CONTINUATION.....7. OVER-TRADINGIn the Forex market today, most brokers promote short term day trading systems because they know that the more positions you open the richer they become charging their own commission.
Many traders don’t understand this. They convince themselves that spread and slippages is an irrelevant cost of doing business, but it is an important part of your trading equation (spread+ slippage =?). When a trader over-trades, the cost of these might add up and become a headache during losing strings.
SOLUTIONBe wary of systems or techniques that promote excessive trading. The commissions and slippage will all serve to erode your eventual profit. So, try as much as possible not to over-trade.
8. CHOICE OF BROKERThe problem of the choice of broker is a very common one, especially among new traders. Traders/ investors always fail to do the research on the broker they intend to choose. Once a broker can give mouth watering offers lie low spreads, 30% of your first deposit, instant trade execution, no delay in withdrawal, a trader will be tempted to open a live account just to get these entire offers neglecting the fact that they might just be ordinary screen offers. So as a trader/ investor one needs to be very sure.
SOLUTIONYou need to make sure that you choose a broker that is registered with the relevant regulatory bodies. Test them on a demo account. Virtually all brokers have a demo account for clients now. So, before you fund your live account check for some of these:
1. Trade execution
2. Customer support relationship
3. Spreads
4. Registration procedures
5. Make sure you know to details the safety of your funds
And for traders that has already opened a live account with any of these brokers, make sure you as well check all these things with your broker. If you suspect unfaithfulness it is better for you to withdraw your funds and trade with a credible and trustworthy broker.
REMEMBER: People tend to gravitate towards the things that don’t work. It is human nature. You can learn the real “success secrets” to the markets only if you pay attention to what really works. The HOLY GRAIL is not what you would expect it to be. It is something that is different for each person. It is a hidden secret that you will have to discover for yourself, but it is obvious once it is realized.
Like JP Morgan said “To be a money master you must first be a self master”. So, the most important factor in your success is YOU.
Have a splendid time TRADING.
Thank you.
Many traders don’t understand this. They convince themselves that spread and slippages is an irrelevant cost of doing business, but it is an important part of your trading equation (spread+ slippage =?). When a trader over-trades, the cost of these might add up and become a headache during losing strings.
SOLUTIONBe wary of systems or techniques that promote excessive trading. The commissions and slippage will all serve to erode your eventual profit. So, try as much as possible not to over-trade.
8. CHOICE OF BROKERThe problem of the choice of broker is a very common one, especially among new traders. Traders/ investors always fail to do the research on the broker they intend to choose. Once a broker can give mouth watering offers lie low spreads, 30% of your first deposit, instant trade execution, no delay in withdrawal, a trader will be tempted to open a live account just to get these entire offers neglecting the fact that they might just be ordinary screen offers. So as a trader/ investor one needs to be very sure.
SOLUTIONYou need to make sure that you choose a broker that is registered with the relevant regulatory bodies. Test them on a demo account. Virtually all brokers have a demo account for clients now. So, before you fund your live account check for some of these:
1. Trade execution
2. Customer support relationship
3. Spreads
4. Registration procedures
5. Make sure you know to details the safety of your funds
And for traders that has already opened a live account with any of these brokers, make sure you as well check all these things with your broker. If you suspect unfaithfulness it is better for you to withdraw your funds and trade with a credible and trustworthy broker.
REMEMBER: People tend to gravitate towards the things that don’t work. It is human nature. You can learn the real “success secrets” to the markets only if you pay attention to what really works. The HOLY GRAIL is not what you would expect it to be. It is something that is different for each person. It is a hidden secret that you will have to discover for yourself, but it is obvious once it is realized.
Like JP Morgan said “To be a money master you must first be a self master”. So, the most important factor in your success is YOU.
Have a splendid time TRADING.
Thank you.
