Click Image To Visit Site Here’s why: Absolutely everybody in the business involved with individual own account forex trading (forex brokers and their hordes of marketers, affiliate marketers, introducing brokers and providers of all sorts of information and educational services to forex brokers) has an incentive to make it sound easy to prospective traders in order for their business model to succeed. For them to make money, wannabe forex traders must think it is an easy and fast way to make money themselves.
It is simply a historical fact of the development of the Internet as entrepreneurial domain that online forex trading by individuals and “making money online” by any individual, anywhere in the world, without specialist knowledge in any subject went hand-in-hand during the first decade of the 21st century.
As a result thousands of online entrepreneurs with no practical or meaningful knowledge of making money with forex trading began to promote forex trading! This obviously had some devastating snowballing consequences. After a few years it all sounded so easy, who would not want to try to make a lot of money with little money?
Apart from the obvious that such claims usually understate difficulty and overstate potential and thus are (in hindsight) usually “too good to be true”, there were other reasons specifically related to forex trading. Some of them are:
Leverage: Simply put leverage is in trading the ability and right to trade with more money than what you have. Give this principle to a professional Internet marketer and what jumps out is a strong believe that “I can make a heap of money with very little money to start with”! The down side of leverage never made it to traders’ collective consciousness. So, oblivious to the dangers of losing money, actually a little faster, than making money with leverage, wannabe traders lost a lot of money a little bit at a time, in stead of making lots of money with little money.
Money psychology: Long before there was an abundance of online forex trading systems, traded by millions of individuals, Nobel laureate Daniel Kahnemann and Amos Tverski did the research to show how rational individuals act quite irrationally when it comes to matters of making or losing money. Again, and unfortunately, professional Internet marketers who are well aware of these matters simply turned into a pot of gold for their clients. The operative word? “Stop loss”
“My trade always go in my favour just after it hit my stop!” How many times have you thought or said that, or heard or read someone else say that? Clearly there is a problem. Yet, trading systems are promoted as the all in solution, not only with this flaw but with this flaw amplified! Then traders wonder why they still struggle so much?
Uncertainty: It sounds so simple. “I am sure!” Well, in trading there is no certainties! None. Nadda. Zilch. Never. And that is a big problem. Uncertainty as an experience cause havoc in human brains, emotions, and lives. Trading… Read more…
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