I believe the reason why we all trade forex is to make profit from the financial market. But in the course of our journey in this financial market, we meet loses and failures; loses that we weren’t expecting. Some people end up losing more than they have imagined and most times including their deposit.
Sometimes our expectation can serve as a blockage in the path to our success, that why they (our expectations) should be kept in check. In this article we will look at “what are your expectations from the forex Market”.
Have you ever have the expectation to make profit from a trade only to end up having a loss and you decide to REVENGE TRADE which lead to further losses and in the long run hit margin call.
We will look at some of the expectations that traders have about the market and how it has also contributed in killing their trading account.
Scalpers Makes More Money
Many traders have the believe that scalpers are the only ones making money from forex trading and as such, many people have dived into the forex market with this strategy only to have their hands and trading account burnt. This one of the misconceptions that traders have and unfortunately, have set their mind to expect profit when they scalp the market.
Out of 10 scalpers only 3-4 are profitable and able to survive the tide in the forex market. Understand that they are lots of strategies out there which can give you a good flow of Profit.
Have you been to Facebook lately and see the outrageous return most forex marketers are claiming they can give their client on weekly basics? This has also contributed in giving forex traders an expectation to receive profits ranging from hundreds to thousands of dollars monthly. That is not only hoaxing but unachievable. I decided to write this article How to make $ 10,000 profit from $100 deposit in forex trading. In that article, I explained to traders that if you want to make that kind of return then it should be done using the law of compounding which very few traders can apply in there trading career.
Demo Trading is a waste of time
This is a wrong ideology that many traders still have and has cost them a lot of time and resources. Many still believe that demo trading is a waste of time. This is because most forex marketers usually give their client false hope on how they can make quick money immediately by going live on the market without proper training and orientation.
I advise traders to demo trade for at least 3 money, so as to be able to control the emotional trauma associated with making profits and losses.
Indicator Shows the Futures Price Movement
Many traders put all their hope on indicators; they believe it shows them the “future price movement”. This is a false information as indicators get there data which they use for calculation from the “price feed” that is the Open, High, Low and Close price on the chart. Most indicators lag (latency) that is, they reflect price changes after it has happen on the chart while the rest are the leading indicator which will show you events in the market before they eventually show on the market and almost at all times these indicators are 60% false -while the rest, most of the times are just mare luck.
There are many other expectations which people have about the market, that entice them to go into the market and when they venture in this business, it becomes clear that what they had hope isn’t what they are getting.
Let me give an example with two well-known traders’ warren buffet and Anthony Bolton. These two incredible traders aim for an average of 20% annually and most hedge funds target just 10% profit of their investment yearly, so I see no reason why you should be targeting a 100% of your little capital in a weekly basic.
In summary, forex is a lovely business when treated as one and when your expectations are set to the minimum level. I will love to hear your expectation from the forex market. Do comment below and like our FACEBOOK PAGE.