident and making risky trades or being under confident and missing out on potential profits.
To add to my original point about trading taking time - I think a big mistake many make is that they blindly go into using signal services out of a desperation to make money without consideration for what type of trader they are and how much time they have to dedicate to trading. It might be a scalping strategy but they can only commit to swing trader lengths of time at the charts and this means they end up missing winners and thus increase the variance of their results.
Glad you added the extra. It is no use giving out advice without looking at what the problem actually is. People are turning to forex and more so crypto trading to "make money" the idea of enjoying it and being interested in trading take an absolute back seat in this day and age. People are risking and losing a lot, the % of retail investors that lose all their money is only going up, never down. Trading is more than risky, if you are in it for the wrong reasons then prepare to lose a bunch of times.
Thanks for taking time to try and educate these guys where you can, not that many will listen
I like this mate, its spot on and hits home. Like you said about brokers most are fine, I just compare what they offer to better suit my trading style or strategy, be it wether I need higher leverage, or be it more crypto on offer. And even then I'm still currently using at least 3 or 4 different brokers regularly as I like tontake advantage of perks one will offer but not another.
Don't get me started on the gurus.... most are egotistical douchebags to out it as politely as possible. and as you say only a few trade themselves. Most have an income from selling some form of course that 9 times out of 10 is all freely available information, or some form of vip signals group, so really don't need to trade themselves.
What iv learnt the most is to trust my own analysis. Spent so much of my earlier years following another persons strategy assuming as they could realise a return they must be right and their analysis was superior to mine. I realised not all analysis taken place is fully portrayed when it comes from another source
I think the issue is also get rich "easy". You can get rich quickly, depending on how you define quickly. 10 years is quick in a lifetime. But as you say people don't even want to put the work in. Even it was arbitrarily quick. Money is easy to part from the lazy and desperate.
Definitely agree with your third point @sebking1986 I was way too impatient at first and completely underestimated just how much time, patience and knowledge it takes to even just grasp the basics. I suppose that also goes for your fourth point, too!
It's a profession. And a hard one to really grasp and be successful at. As such if you can, and have access to the capital it can be a well paid vocation. But that doesn't just land in the lap of those not willing to work for it. I seriously don't understand the arrogance of those who think it might be different than that.