It’s no longer news that many people have lost their monies to Forex these days and it is important that we shed some light on the recent happenings in order not to discourage others that this market could still transform their lives in future.
Recently, misinformation gathered about forex trading; trends such “forex is a ponzi scheme”, “gamble”, “dangerous investments platform that would always eat your hard earned money eventually,” and a lot more. All coming from casualties and some other rancorous elements.
Forex trading involves a lot of players (commercial banks, investment firms, central banks, hedge funds, fund managers, internet based trading platforms, online retail brokers-dealers, speculators, governments and so on.
The biggest misinformation about forex is that it is a GET-RICH-QUICK scheme. You may want to check out my clarification on “Forex not a GET-RICH-QUICK scheme,” BEWARE! Forex Trading isn’t a Get-Rich-Quick Scheme
This misinformation has led many to think they can just begin to make massive sum of money even with low capital immediately they acquire the knowledge. Whether right or wrong, in reality, there’s more to it.
Some get overwhelmed and derailed by their first win, they become managers collecting money from people. However, when it is time to manage a huge amount of money, managing risks becomes a problem. It is the same thing when someone deposits 1 million naira and loses N100,000 on a single trade which in some instances is normal. Same applies when such trader loses 10M on a 100M deposit, losing 10% on a single trade.
The point is that the emotions can’t be the same considering the amount of money involved and in the process of avoiding these losses, they lose more, and continue until they finish the account.
How to Manage Losses in Forex Trading
Like every other skill and profession, growth in forex trading is gradual. Experience is gained, and challenges are faced and overcome. Experience is never bought; it is earned. Your mentor can’t teach you that. With it and the game plan you use on the journey, you discover through consistent practice, hard work and focus in the market.
Stay Focused and Consistent
Factors such as emotion, convenience, time factor, etc. are essentials of forex trading. KNOWING ABOUT IT LIKE A PRO DOESN’T MEAN YOU WON’T GO THROUGH DIFFICULT TIMES. But the ability to stay focused and be consistent helps you to build wealth over time.
We do tell our students right from the beginning that forex is not a place to pack money immediately but you can make money and create wealth in it after a while. So it is a forever profitable business, and the largest of all industries in the world.
Don’t be Greedy; Be Feasible
It is normal and human to thirst for more, to want to get more money. It’s a normal social science of humans, and that is the drive. But analytically, it should be what’s feasible. People want to double, triple and even quadruple their accounts in a day. When your urge ever pushes you to that want, then expect the unexpected.
Hence, why some of us fall into the wrong hands and even traders that either over leverage or don’t trust their instincts and analyses because of “greed” which is indeed natural.
Put Aside Emotions!
It is important, that you apply discipline and put aside emotions when trading in forex.
There are stories of people who lose money. Then, emotions sets in, and they try to recover their funds at all cost. Most times, they end up losing more and more until there’s nothing left to lose, thus, people believing forex is a scam.
The fact is that monies can easily be lost in a forex market. It is the major part of the misinformation that most forex traders and companies have leveraged on to swindle people of their monies.
,Be Wary of the Platforms You Invest
I want to advice people to be prudently wary of where they invest their money, and be sure they understand the terms of agreement, and for traders to trust their analysis. Don’t over leverage.
Don’t Give Up!
When you lose, which is totally normal, restrategize and do your analysis again. Don’t aim to recover your losses but just trade as you would, on a good day. With consistency and hard work, the industry would forever be a win win.
Merry Christmas and happy new year in advance.
