Transaction Psychology Of A Forex Trader
Forex Market seems as a most profitable financial market all around the World. Bidirectional transactions, leverage system vb. are the some important features of the Forex and traders can make high profits by these ways. The investors at the beginning level for the Forex Market may be very ambitious for earning big moneys and as a result of their ignorance and inexperience; unfortunately they may lose serious amounts of Money. Forex Transactions are profitable for many people and in many times but also they are too risky if you behave unconsciously. The New Forex Traders can make some mistakes on the market and so they lose Money instead of making high profits.
Don’t Be Ambitious
Forex advantages are very good ways of earning so much Money on the market. Especially with the leverage system you can make transactions with 100 times (by a rate of 1:100) of your deposit Money. This means your profits can be more than the real one. If you buy the currency at 1000 and sell it at 1200 your profit is equal to 20 dollars without a leverage system. When you use the leverage effect on the Forex Market then your profit is= 20×100=2000 dollars! But new traders can miss an important point at this system; your profit is more and more by the leverage rate but the same rate is valid for your risks! If you lose 20 dollars on the foreign currency trade then your loss will be 20×100=2000 dollars!
The Fear Of Lose
We can say that being so ambitiously without a Forex experience, information and investment plan can be too risky for losing Money. As the same, having much fear for transaction is not good and effective in order to make profits on the market. What is Forex Investment? First, learn the system and your investment instrument then practice with the demo account .