What is the first thought that attracts people to FOREX trading? The magic promise of making money fast and easy and being able to live a life of luxury. Maybe it is only the desire to quit a boring and demanding full-time job or to earn a little more in order to pay off all one's debts and thereafter retire in a more comfortable financial situation.
Prices go up, and then they go down. It seems easy. Besides, there are a lot of success stories, real or not so real, of millionaires who got their fortunes through currency speculation. All the glamour and hype built around the financial world are amazing!
Then you open your first account, probably test the waters a little on a demo account, but what you really want is real money. Practice accounts are most often left aside and seen as boring and useless for your immediate purposes. You don't even bother to understand what all those "technical indicators" on the trading platform are for. You just need to know where to click for buying and selling—that's all.
So there you are, clicking away on your path to total financial freedom! You take trade after trade, risk after risk. You probably don't even use a stop loss! You become overconfident and start risking greater amounts of money to accelerate its multiplication. So simple it is! The price goes up, you buy; the price goes down, you sell. What could go wrong? If you fail to plan, then you have planned to fail. With this attitude and mind-set, you will guarantee yourself failure, not just in trading the FOREX but also in life. The good news is that all you need is a little knowledge, and with that knowledge, you can begin to see what all the fuss is about, for then you will graduate and move up to the next floor.
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