Forex Traders - Being Realistic

By: Harold Hsu

I think many new traders doom themselves to failure even before they open up their trading charts. They buy into all the marketing hype that's been fed to them, and they think they can easily get something for nothing.

I hope you realize that trading, like almost everything else in life requires substantial time and effort before you can enjoy the benefits. If you have money to spend on training courses and personal coaching, then great, you can cut down on the amount of time needed to learn to trade profitably. If you don't want to spend money, you'll just have to spend more time learning through experiments (demo trading) and through free information. There's always a trade-off between money and time: you often have to spend either one. You can't save on both at the same time.

And the problem is that there are too many wishful-thinking people who don't want to spend money OR time to learn to trade well. They think there's some miracle pill they can purchase for under a hundred bucks that can instantly turn them into a wealthy trader... unfortunately the only wealthy people at the end of this transaction are the scammers that cheat them of their money.

Another problem about being realistic is that many new traders have a misguided notion that one can quickly get rich in Forex trading. While this is certainly possible, it's highly unlikely that anyone new to trading can make $10,000 a month right off the bat. I'm sorry to burst your bubble, but it's the truth.

You've got to ask yourself: "What's a realistic goal for me? 10 pips a day? 20 pips a day?"

Remember, the more money you want to make from trading, the more risk you'd have to take. Generally, an average daily gain of 30 pips is considered to be well above average. If you're new to trading, try to aim for a consistent 15-20pip gain daily.

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