Not Being Psychology Tuned
This is one of the most underestimated subjects when it comes to trading. One
of the main principles of financial markets is that the price of each instrument
is based on the perception of each individual participant "the crowd." In other
words the price of each instrument is determined by the fear, greed, ego and
hope of all traders.
Fact: Being aware of all psychological issues that affect the decisions made
by traders will definitely put the odds in your favor.
Lack of Education
Education is the base of knowledge on every discipline. As lawyers and
doctors require several years of college until they get their degree,
Forex traders also require long
years of study. It is better to have someone experienced to guide you through
your trading, since some information could take you in the wrong path.
Fact: The market teaches us invaluable lessons on every single trade made.
The process of education for a Forex
trader could take for ever. That's right, we never stop learning. We should be
humble about the markets and our knowledge; otherwise the market will prove us
wrong.
