On the basis on what I heard some four years ago or thereabout, if there is one market that ought to have gone into oblivion due to people’s complaints, it would have been the forex market. But down the line, while other kinds of side businesses – MMM and other pyramid schemes get a mention here – have failed woefully, forex trading like ‘a cat with nine lives’ keeps gaining prominence. Those who had once predicted its doom are now coming back to give it a try again.

The Reason
In case you are wondering why forex trading will not just go down the drain; the reason is simple: No matter the kind of economy – whether traditional, mixed or you name it – a country operates, there will always be some forms of foreign exchange being carried out at every point in time. The beauty of it however is that, unlike the former times, forex trading is now open to everyone. It is no longer the market for made for the rich alone.

Notwithstanding, you will need to look out for the right platform and/or expertise to help you form a solid foundation upon which you can build a formidable business. Forex trading has not been a bad or unprofitable business in the first instance – it has turned average income-earners into millionaires. However, the difference between those who have hit the ‘forex goldmine’ and those that keep seeing it as a ‘landmine’ is down to unhealthy mentality and/or disposition towards market operations and investment decisions. Well, it suffices to say that ‘discipline is key’ in forex trading.

3 Habits that can lead to failure in forex trading
Forex trading can be really lucrative for anyone who does it with commitment and discipline. Nonetheless, there are certain pitfalls that could ensnare and stifle the progress made by a newbie [and even a regular trader who fails to tread with caution]. These pitfalls are often catalysed by habits picked up by traders in the course of doing business. Three (3) of these habits and/or mindsets are hereby discussed:

  • Slothful habit: The lure of making some good cash has often made people jump into forex trading without taking time out to study the terrain they are venturing into. The truth is that forex trading does require some learning, and it’s best for anyone who wishes to succeed at it to equip himself/herself with some basic knowledge before making any attempt to trade. Even right before you start trading on Demo, you ought to have had grasp of some common terminologies associated with forex trading. Though it may not be possible to learn it all at once, there is no doubting the fact that whatever knowledge you garnered will ensure that you appreciate the market better and also make steady profits when you eventually go into trading proper. Additionally, as you move on in the business, you could find it valuable to subscribe to one or two channel(s) from you can learn from expert traders.

  • Get-rich-quick Mentality: There is an avenue of making great profits in the forex market but it is important to understand that it is no ‘pyramid scheme’ or money-doubling enterprise. This (get-rich-quick) mindset has, most times, caused individuals – who are either ill-advised or overly adventurous – to trade more (currency) than necessary; they put in so much money without setting a baseline thus setting the tone for a ‘disastrous’ business ordeal. It is therefore necessary to bear at the back of your mind that as profit-making is highly possible in forex trading so is the tendency of recording losses a reality. With this kind of mindset, a prospective trader will be able to trade with caution; taking calculated/informed risk.

  • Rollercoaster Mindset: That you have invested a certain amount of fund into forex or even made 2 – 3 straight gains, does not mean you should relax and take a backseat. Forex trading is not wholly auto-pilot, and should not be operated as such. There is a need to devote time to it as you would for any other business you are serious about. Monitoring and keep up with trends will not only help you stay informed but also ensure that you make decisions that would ultimately see reaping good ‘harvest’ on a consistent basis. On the long run, this act will aid in building a sustainable forex business.