Hello, welcome back. I hope you are still keeping well and safe during these times, I am also just trying my best to stay alive. In S.A we just moved to alert level 1 of lockdown and our economy is slowly reopening, we are only praying and hoping for the best. OK, I have been answering this question about whether Forex trading is something worth trying or not.
Why Did I Start This Blog?
The aim of this blog is to provide practical and realistic tips and content that can be used by anyone. I am not here to give any form of financial or investment advise. I am basically just listening to the public’s frequently asked questions and answer through these articles. A few weeks ago, I published a blog post addressing the issue of untrustworthy Forex investments and that was after my email and social media were flooded with people asking me a lot regarding these investments. Most people were actually crying.
Why This Topic?
Since lockdown started, most people found themselves working from home and some people actually lost their jobs. There’s been a lot of uncertainty since Covid-19. Most people are constantly looking for alternative ways of making an income. Because of the current situation with Covid-19, the online world has really become an obvious option. Let me try to answer this question in a practical and a realistic manner like I always try to do.
You’ve been thinking about venturing into Forex trading lately. You hear your friends or your colleagues talking about trading and telling you how you can make a lot of money working from home, there’s a lot being said about the unemployment rate and folks on social media are also out there telling you how you can fire your boss in six months etc. You read about it on social media, you see it everywhere, you join every group of Forex traders on Facebook, and you even get those overwhelming inboxes from people who stay overseas (you know those people who are inboxing you daily and they want to turn you into a millionaire, they inbox me too because they never bother to check the profiles, all they want is to get to their next victim’s pockets) You are now thinking that you can actually be a millionaire by next year if you can start as soon as possible, WAIT!!! Let me give you a lesson or two on this subject and then you can decide.
Can Someone Really Make A Million Trading Forex?
Yes, definitely, there’s no lie there, but it won’t just happen though. There’s a process, some learning and investing money that should happen before you get there. Your earning potential is also highly linked to your start up capital. You can ask me all about it via WhatsApp (see the WhatsApp feature at the bottom of this post and chat with me)
Who Can Trade Forex?
Whether you have a full-time job, you’re a business owner, a student, a stay at home mom with no degree, whether you are male or female, you can. The flexibility of financial markets will meet your needs allowing you to trade at the set time that suits you as an individual since the markets are open for 24 hours/5 days a week. The age has caught up with the markets and trading has now shifted from the floor to the computer network which makes it easier for anyone to participate. It is a skill that anyone can learn with absolutely no need for any financial or economics background.
Who Should Stay Away From The Markets?
We all know that nothing is ever suitable for everyone, that’s not how the world works. A person who is looking for a quick buck without putting in any effort should deal with that first before venturing into Forex trading. A person who refuses to work on themselves and is always looking for things or people to blame whenever things don’t go right. A person who has a serious gambling problem. All the above mentioned are the things that can be changed though with the help of a good mentor & coach (that’s what I deal with sometimes) As long as you are willing to unlearn these habits and be coachable, you can get through such issues and start your trading career. I have helped a lot to overcome such issues.
Is There Any Risk Involved?
Of course, a big YES, there is a risk in trading just like risk is everywhere, but as with every other business, risk should always be calculated, and definitely it can be. That is why one needs to invest in education and acquire proper knowledge before investing some money. With proper money management skills, risk can be calculated. I recently published a blog post on this subject, you can check it out HERE. We cannot control the markets, but we can definitely control ourselves. The past few years of being in the markets have taught me that failure is mostly as a result of lack of self control and greed. For that reason, my coaching focuses more on trading psychology. I believe that if we can manage ourselves, we can manage our money.
Conclusion
Yes, Forex trading is worth trying as long as you can get education, mentorship & coaching. I hope this helps. Thank you for stopping by. Please kindly share this post with anyone that you think might need this content. For private lessons, mentorship & coaching, you can check HERE and grab your 20% OFF special for my last training sessions of 2020. Please stay safe and know that we are supported and there’s life after Covid. Keep the faith. You can also download our mobile App on Google Playstore so that you don’t miss out on weekly tips on trading psychology.
The markets have been very sleepy lately. It is known that the month of August is a very slow moth for trading. This week we have the most watched economic news from the United States. They’ll be releasing their 9th employment stats otherwise known as Non-Farm Payrolls (NFP) on the 4th of September together with their unemployment rates and earnings.
We now have an app where you can access these blog posts at your fingertips. I recently started posting weekly tips on the App that are mainly focusing on Forex trading psychology. The main aim is to help you shape your mindset and gear it up for better trading experiences. The weekly tips are posted exclusively on the app. You can download the app on Google Playstore and make sure that your device allows push notifications to be notified whenever a new weekly tip on Forex trading psychology to improve your trading is posted. Thank you so much for stopping by. Please feel free subscribe for future publications and kindly share this post to reach more traders who may benefit from this content. Below is our weekly economic news to watch this week.
Money management refers to the set of rules that we (traders) set for our trading accounts. These rules involve things such as when to exit a loosing trade or cut our losses. So basically it is about how much we are willing to risk in our accounts per trade. I always say that as much as we cannot control the markets, there are a lot of other things that we can control. We can control ourselves, which is the most important part of trading. I recently published a blog post on trading psychology, you can read it here. Controlling ourselves in the markets can be very challenging, but it is something that can be achieved as long as we are willing. It is even better with the help of a mentor or a coach.
How to avoid losses?
You cannot avoid losses in trading, losses are a part of the whole process. If you hear someone saying that you can avoid losses, they are probably trying to sell you some “amazing system”, run (with your bank card). The only way to avoid losses is to stop trading altogether. Because I know for sure that losses do occur, I wrote a post on how to recover from a draw-down. The good news though is that we can control the losses through using a tight money management strategy which will ensure that whenever you encounter losses, they should not exceed your gains. I am a very simple girl who loves to simplify everything. Whenever I do a lesson on money management with my mentees, I don’t use any complicated calculators but I teach them how to view their accounts. Below I will be going more in depth with how to view your trading account.
View your trading account as a business
I know very well that opening a trading account does not qualify one as a business owner. I also know that there’s absolutely nothing that can stop you from viewing your trading account as a business, so start right away to view it as a business. When you view your trading account as if you just opened a small business, you’ll be likely to implement all the principles that we implement when opening a business. Everything works better if you work it our in your mind first. I don’t know any business owner who opens a business and completely ignores the running costs (I know I don’t). If your business is about selling food (of course I’ll say food because I love food) you are not going to just attach a price to your plates without thinking about the cost of cooking that food.
When it comes to your trading account, you must also manage your money like you’d manage the money in a business. Mind your lot size, spreads and know the currencies and other financial instruments that are a bit expensive for your trading capital etc, just like you’d always try to calculate your costs in a business. Unfortunately, I cannot explain more on that through a blog post but I definitely do in detail through my mentorship program.
How do you know if your money management is tight enough?
This will depend on many factors like how you trade, how often do you trade, the lot size that you trade, the instruments that you trade and the time frames that you trade etc (at least that is how I look at it, it could be different for someone else). Some traders operate on a fixed money management which means risking the same percentage for all your trades no matter the volume and some do prefer to adjust the percentage according to the volume and an instrument traded. Whatever you choose to do, managing your money well in your trading account starts with understanding the costs. You may like this post about margin call which occurs due to poor money management. I am so sorry that I did not share any position calculator or system. Like I said in the beginning, I am a very simple girl and with me, simplicity always wins.
Conclusion
If you can manage yourself well and view your trading account as a business, you can definitely manage your money very well and never have to experience margin call. Forex trading psychology is that one areas that I focus the most on. I recently started posting weekly tips on the App that are mainly focusing on Forex trading psychology.
The main aim is to help you shape your mindset and gear it up for better trading experiences. The weekly tips are posted exclusively on the app. You can download the app on Google Playstore and make sure that your device allows push notifications to be notified whenever a new weekly tip on Forex trading psychology to improve your trading is posted. Thank you so much for stopping by. Please feel free subscribe for future publications and kindly share this post to reach more traders who may benefit from this content.
Forex trading psychology refers to a trader’s emotions and their mental state. It is one of the most important deciding factors of whether a trader will make it or not . It is also about a trader’s character which plays a big role in influencing their trading decisions. Most failures in Forex trading are more about how traders manage themselves.
Manage Yourself, Manage Your Money
I always say that if you can manage yourself, you can definitely manage your money. Most traders think that the most important thing for successful trading, is finding amazing tools and trading strategies. I also understand that we cannot control what happens in the markets, but we can always control ourselves. Now that we know what Forex trading psychology refers to, let’s look at the few specific behaviours and emotions that can be associated with it.
Self Discipline/Control
In whatever that we do, we mostly need a certain level of discipline, without it, chances of being successful are limited. I will make an example with trying to keep fit and getting healthier, we need a lot of self discipline/control in terms of what we eat and also making sure that we get moving and exercise. If we lack self control, we will feel tempted to eat junk food and justify it by saying that everyone around us was eating junk. I love using these as examples because I know how difficult it is for most people to discipline themselves in terms of what they should eat and not eat. Healthy eating is one of the important things that I am passionate about because health is wealth. Let me go back to the business of today before I go on and on about food and health.
How Important Is Self Discipline?
When it comes to Forex trading, discipline should be your strongest weapon. If you cannot discipline yourself in the markets, the markets will sure discipline you through a margin calland that is not a nice thing to experience as a trader. Disciplining yourself involves you saying NO to that urge to trade all the time/over trading, using a bigger lot size when your account is small and risking more that what your account could handle.
What Happens When You Lack Discipline?
When you lack discipline, Forex trading feels like a very bad addiction. When you lack discipline, you are unable to stick to your own plan. The good thing is that discipline is something that can be learned, as long as there’s a will to learn and enough support from a Forex trading mentor/coach. I have learned that it is easier to win when you have a support system to help you up when you stumble (that’s basically what I do with my mentees). A mentor/coach clears a way ahead for you. I never do anything without a mentor/coach until I can stand on my own. Normalise doing the same, it really helps.
Fear
When fear strikes, you are likely to miss out on great trading opportunities for the fear of making mistakes and losing money (especially if you’ve made some mistakes that lead to you losing money). The fear of missing out is also another form of fear that is associated with Forex trading psychology. When this type of fear strikes, a trader feels like if a day goes by without placing any trades, they are definitely missing out. But the truth is, a missed trade is never a loss. There’s another type of fear that I won’t indulge in that much on this post, and that is the fear of success. You can read all about it in the post that I published a year ago, HERE.
Greed
According to its definition, greed is a selfish want for something beyond one’s need. A greedy trader is a trader who is never satisfied no matter how great their trading session can be, it always ends very bad. No matter how much they make in a day, it always ends in great losses at the end of the day. A greedy trader never takes money home, it only goes as far as trading history. The good thing again is that, this is something that can be unlearned, as long as you’ve identified and acknowledged it, you can learn NOT to be greedy. Unlearning forms a big part of learning, read more about that HERE. A while ago, I published a post about overcoming GREED, you may want to check it out.
Forex trading psychology is also that one area that I focus the most on. I recently started posting weekly tips on the App that are mainly focusing on Forex trading psychology. The main aim is to help you shape your mindset and gear it up for better trading experiences. The weekly tips are only posted on the app. You can download the app on Google Playstore and make sure that your device allows push notifications to be notified whenever a new weekly tip on Forex trading psychology to improve your trading is posted. Thank you so much for stopping by.
I really hope that this post added some value in your trading journey. To help me reach out to more people who may be in need of this content, kindly share this post and subscribe for future publications. Keep well, wear that mask, wash your hands, practice social distancing, sanitise and stay safe.
Previously on the news: Due to a bank holiday on Friday, U.S Non Farm Payroll was released on a Thursday. Job numbers rose to 4800K Vs 3037K. These numbers were not necessarily about new jobs, but more about existing employees returning back as lock down is slowly easing. Earnings dropped to -1.2% Vs expected -0.8%. Unemployment rate dropped to 11.1% Vs 12.4%.
On the 7th, Reserve Bank of Australia(RBA) will be deciding on their Interest Rates. They are expected to maintain the current rate of 0.25%. As usual, they will also issue their Monetary Policy Statement, which focuses more on the future. We will be watching the tone of the statement to see if it is hawkish or dovish.
Should you wish to subscribe to this blog for weekly economic news and practical Forex tips, you can subscribe by entering your email address on the subscribe tab on the sidebar, go to your email for a confirmation link (it could be in the spam/ junk folder) click on it to confirm your subscription. The App is also available on Google Play Store . Weekly tips on trading psychology are posted only on the app, DOWNLOAD it today. (App Store is coming soon). In case you missed my previous post on how to avoid Margin call, check it out Here. Thank you for stopping by. Below is the weekly economic calendar and happy trading.
Recent Comments