Forex trading is not easy!
With modern-day marketing, brokers make it seem so easy to trade Forex. It is a known fact that only 95% of traders end up being successful and of the 5% that are successful only 2% will be able to make a living trading Forex.
Forex trading robots with demo account testing
There is a big difference between trading a real account and trading a demo account. Most Forex trading robots are sold with fantastic back-testing results but very few have actually ever traded a real account, so take the results from backtests with a pinch of salt when selecting an expert adviser program (EA).
The work ethic philosophy doesn't apply in Forex Trading
The regular work ethic of "if you work hard, you will succeed" does not apply in Forex trading, if you work harder it does not guarantee that you will be more successful. Many successful Forex traders work very few hours of the day, they tend to work smarter rather than harder.
Mathematics and Forex are not related at all
Many mathematicians come up with all sorts of mathematical formulas to assist traders with success; there is no formula for success. You also do not need a mathematical degree to trade the Forex market; some of the most profitable traders are the simplest folk around. Complicated formulas will only confuse you; don't fall into the trap of taking comfort in complication in Forex trading.
Margin Trading will kill your account balance
Trading with more capital than you actually have is called trading with leverage, most brokers offer about 200:1 leverage, you must be careful that you do not trade with leverage that is too high as it will kill your account very quickly. Leverage makes it possible for Forex traders to make large gains from their trades, but the reverse is also true, it creates the risk of making large losses if the trade move against you, so make sure that you always have a stop-loss in place.
A winning mindset is key to achieving
Making sure that you have the confidence to trade is important; try not looking for others advice too much. Trust your system and at all costs, do not deviate from your system. If you in a losing trade, it is not the end of the world, it is statistically proven that you can actually have more losing trades than winning trades and still make a profit, provided that your risk management is correct and you stick to your stop-loss.
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