Forex Broker – 4 psychological pitfalls that can work against any broker

Forex BrokerForex Broker trading frequently comes down to two things: experience and psychology. Once you familiarize yourself with the ups and downs of the market, forex becomes a familiar place where you can put your new acquired expertise to good use.
But experienced traders can tell you that as familiarity grows some psychological obstacles might get in the way of a successful long-term forex broker trading. Of course they will also tell you that if the road didn’t have any obstacles, there wouldn’t be a point taking it in the first place.
So beware of these very common pitfalls that every forex broker has come across in his way to reach forex nirvana.
-The desire to be rich: This is a very human desire and wanting to get ahead in life while having money is not bad in itself. The problem lies in having it as the top priority when trading. Fear and greed are the most common manifestations of this desire and they inevitably lead to other obstacles.
Things such as over trading or risking too much have fear written all over them. Forex will not make you rich in the short term. It will likely take years before you are trading well enough to leave your day job. Think of forex as a career, one that in the long run can give you a strong financial ground to stand on, if successful.
-Fear of losing: We are taught from a very early age that money is the most important thing, and that without it, we have no real value. This, in turn, causes people to be afraid of losing money, because the reverse is also true: if you lose money then you are also a failure, and this can generate panic in beginners when actually taking a trade.
Fear of failure can make some forex broker newbies make rash decisions, while others don´t even summon the courage to open a live account. But losing money in the market might actually be beneficial, as it could teach you that the real damage comes from the fear of losing money and the bad decisions that derive from it.
-The need to be right: While you might need a psychologist to figure this one out, the need to be right could be a real account killer for any forex broker. Sometimes traders have such long and successful streaks that they feel like everything they do is right and the market has to adapt to their newfound confidence.
And while having a strong confidence to base your trades in is very important, sometimes that confidence turns into oblivion of outside signals that could point you to a better direction, a direction you missed because you felt like everything you did was the appropriate thing to do.
-Being undisciplined: A trader who lacks discipline can never make it in this business, yet many forex brokers are guilty of lacking discipline for many reasons.
The main culprits are traders that don’t have the necessary discipline to stick to a system and are constantly tweaking and turning their trading method. It´s important to be patient and to trust your own game, otherwise you will just go from system to system without seeing any real improvement in your trading.
It is also important to realize that all trading methods combine high winning trades with below average periods. This is because market conditions fluctuate, so don’t change a perfectly good strategy just because it performed badly for a couple of weeks. Give it time, and learn to be disciplined.