Traps of the Foreign Exchange Currency Market

Traders lacking experience, risk falling into traps in the foreign exchange currency market. Many such traps are set by false beliefs and extreme discipline.

Traps of the Foreign Exchange Currency Market and How to Avoid them

Forex mentors tend to teach too much on false, ambiguous indicators and discipline. Which the foreign exchange currency market tends to defeat. False indicators and trading methods are false because the creators lacked impartial judgment and critical thinking. Discipline on the other hand is good, as long as is not extreme. Generally, all rules have to be broken at one time or another. At least that’s what creative trading requires. And this is because the markets are not mechanical as many of these mentors make them out to be. Extreme discipline can lead into the trap of missing many good trades, because these trades don’t meet all your entry strict criteria. And if one believes too much in all trading rules, at all times, they might be afraid to take this or that trade. Online trading is not a very pleasant activity when one follows too many rigid rules. And the strategy used fails to connect to the flexible nature of the markets. Live forex rates are even more confusing than lower volatility time frames. And rigid rules may even lead you into placing the wrong trade. Rules such as to never buy below support, and to never add to a losing trade are nonsensical oversimplified rules lacking attention to detail. But because these details are way too many, and impossible to cover in a training course, teachers leave them out. So instead, they present a crude trading system which fails to match the details of the market. Trading the foreign exchange currency market successfully requires enormously great attention to detail. A set of skills which cannot really be taught overnight. It is kind of like learning to play chess, simply crude strategies are easy to teach, but will never defeat a skillful chess player. Not in a million years!

The Mind VS the Foreign Exchange Currency Market

The mind can learn to face and embrace the risk of the foreign exchange currency market. And I so doing it adapts, and it becomes possible for traders to figure out the next move. It becomes possible to avoid losing trade traps, because this skill becomes an effortless second nature. Good traders have notes and do a lot of analysis, but when they trade they don’t have a checklist of strict conditions and rules. It’s all second nature to them. Remember that the very reason why Forex Robots fail to trade profitably after a while, it’s exactly because they don’t have a mind to think, and just follow sets of rules. No matter how much detail goes into these sets of rules, or how dynamic the strategy is. Forex robots end up failing miserably after a while, and cannot even come close to beating humans at trading. They say emotions are bad in trading, that’s not quite true. Emotions are bad when caused by obvious trading signals. Which tend to be false more often than not. But good traders still have hunches and emotions. It’s just that they have to do with much less obvious trading signals. And these signals are checked against serious analysis. Some forex brokers have as many as 40% of their clients actually winning money trading the markets. All of them are to some extend suspicious, emotional traders. But because they use their hunches and emotions originally, and check their trades against in-depth analysis, they end up winning. Now what kind of ultra disciplined trading could possibly allow them to have such hunches and emotions? None! So emotions in trading are not necessarily a bad thing. Moreover, these emotions are not caused by money. Not by winning trades nor by losing trades.