Forex Novice Shyness

Forex Novice Shyness

Forex Novice Shyness! No one is around to applaud you when you have a success, and there are even less people around when you need a shoulder on which to cry. For all these reasons it becomes more necessary to have a plan before you enter the Forex market and to walk through your fears in order to implement your plan as a Forex novice.

One of the worst things a Forex novice can do in Forex trading is to become gun shy. You can’t be afraid to pull that trigger. The thought process of “…maybe I’ll wait a minute to see what the market is going to do…” is equal to giving away money; and not to a good cause. Particularly in an active Forex market, you are giving up pips by hesitating; then you are giving up pips by getting into the Forex pair of your choice; and then if you have to, or want to, get out you’re bound to surrender a couple pips. Profits are being left on the table because instead of acting according to plan, you hesitated according to fear.

Always remember your plan. The way to trade the Forex market is to ‘act’ not ‘react’. Those that react to the market usually get caught up on the wrong end of a tailspin and they keep reversing positions the wrong way.

Not every trade is going to be a profit. A very good baseball player making millions of dollars every year will only have a batting average in the .300’s. That means that 70% of the times he is up to bat he is going to fail! Can you imagine having a job where they pay you millions and only expect a 30% success rate? The point is, many Forex novice traders get discouraged and become a little gun shy if they experience a string of losing trades. You shouldn’t. As long as your risk falls within your pre-determined plan and you’re not doing anything outside of your plan, your risk/reward ratio will fall into place.

Every Forex trader knows that trading Forex is not for the feint of heart. That’s one of the beauties of the business. That’s what keeps it interesting. And if you become slow to pull the trigger and jump into (or out of) the Forex market, that too will become a habit. Everyone knows that bad habits are hard to break. In trading Forex, bad habits can also cost you money.

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