Trading is not all about sunshine and rainbows

There are thousands of people who enjoy every day looking at their chart and placing their trades. Most of them are novice traders because they do not know the risks of Forex trading. As they hear about this market form online news and from their friends, they begin to draw a picture in their mind that it is very beautiful. There is only money and you can make money by placing your trades. The industry is so big that you do not need to analyze the trends. It may sound silly in the ear of experienced traders but when new people come to invest in Forex, this is what goes in their mind. They believe trading is all about sunshine and rainbows, there is no loss and only good fortunes wait for them. Their idea soon collapses and it turns into a loose hell when they place their first trades. They found out the trends are changing and it is going against their trades all the time. This is a war that must be won through experience and wisdom. This article will tell you why trading in this industry is not a fairy tale. It is dangerous than a mining field and you can lose your capital at any time.

The disciplined trader

Only the disciplined traders can make a huge profit from the Forex market. The novice traders in the United Kingdom often blows their trading account and blame the market. But do you really think they are doing the right thing? Being a Forex trader, you are in the driver seat. Every action that you will take will have an outcome. So if you fail to identify the good trade setups its very obvious you will lose money. You have to follow a proper strategy and trade this market with discipline.

Having a perfect trading strategy is not enough for trading CFDs. You have to develop a strong mindset to deal with the losing trades. If you fail to embrace the loss, it’s better not to trade the market. In fact, the successful traders are losing money more than 30% of the time. But due to their high-risk reward trade setups, they easily cover up the loss.

Trading has many underlying risks

What you see on the online resources and websites are not true at all. They only advertise what is good and most of the time skip the reality. It is in their nature because they know people will not invest if they became aware of these risks. The best choice is to advertise by hiding these underlying risks. For example, you know the leverage can take away your capital if the trade is lost. When brokers advertise in their page, they highlight the benefit of using the leverage that will allow you to big place trades. Little they will focus what impacts it is going to have on your account when you lost your trades. People come to know of these risks through experience but it is too late when the time comes, many have quit and many have lost their investment.

Some risks are undetected

The professional traders cannot alert you of all the risks. Many risks come in front of you and you have to use your intelligence to fight them. These risks are undetected and they often come with volatility. When you trade with the trend, the trend can change and you may lose your money. It is your wisdom to place the stop-loss and save yourself from losing your money.

Only a few make the money

Though it has the honor of the biggest investment sector of the world, still it only gives profit to a few people. They are handpicked by the industry and they are experienced. Do not expect you will start making money as soon as you deposit your first amount. It takes months to understand the basic concepts and you learn through losing money.