Just Say No!
1. Do Not Expect Too Much Too Soon.
If you have dreams of Ferraris and Beach Houses dancing in your head, just stop right here. You are not going to achieve those dreams in a short time frame. In fact, not only will you not get your Ferrari, you are going to LOSE YOUR MONEY. This game is not a sprint, it is a marathon. If someone told you that you could take 10K, or 50K, and turn into a fortune in 1 year, or 2, or 3, they were either lying or ignorant. If no one told you that, but you came to the conclusion on your own, you are sorely and sadly mistaken. FOREX is NOT a get rich quick proposition. The only thing that can happen quickly in FOREX is to lose your money. If this realization cannot peacefully co-exist with your full-speed, risk-taking nature then I suggest you: 1) Make a large donation to charity. 2) Forget you ever heard about FOREX. The charity, the world, and your bank account will all be a lot better off.
2. Kryptonite Kills, Superman!
Let’s play a word association game. You fill-in-the-blank:
Superman Kryptonite = Forex Trader _________________
The answer is LEVERAGE. Use too much, and your account will die. To have any hope of long term staying power, you must follow this rule: Only .10 pip allowed per $500 in your trading account! That means you will need 50K in your account to trade one standard lot. Yes, I will lose a lot of readers right here. Also, any hope I ever had of getting the bucket shops to sponsor me just went out the window. However, to those who stick around and lend an ear, this will save you piles of money, allow you to sleep at night, and help you keep from alienating the people in your life that you love. It will also make it a lot harder for the brokers to take your money---- hence my dashed hopes of big advertising dollars coming my way from the broker community.
3. Guru, we don’t need no stinking Guru.
There is no amount of money that you can spend that will make you a good trader. Please stop buying systems, subscribing to signal services, or paying for advice. None of it will help you. Put your money and dreams to better use elsewhere.
4. Scalping is for Suckers
If you have to open and close your trades every 5 minutes, or all you want is “Just 10 pips” so you can get out quick, then you are going to have to adjust your thinking. The market is random, for practical purposes, to retail traders on small time frames. So just say no to scalping, it is a sucker’s game!
