Hindrances to successful forex trading II

Another material hindrance is power supply. Due to the situation of power supply for instance in my country, which we want to speak about positively, believe is improving, alternative power sources are just simply vital to most of the different types of traders, particularly day traders. Most traders use laptop computers, which provide backup power for at least two hours. Some other add an uninterruptible power supply source for additional 30 minutes or more of power supply.  A few use inverters and batteries to give several hours of power supply and finally some use generators. All of these can be combined to give a total power supply solution. A power cut in the middle of a trade is not good at all for news traders and day traders.

Your trading environment can also be significant material hindrance. There are some places and among certain people that you just cannot focus to give your best to your trade. You also have to schedule your other responsibilities so that they do not interfere, that is if you are a news trader or day trader.

One good example is a company worker that wants to trade actively. You can not day trade and work at the same time. One activity will suffer for the other to progress. My advice is that you should consider swing trading or position trading. Your job and your swing trading or position trading account can coexist harmoniously. If you do insist on day trading or news trading, then you must schedule your trades to be at times when your boss does not need you or else you risk declining job productivity and an eventual sack or demotion. Another material hindrance can simply be lack of adequate trading funds. When I say adequate trading funds, I mean free unencumbered funds. Funds that, if lost, will not materially change your lifestyles. If you trade with borrowed funds of any kind, you put yourself under serious pressure that can affect your trading decisions. Only very few can handle that pressure.

We can now go to immaterial or psychological hindrances. One of the first to light up on my radr is the get rich quick mentality. Forex trading is not a get rich quick scheme. Those who go into it thinking like this get poor pretty quick and what is the reason? Greed! Get rich quick traders take insane risks hoping to make millions in minutes- not that it is impossible, but is it consistently possible? I say no.

This mentality keeps traders from taking trades that would have given reasonable profits because they are waiting for that killer trade, and killer trade it finally becomes because one day it finally kills the account. Traders need to have patience skills knowledge, commitment and a lot of discipline in order to achieve success in forex trading. Forex trading does not result to easy money. Next is the Holy Grail. Men have been searching for it since the days of Jason and the Golden Fleece. The Holy Grail is a term for that perfect system, method or machine that always works and never fails. Granted a certain amount of searching is necessary to find what works for you, but let it sink in that the perfect system does not exist. The earlier you realize that, the quicker you will get on to getting ahead with your trading business.

Another hindrance is trading for excitement. Some people trade just to enjoy the pleasure of watching cash ticking into their account in real time. They just want the flow of adrenalin flowing in their veins. This is a hindrance.

 

Cheers

 

Culled from the Punch     

Comments

  1. Nice Site layout for your blog. I am looking forward to reading more from you.

    Tom Humes

  2. thanks Tom really appreciate your gestures… eehhm did i tell you I’m thinking of selling the blog?