What threatens to overestimate one’s strengths when trading forex
The longer you trade on the Forex currency exchange, the more you are amazed at the self-confidence of people starting their trader’s path.
More than half of beginners begin by draining their first deposit within a few days of trading.
Traders immediately come to a real account with amounts of several thousand dollars and an unreasonable belief that the presence of money guarantees them earnings.
What is the reason for such behavior?
In order to find out, it is enough to talk for a few minutes with a novice investor who has just entered stock trading. In this case, you will encounter two categories of people:
• The first believe that only money is needed to make money on Forex, and the more the better, and everything else is not important.
• The second, more advanced ones, are confident that the main thing is to make a correct forecast of the future course. At the same time, they are sure that they will do it with ease.
And if everything is completely clear with the first category, then the self-confidence of the second is always surprising. How can you say that you know how to do something if you haven’t tried it? But unfortunately a person tends to be mistaken, and inflated self-esteem is sometimes formed for no apparent reason.
After all, opening deals in the trading platform is so easy, and making forecasts and forgetting to check how much they come true is even easier.
Moreover, as a rule, such a person starts trading immediately with a large amount, because he is sure of guaranteed success and wants to earn as much as possible right away. As a result – losses, attempts to recoup, again losses and depression.
Although it is quite possible that this novice trader had all the chances to become a professional, start trading with a demo account.
It is trading on demo accounts that helps to quickly lose illusions and really assess your strengths. And a real assessment allows you to find ways to self-improvement, and now you start earning in real life, and not just in your dreams.
When starting trading, the most important thing is to correctly assess how ready you are for trading on a real account. And this is done with the help of demo and cent accounts . After identifying mistakes and gaps in knowledge, you can proceed to learning and try your hand again.
Only after the results of several months your demo accounts confidently begin to show a profitable result, it is worth moving on to trading using large amounts in real life.
