A guide on how to fail in the Forex market? Why on earth would anyone want one of those? Frankly, it beats us but with so many traders seemingly determined to keep making the same mistakes over and over again, it seems there must be some sort of appetite for doing it completely wrong.
Here, then, is a 3-step plan to failing in the Forex market…
1. Assume you know everything
Learning the ropes when it comes to the Forex market can be a long and tedious process and you don’t need to bother with any of that, right? You know the basics of how to place your orders which is essentially all you need to know in order to actually start trading. Jump right in at the deep end and start buying and selling like you’re in some Wall Street based movie. You don’t need to know all that boring stuff about how the market moves or any more sophisticated moves than buy or sell orders. While we’re at it, make sure you don’t enrol in any classes, practice with a training account or take the advice of any experienced traders who have been doing this successfully for far longer than you.
2. Don’t bother with a plan
Some traders make a meticulous trading plan that details pretty much every aspect of their trading. This incorporates their trading strategy, which can vary widely between individual traders with some suiting different personality types and circumstances more than others. These strategies will detail their entry and exit points, how they will use technical analysis, market indicators, news events and other tools to make their decisions. The overall plan will also deal with things like schedules and money management.
Don’t be like those people! You’re far too clever and intuitive to need such a detailed plan after all.
3. Treat the Forex market like a get rich quick scheme
Remember that no matter what other, more experienced traders might tell you, trading Forex is an easy and risk-free way to get rich almost overnight. It sometimes seems as if the most successful traders who have been in the game a long time tend to do things slowly and carefully, making sure their wins outweigh their losses and gradually building the capital in their trading accounts. Risk management strategies can help ensure this, which can mean using stop loss orders to minimise losses on individual trades and avoiding risking large proportions of your account on trades.
You, of course, do not need to bother with such a timid approach. Remember that time you won big on the roulette wheel (but forget all the times you lost, that added up to more than that one big win)?
There are other things you could do to royally botch up your trading career but we think we’ve covered the basics. Alternatively, you could ignore or reverse all the above, approach your trading sensibly and seriously and start to make a success of it instead.