The popularity of trading of the currency in line has grown considerably in recent years. Every day online FX brokerage firms new investors – each of them in series with a twinkle in her eyes, attracted by promises of easy money to win. You can most of these companies for free, so you log on a demo account, with their trading platform get simulated operations to place an idea about the excitement of Forex trading. In the world discovered casual of the free demo many merchants you young accounts, the able accumulate gains impressive and no significant amount effort are. It seems almost too good to be true. But this success transfer from a demo for a live trading account is much more rare. Why that is so? Real trading platform behaves in the same way, the market a dealer not cares demo or real – if you are so what is different? It’s you who has changed. Is not his personality, even his style of negotiations–but those factors that affect you, are different. (online FX )
What is the factor key to the successful commercial?
The search for the “Holy Grail” of collective bargaining was a common theme in the history of the markets. There are a variety of different techniques. Those to whom the Crackle of the number is inclined to and recognize behaviors analysis may prefer technical, while she prefer more centered logical analysis in the big picture perspective macro Basic. Then there are swing, monitoring of trends or ideas special methods, such as trade also fancier as the Elliot wave theory. What is the best? Merchants, there are examples of them great success with each method.
As most of them new owners lose money, perhaps the question is more suited to make, “What is the factor key to the failure of the trade?”
Greed and fear
Trading is an atmosphere rich in the porous emotions of greed and fear. The price electricity can a particular value or at any point in time financial instrument as Confluence are thought by the greed (Bulls) and fear (bears). These two emotions are the core of humanity itself. When he published the details of market trade can be an intense experience. Sensing danger, your body releases adrenaline that acts, to emphasizing both your greed (fight) and fear (in flight). Since are so strong that they can cause irrational behavior, ignore the system, said those feelings one set would be rules or in pulse and negotiating. In fact, this is a genetically – programmed response but it is much better enabled, more sophisticated and experienced who know often also the case of the businessman, especially, if you’re playing with enemies how to manipulate emotions. (online FX )
If you are a trader – are always under the influence of one or more of these two feelings, even if not on every operation.
Effects of fear and greed in your trading
When the market rises and you buy in are greed, what it says, more and fear appear, take profits, while you still can. If you go down, afraid to be mistaken, that stays in a losing position – making and greed sometimes convinces (and buy more), so is the “lower middle” its position it easier, again come.
When the market rises and you invested – fear tells you that it is lack of easy money, but it the greed that makes, that he in obtained only after the largest increase (only if the point vice versa of course). If the market falls and you invested – greed indicates that you must enter as the price cheap, is while fear reminds that you lose this opportunity, if you do not act quickly. (online FX )
Maybe if we feel greed, fear or simply feel that it would be in a position, our emotions a little better to control. But if whisper – these two little devils in the ear, at the same time is often impossible not to hear it.
The feeling of greed
The first time Forex trading – feeling, try the emotion of greed. An ecstatic experience, your brain is flush with neurotransmitters and head dizzy with visions of riches untold over harvested. Greed is bold, aggressive, and very exciting. You can accept both mentally and physically. Imagine the possibilities!
This greed is what involved us in the negotiation of currencies in the first place-the dream of easy money and 100: 1 or 200: 1 prices the margin. US inspired and thought makes us rational reckless in favor of abandonment.
In the movie Wall Street, Gordon Gecko says: “Greed are Good”, but also very dangerous, especially if it is unable to recognize when it is greed, which the conversation. Greed is also one of the most common techniques used to manipulate people. Each schema fast rich, with the prospect of riches untold without payment is first uses his predisposition to draw any logical natural and sense through the window when greed makes a visit. The argument begins, very convincingly and ignore, warning signs would be what realized. How drunk glasses can greed you deceive and when finally awake are often in a very precarious situation. (online FX )
The fear of losing
Fear can be just as dangerous. The fear to admit that you are wrong is more powerful and easier to manipulate, the fear. The fear, your precious injured ego. This fear is possible that people do incredibly stupid things. This world is so curious that everyone thinks have the reason. Most people prefer to lose thousands of dollars from those who admit that they are wrong. It is easy to feel ashamed, in denial-of – and commercial losses, life, but this is a self-destructive behaviour. The refuse, the problem is, can take no measures, however, and just make sure, that will continue in the future. Online FX
Trading with demo
Trading is suitable outstanding for stepping into the Forex operations of the demonstration. Is real with the operations, identical except that they use “pretend” money. Demo mode allows you to a taste of what kind of events that move markets and how they move. She invites are more on the geopolitical, macro-economics and the global finance know and are incredibly positive things.
Operations of the demonstration are also entering the Rapture of greed. Trade is a medium for a purer, most of them raw and powerful, the greed you forms. The key point of the negotiations is to that the strength of their greed will make more money and more money who wins. Is intoxicating and can you full control.
But trading demo do not give that fear. Demo mode is there, have no fear. It’s like I have an eternal encounter of the jail-free card. If you start, losing badly in a demo account – just start a new to. There is no accountability for their commercial failures and only the recognition of his commercial success. (online FX )
So, your demo account doesn’t teach you dealing with the feeling of fear. This feeling is more likely that it will lead to his downfall. Greed can get overwhelmed, but fear prevents, that you want to cut their losses. You may think that cause money to lose, that would limit their losses but the stronger emotion is fear, to be mistaken and it clings to its inferior position – does-everything is gone. (online FX )
There is also the question according to the size of the company. Many accounts show give $50,000 to play. Easily 5 (500 K) lots of EUR/USD, you can buy this type of activation. If it goes 20 pips you $1000 made. Well, that. But if you open your real account – it is much more likely that gets $5000 or $10,000 in it from the outset. Now you have a set of 50 K, what means, that it, take $100 of a movement of 20 pips will do. But mentally they are mind (online FX )accustomed to getting $1000 for the movement that risk more generally at the end. The next thing I know, 200 K position has turned against you 50 pips and $1000 has lost. This is real money that has just lost. You can not simply start another account.
The case of the demo account is sufficient, losses and they are still at the top. But his real money account is probably the de activated and if you have to reach performance similar to trying, what you have exploded you in your demo account – very quickly. (online FX )
Be honest with yourself
Ultimately, while providing an excellent introduction to trading in currency – demo accounts do not predict with accuracy if you will be the commercial success with real money. The markets are dominated by Psychology and often go against what the basic logic or technical indicators suggest that it should happen. The most critical factor in its commercial success will be your ability to control your emotions of greed and fear. These emotions cloud your judgment and make trade recklessly. Demo accounts are introduced to the emotion of greed, but by their very nature they are risk-free and therefore there is no fear in question. They are also likely to be better capitalized than your real money account, what deceives you with respect to the number of turns that can expect to earn.
For all these reasons, the accounts of demonstration you allow avoid be honest with one same and this is perhaps the factor more important of all. You need know your edge and their limits and to know these-you must be honest I get same. (online FX )
That said, demo accounts are still very entertaining and educational and I strongly recommend an opening for anyone who is interested in getting a taste of the exciting world of currency trading. It is a great way to learn more about the economy, global politics, and yourself.