Forex Education – 4 Accepted Investment Wisdoms That Will Lose You Money

 


Visitors: 161

If you think about it around 95% of traders lose all their equity and lose money and only around 5% make big gains.

The losing majority follow 4 accepted wisdoms in their forex education and if you fall into the same trap you will lose to, so let’s look at them.

1. An expert knows best

This is partly true, but the experts in forex trading who make the big gains certainly won’t tell you how they do it – there to busy making money, to bother selling their secrets.

The ”experts” that sell currency e-books for $100 or so, are certainly experts, but at marketing.

Doesn’t’ that copy look appealing?

Follow them and make money automatically, every month and all backed up by a simulated hypothetical track record done knowing the closing prices.

Reality is:

Most of them are junk and you can get better information for free on the net.

To make money you need to do it yourself and forget about anyone else helping you learn forex trading information that will make you a fortune.

2. You can predict market behavior

Another accepted wisdom that is dead wrong is – you can predict the market with scientific theory as prices move to a natural law.

Let’s hear it for investment theories such as Elliot Wave.

Elliot wave says markets move to scientific patterns but of course can’t tell you what they are!

If any theory could of course predict market behavior in advance there would be no market as we would all know the price.

3. More is better

Lots of clever people trade currencies and they have complicated forex trading strategies, using neural networks, artificial intelligence and chaos theory, bad news is they don’t work.

There is no correlation between how hard you work at forex trading and how much money you make, just as there is no correlation between how complicated a system is and how much money it makes.

Currency trading success is all about learning the right information ( and this means working smart rather than hard) and simple systems beat complicated systems, as they are more robust.

So all those people who tell you that you have to work hard and be clever are wrong – you need to work smart and keep it simple.

4. Above all else protect a profit

Forex trading is risky and if you don’t take meaningful risks you wont make a lot of money.

Most traders however try and protect profits and limit losses so much they are guaranteed to lose.

Here is what they do:

1. Diversify – Another word for this is dilute profits

2. Day trade – the best way to lose money – it doesn’t work

3. Trail stops quickly to lock in profit – translated as get minor profit when you could have made a large one.

4. Risk 2% per trade – Well if you don’t risk a lot you won’t make much either!

All the above are accepted wisdoms of online currency trading and all will prevent you from making forex profits.

If you understand the above and try a different type of forex education - that teaches you how to learn forex trading a different way, which is not accepted by the majority and you could join the elite 5% who make big gains trading Forex markets.

NEW! FREE MONTHLY " PRO TRADER NEWSLETTER + 3 X FREE TRADER PDF'S!

On all aspects of becoming a profitable trader including features, downloads and some critical FREE Trader PDF's and more FREE Forex Education visit our website at http://www.net-planet.org/index.html

(664)

Article Source:


 
Rate this Article: 
 
Learn a Proven Forex Trading System So You Will Never Lose Money in Forex ..
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Successful Currency Trading - 10 X Conventional Investment Wisdoms Which Will ..

by: Kelly Price (August 27, 2008) 
(Finance/Currency Trading)

Forex Education These Character Traits Are Admired But If You Have Them in ..

by: Kelly Price (July 27, 2008) 
(Finance/Currency Trading)

Forex Trading Education Using Todays Forex Games to Get a Forex Education Fast ..

by: Nigel Banks (June 17, 2008) 
(Finance/Currency Trading)

Forex Trading Basics - 10 Commonly Held Wisdoms That Will Destroy Your Account

by: Kelly Price (June 19, 2008) 
(Finance/Currency Trading)

You Could Lose Your Entire Investment if You Don't Know How to Trade Forex

by: Bob Gillespie (July 06, 2011) 
(Investing)

Forex Trading Education - Don't Focus On Making Money

by: Harold Hsu (January 29, 2008) 
(Finance/Currency Trading)

Learn Forex Trading, Forex Strategies, Forex Software, Forex Investment

by: Jhon Ericsson (September 15, 2005) 
(Finance/Currency Trading)

Forex Trading Education - Trading Looks Easy But You Must Have This Key Trait ..

by: Kelly Price (June 30, 2008) 
(Finance/Currency Trading)

Learning a Proven Forex Trading System So You Will Never Lose Money in Forex ..

by: Ivan Ong Shao Kuang (May 30, 2008) 
(Finance/Currency Trading)

Learn a Proven Forex Trading System So You Will Never Lose Money in Forex ..

by: Fred Jay (July 15, 2008) 
(Finance/Currency Trading)