Yeah, that's what usually happens. But the fact is that usually the fear of losing money sometimes leads the trader to some impulsive, sometimes illogical actions, which harm the trader himself. Therefore, it is very important to learn how to 'turn off' your fear and other emotions. It is very hard, but until you learn how to shut off emotions and the actions that come after - your trading will not be as successful as you would like. So make conclusions and move on to a more conscious unemotional trading.
leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.
Mohammadi posted: leverage is a very complicated issue in Fx trading , sometimes it bring profit very rapidly , sometimes it causes a great losses and risk in spite of having risk management , but after all its one of the major financial issue in Forex.
That's right. Leverage if not handled properly can cause great losses. A crucial thing to decide on while trading.
That is why there is such a notion as 'trader's psychology' and in order to become an effective market participant you need to study this topic and understand all the nuances of how you need to prepare for trading, how to keep your emotions under control and how to rest properly after a trading session.
Mostly traders especially the newcomers consider high leverage as much risk. But according to me I don’t consider it. If there is any risk, it is completely with non-sense planning and zero risk management plans, nothing to do with high leverage at all.
Forex trading deals in a high volume of transactions hence the fear of losses is bound to exist.The fear of losing when making a trade has several consequences. It tends to make a timer hesitant to execute his or her timing strategy, this can often lead to an inability to pull the trigger on new entries as well as on new exits.
Roberto21 posted: besides making profit there is only losses and fear. so we the traders have to make sure how to faces losses and control emotions. actually emotions is the foremost enemy in our life only not Forex trading all about life attitudes.
You can avoid fear and emotions issue simply by using expert advisors to trade for you.
Tezilkree posted: When we have a loss, fears begin for us, for which we cannot continue to trade.
Correct! Losses are a huge demotivator. But we have to understand that losses and profits are just a part of trader's life. We should take lessons from losses, understand why they occurred and take steps to not let them happen again.
HIGH RISK WARNING: Foreign exchange trading carries a high level of risk that may not be suitable for all investors.
Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance.
You could lose some or all of your initial investment. Do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
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