HomeIf you are just beginning your Forex trading adventure, then this humorous look at trading is for you. I want to be certain you are informed of these trading best-practices so that profit and success does not accidentally fall your way. After all, money is the root of all evil, so I'm sure you'll want to avoid that trap at all costs.
What follows is a list of things that you should avoid if your wish is to follow the foolish traders before you who lost it all.
Who Needs A Plan
First and formeost, it is very important that you make absolutely sure you do not have a sensible trading system. Having a well-developed plan could easily lead you down the path to accumulating wealth, which I know is not your intention. If you possessed a system you would have a clear-cut way to open and close profitable deals. Traders who use such systems have an objective way to analyze a deal and evaluate its risks and benefits. So don't take an objective look at any opportunity in Forex and you will be spared any huge monetary gains.
In the case that some well-meaning person has already helped you create a trading system, by all means, do not ever follow it!
Take Risks - Caution Is For Wimps
Risk all the money you have on any deal, live carelessly because life is short and you want to have as much fun as possible. Remember; NEVER have a sensible trading system and ALWAYS open and close deals at the drop of a hat without analyzing the risk or profitability.
Never trade in a disciplined, planned, and logical manner. Remember your goal is to avoid riches. You might gain exponential profits from this so-called logical system and, even worse, you could develop the knowledge and experience necessary to master the Forex market.
Training? We Don't Need No Stinking Training!
Do not ever take a Forex training program and never, ever look at historical charts of previous deals and successes.
Stay uninformed. Ignorance is bliss and will lead to a happy, contented life. Most wealthy traders are very well educated, so steer clear of their methods and advice. Do not learn about the economic status or political stability of a country whose currency you are considering investing in. Education is a dangerous commodity for someone devoted to poverty. To ensure failure at Forex trading, be undisciplined, uneducated, and unaware.
Mismanaging Your Money Matters
As far as money management techniques go, they have an underlying insipid purpose. Please don't be fooled into thinking a money management program is a benefit to you. It will cause you to avoid irresponsible, bankrupting risks and foolish, impetuous decisions. Money management actually helps boost your profits incredibly. Those techniques can cause you to make ten or twenty lucrative deals in a short span of time and greatly increase your Forex trading account. Stay far away from any tried and true money management program. This is in your best interests of failure, of course.
Distractions? What distrac... Hey Look A Squirrell!
Need I point out to ignore any psychological preparation for Forex trading. Cling tenaciously to fear and anxiety. Successful traders learn to harness these emotions so they are not prevented from taking action on a deal at the optimal time for the greatest gain. So, let fear be your master and never try to override it and act logically.
Experienced traders realize that everyone loses a deal now and then, and they remain focused on their overall history of gain and loss. Forget this: lose, lose, lose and never deal effectually with anxiety or learn to overcome fear. It's the only way to trade unsuccessfully.
Forex requires using a risk-reward (RR) ratio in analyzing deals. I counsel you to never operate with a RR ratio of more than 1-1. If you use a RR ratio of 1-2, you are willing to make twice the amount of profit as compared to your initial investment. Don't even consider a RR ratio of 1-3. Many successful traders gain the experience to wisely assess a risk and discern when a 1-3 RR ratio is to their financial advantage. Remember your goals. Do not ever use a RR of more than 1-1. Your Forex account might grow quickly. Huge monetary gains are your enemy, right?
If you are diligent to apply all my advice you can be guaranteed no profit whatsoever in Forex trading. Foreign currency trading is a lucrative, growing marketplace with financial opportunities for educated, disciplined traders who set up a well-planned system of opening and closing deals and then stick to their system. They make money in Forex, so always avoid their mistakes and you too might avoid the consistent financial benefits of Forex trading.
About the Author:
Ferris Malone writes about investing and early retirement. Discover a powerful way to generate wealth and improve your Forex trading with rock-solid Forex trading strategies by attending one of the FREE "Forex Trading" Webinars. Get a FREE Forex Strategies 21-page report.
