[Forex Elementary] Stay away from the following 12 types of people in forex trading

Social media brings a lot of fun to foreign exchange traders, but sometimes, the fun and sharing in social media are too often interrupted by some unreasonable, arrogant, and even ignorant people, bringing endless troubles. Today I want to talk about the 12 types of people you want to stay away from in the foreign exchange market.

When we are scanning through on social media, we might come across people like this:

1. who warns you every time you enter into a trading, reminding constantly that there are potential risks in your operation

2. who jump into judging your trading status without knowing anything about the scale of your position or whether you are willing to share your results.

3. who always argue that your market standing is wrong but has no idea that you are following the market trend. 

4. who doesn’t really care when you trade and keeps telling you that the exchange rate is rising or falling.

5. who always say you lack principles in trading when you are actually focusing on the high-profitable trading and always have stop-loss.

6. who is always asking about your opinion on a certain market when what they really want to know is the trading system.

7. who always asks what s/he should do with their own position when what they really need is a trading plan before opening position.

8. who talks about the fundamentals of trading with technical traders.

9. who is always arguing with a successful trader that special trading methods are useless when they know the person thinks otherwise.

10. who mixes making “fancy” trading graphs with really profiting in the market as the same thing.

11. who always think that those who succeed are due to the bull market or mere luck.

12. who thinks if they are not profiting in the market, no one else is.

Also, ask yourself the following questions before each trading in order to increase your chance to profit.

Q1: Where is the general trend going?

Normally, the major trend is the most important factor to be considered when placing an order, because if you are following the trend instead of going against it, even your entry point is not promising, you can still profit in the end.

Q: What are your chances to win?

Calculating the exact odds may not be possible, but through historical testing, you will have a rough idea, knowing the chances of winning, you can better pin down the risk.

Q3: What are the risk levels you are faced with?

Knowing your winning / losing ratio, you can better calculate the level of risk you take so that the profit potential of your account can be maximized. Even if you don't know the exact number, you still need to calculate what price to buy and what price to set a stop loss.

Q4: What is your exit strategy?

Finding a good entry point is important, but exits are even more important because they matter to how much you eventually profit or loss. Exiting is undoubtedly very important, so you should know the criteria for closing a position.

Q5: How are you to know when you are trading wrong?

You can stop, which will help to avoid losses. It is also important that you know what to do if your trading does not go as expected. If your trade is losing money or has not made money after a period of time, you should consider closing a position. It is important to know where to close a position.

Q6: How much profit you want to rip?

It's as important to prepare an exit strategy as to think about timing of entry, but you should also think about how much money you want to make in a single trading. This will not only help you manage risks, but also help you feel at ease when you are profitable. Don't be too greedy to close out.

Q7: Are you at the right mental state? 

It is also important to consider your mental state before you place an order. You may have just received a signal that it’s perfect to go long, but if you are exhausted and ready to go home, maybe it’s better to let go this time and wait for the next opportunity. Exhaustion or stress can be disastrous to trading.

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