Many have entered into online forex trading too early without having enough practice and as a result they come out regretting because of the countless losses they’ve made after investing their hard earned money. Some leave earlier, which protect them from loosing. There are those who lose because of uncertainty of the currency price wave, but some lose due to some mistakes they make. And the worst habit people get into this trade with is greed.
Lets look at what greed is. Its Wanting more at once, and wanting something so much that you can’t consider rules or dangers underneath. That is situation some people are always in when getting into forex.
In forex one can earn a lot of money, especially with quite high leverage. Many who open practice account try out with high leverage earn huge profits from a few trades and then they consider themselves lucky to have found a business that will make them rich quickly. As human nature is known to go for achievements and money being one of the most important things in human life, one will have difficulties being patient to continue practicing until he/she gains some experience before beginning the real trading.
From the initial stage of practicing forex, once greed holds someone’s emotions, the person will experience the following which will negatively affect his/her ability in trading:
- It gets the full attention of the victim in that the person cannot concentrate on the practice so well, and as a result the person cannot learn some rules of trading, even though he/she will be practicing. Therefore after a few months, one feels is ready to start real trading.
- Greed also pushes someone to go for something when it’s not the right time. After the victim practicing for like a month and having a few trades with huge profits out of guess work, the person sees no need of more practice and jumps into the real field of trading. Such victims do realize later that it isn’t easy as they thought after loosing the capital.
- Some victims of greed are always lucky to get some profits. Some get in and start with high leverage and in three days they have made 50% profit. But in the long run, they end up loosing the whole capital, try the second and third time and with the same habit, same bad results.
- Some do leave the positions open when it’s good time to close after getting some profits. Because of the greed they want more and more profits, without considering that the price might turn against them again. Since the price is always uncertain, such victims always find the wave turning against them, profits going away, hence losing.
Looking at the definition of greed I gave above “Its Wanting more at once, and wanting something so much that you can’t consider rules or dangers underneath”, the four negative effects resulting from greed given above well relate with it. Forex trading is very possible, but with greed, and of course other few mistakes, one can’t make it. Some do end up saying “Forex brokers are thieves, they play dirty games behind the scene so that we can loose our money” which isn’t true. While experts tell them high leverage will easily wipe off their capital, greed tells the victim that high leverage will easily make them rich, which is a lie.