Abstract：The financial industry is brimming with prospects for everyone interested in making money. Many traders give in to the urge and jump into the water with their heads down, making reckless deals that aren't backed by analysis or even plain sense. As a result, financial losses are massive, and disgruntled traders are increasing in number. And it was only necessary to take a more responsible approach to this issue, and perhaps there would be no loss at all, and Forex would become an ideal platform for making a significant profit.
Psychological variables are vital when joining the financial market, but not all players are aware of this, and even fewer attempt to comprehend it. Humans are such animals that a variety of conditions may throw them off balance: induce aggressiveness, put them in a trance, catch them in a panic, provide hope, engulf them in a web of enticing sloth. Counting on favorable financial returns from Forex trading is a fool's errand with such a mindset. However, in order to fight the trader's “adversaries,” you must recognize them by sight. We'll learn about various “vices” today.
To get great results from financial market trading, it is required to invest not only a month (but often even a year) in education and training. Everything is the same as in school: theory first, then practice. Yes, it takes some time since no one guarantees fast success.
Furthermore, it may appear at first that everything is straightforward and obvious, and beginners, as you know, are fortunate. As a consequence, having gotten the first favorable results, the rookie trader is too lazy to continue practicing and learning about the complexities of trading and instead travels to the actual market, where he undoubtedly encounters a number of difficulties.
As soon as laziness is overcome, and it appears that much has been studied and practiced, the trader is confronted with a new challenge - growing dread. It usually occurs as a result of a trader's choice to leave the demo account and begin trading on the live market. Fear is understandable in this situation.
The demo account is a training site that totally (or nearly completely) replicates the working circumstances on a genuine account, with the key distinction being that virtual fund, rather than real money, are used. Thus, a trader may learn how to trade without risking real money and can make mistakes safely by trying alternative strategies, working with a diverse range of trading assets, employing a number of technical indicators, and so on. Yes, a trader can practice for an indefinite period of time on this account. But don't play for too long; switching from a virtual platform to a real one will be more difficult. Fear begins to work at this point. The most essential of all conceivable anxieties for a newbie trader is not making mistakes but losing money. As a consequence of being fixated on the possibility of losing cash, the trader unconsciously begins to make a series of mistakes, act utterly irrationally, and, of course, lose money. Beginning Forex traders must remember and embrace the idea that losing money is a possibility, since no matter how experienced a trader is, it is possible to lose money the market is unpredictable and may defy all logic.
Traders who use new methods frequently experience fear. As a result of anticipating the publication of certain news and forecasting the movement of an asset in a given direction, the trader becomes panicked if the market goes in the opposite way and he is forced to make reckless judgments. In this circumstance, it is important to remember that the “law of the mob” is in force, which means that making an ill-considered decision in response to the crowd might worsen the issue even further.
ADVICE FOR NEW TRADERS
Finally, it is not unnecessary to offer some advice to traders who are just getting started in the foreign exchange market:
· Do not ignore theoretical materials and invest as much time as possible to learning.
· Train on a demo account until you're confident with your talents.
· Experiment with trading assets and new techniques on a demo account only, where there is no danger of losing real money.
· follow the money management standards;
· stay up with major international happenings;
· Find the most comfortable and lucrative strategy.
Remember to present the acquired earnings on a regular basis so that you feel rewarded for your work.
As you may know retail traders only make up a fraction of the 6.6 billion dollar forex market. Big financial institutions such as banks and hedge funds open large positions within the market which then determines the direction of the market. As retail traders it is then in our interest to trade along with these market movers and benefit but how are we to know what these big financial institutions are doing? That is where the Commitment of Traders (COT) report comes in. In this article we will be giving a short overview of what the COT report is and how to use it.
Most forex brokers provide their clients with a demo account option. A demo account is also known as a practice account or a fake account.
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