There are many things in this world I observe and never fully appreciate.
Take for example embroidery and architecture. I have seen buildings created over a process of time and know the basic elements that go into creating such structures, but if I was ever to create such a thing myself I know I wouldn’t have the slightest clue. The same goes for embroidery: I admire the finished product, but as for creating a piece myself I wouldn’t have the slightest clue on what to do or where to start.
This is true for many other things in life: I see them, but I never take the next step in finding out more about it.
So what draws someone to go from a simple observer to taking the next step and becoming more involved in an industry? Especially in reference to the forex market.
Do people focus only on the high returns?
Is there something people should see, just as people don’t tend to see the inner workings of a building? Or the way a craftsman embroiders their work?
In forex trading I believe there is much hidden from the new observer.
See, forex trading should be treated no different to any other business venture and although I personally have never created a physical business I know from the many successful business people I’ve read about a common theme for why they knew they were successful was that they started with the end in mind.
If we apply this same principle to forex trading we start by purposefully deciding to be in the business of forex trading. This may have come as a rather obvious fact, but many people fail to realise that they actually have the power to make the decision on whether to stay or go in the forex market.
No building ever finished from everyone walking off the job! An embroidered quilt left half finished is a mess!
Same applies with forex trading. Most generally wait until their account makes that decision for them, and then they have no decision but to leave!
So how do you know whether you should stay or go?
Well, ask yourself the following questions:
How much am I prepared to lose in the forex market?
With the amount of capital you will be investing in the forex market determine how much you would be prepared to lose before calling it quits - or, at the very least, STOP trading for a lengthy period of time.
Not only should this question reflect the amount of capital you originally place into your forex account, but also the amount of capital you gain through profits - yes, that’s right, the profits you make actually IS your money, so treat it as you would a wage or salary.
How much is needed to keep you trading?
Most people fail to understand that there are many ways to make good money in this day and age and forex trading may not necessarily be the best way for you.
Time is something we can never take back, so we need to ensure we use our time the best we can. If our forex trading fails to meet our expectations then we can either neglect it completely, or treat it as a hobby (i.e. giving it limited time to other activities).
Why persist in pursuing something when the returns are simply not there, let’s call it out for what it is - an expensive time-wasting hobby.
Can you get more from this hobby than just a sore bank account?
If you’ve decided to trade the forex market then learn another secondary skill that can help you should this venture not work out.
Perhaps look at automating your methodology by learning how to program or code. Or if coding is too much of an initial step create a spreadsheet which will help you to analyse the market.
See, if the worst thing that happens, and you lose everything you put into this venture, which apparently will happen to 95% of us trading the forex market, then at least you’ve acquired another skill which can be readily use elsewhere.
If you’re just starting out in the forex market because of the glitz and glamour of the returns possible without lifting a finger then I’m sorry to say you’ve been conned, or scammed, or deluded.
You’re likely to end up being the 95% of trading fodder and aren’t likely to make any money whatsoever.
Now I know you don’t know me from a bar of soap, so I hope you can just take one piece of advice as you continue to pursue this forex endeavour:
Learn something new as you embark on this tumultuous ride.
See if you can learn how to program, or code, or perform analysis in a spreadsheet. At the very end of the day when you can no longer take any more of the continual losses you’ve had, at least your hobby has given you something.