Many newcomers in the world of trading do not know how to behave, what to do, what forex broker to choose for a successful trade. They are like blind kittens, who are looking for support on the forums in chat rooms, reading different books and watching video lessons of fake currency market teachers. They are coming to flashing currency rates, changes in the price of Gold, Oil and Silver. They feel part of something bigger, like members of a secret society, hidden from the eyes of other citizens. It seems, then, finally, I found my place in life and now start digging huge money, completely forgotten of the fact (and not knowing at all how one can forget what you do not know), that free cheese exists only in a mousetrap. For stable traders earnings, whatever would you trade with (whether the foreign exchange market or the stock market, futures, or index) you need to bring knowledge to a certain level, and most importantly, learn to control yourself. If you want to know who will stop you from learning, will throw a monkey wrench into your wheels, will go out of the successful trend, and then sit in a losing trade, simply go to the mirror and you will see him. Often new traders simply wallow in unnecessary literature, believing that the more knowledge, the better they get to trade in the Forex market. Often these books are written by people who do not trade on world markets, have a theoretical understanding of trading, and if you have had the experience, then negative, simply decided to earn on the sale of books, rather than trading. Typically, these detailed descriptions are filled book indexes, indicators, some oscillators, but there is no practice inside. And the main thing in trading, no matter what tools you do not trade, is risk and money management. Many of you think that this is the same and why is it important? It is completely different and at the same time equal things, describing the concept from different angles. This is the management of risks and profit. That's what is most important in trading, and no one in this world will not be able to convince me against it. No matter what is the trading strategy that you choose, regardless of the markets and brokers with whom you decide to trade your money management is the most important part. When these clear things fade away and the trader starts to get involved in predicting the market, indicators, and other unimportant things, profit starts to go down. If you read the book, which was written over 100 years ago on the stock market and the behaviour of traders who trade at the time, it becomes clear that especially nothing has changed in human psychology. Thanks to the progress the trading platforms changed significantly. There is no need to draw on graph paper hand motion graphics shares or indices, computer will make them, you do not need complicated formulas to calculate simple indicators and then transfer this calculation on paper. Now all flashing beautiful flowers available for trading are hundreds of tools, quotes are real-time, rather than with delay of the telegraph, but it does not bring man to more stable earnings. Why? Because the person is a pledge of success in the market, rather than the equipment in which he trades. In future articles, we will focus in more detail on the topic of money management. Stay in touch with Azaforex for new articles.
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