‘There is no free lunch’ is the only monetary axiom that bears truthfully to all conditions. Sadly, this truth is taken lightly by many who choose to indulge in the seeming purple patch of forex trading. The basic precept is that one has to have a pot of money to take a few risks. Even a diehard forex trader needs to have alternate money source to hedge in for losses. And the ready excuse for the rest of the lot is the same: they lost because they didn’t have enough to invest.
Archive for the ‘Trading Psychology’ Category
Forex trading can be a risky business. As traders, people have two kinds of mindsets; one that is bent towards speculation and the other that is bent towards hedging. “To each his own” is the all-important adage of forex trading. Now, there are those typical practical pitfalls that make a trader err but then there are quite many psychological pitfalls as well.