FOREX DIARY

There are many misconceptions and incorrect assumptions surrounding forex trading. They are rumors often said by "inspirational traders", seen everywhere on social networks, websites or forums.

Those contents are not only incorrect, but they also greatly harm the forex trading job you intend to choose, or have chosen. As I often share, the important thing is not whether we go fast or slow, but the important thing is that we need to go the right way.

As a new or inexperienced person, you need to be very careful and choose carefully what you will read and follow. Look at the leaders in the field (like Buffet, like Livermore, Soros,...), what they say, what they do,... instead of listening to the advice from the "get rich" experts above. network.

In today's article, I'm going to look at advice statements you've probably heard (many times) about trading, and discuss why they're not true. And hopefully after reading this, you will understand the reality of trading and thereby increase your ability to trade and make profits from it.

MYTH: TRADING IS ABOUT MAKING MONEY QUICKLY AND VERY FAST.

FACT: TRADING IS NOT TO LOSE MONEY, YOU MUST LEARN THAT BEFORE THINKING ABOUT MAKING MONEY.

This is probably the most common question when people look at forex (stock) trading. Trading is about making money quickly, a few thousand or tens of thousands of dollars per night. The risk is high but the profit is terrible, very fast,

Anyone entering this field has heard "people passing on such words to each other. And immediately, they took the wrong path, with a great but unrealistic expectation. Very quickly, these expectations crumbled and gave way to harsh reality, after consecutive losing orders, after consecutive accounts flowing out....

What W Buffet said: "Rule one: never lose money. Rule two: never forget rule one."

It is redundant to say that this is certainly a very true statement. Trading foreign exchange or stocks is about losing more of your hard-earned money than gaining more of it. Newbies always pay attention to the future, they are always looking for ways to make the most money in the fastest way.

If you want to make money in the market(s), you need to be a very good risk manager, which is more important than anything else.

You are not simply "competing" with other forex traders in the market, you are also fighting against yourself. You are the one

one's own toughest opponent, or as the saying goes "the biggest enemy of human life is oneself" in Buddhist scriptures.

Once you know how to protect your accounts and only save them for really good opportunities (imagine your account balance is like

ammunition on the battlefield, if you run out of ammunition your gun is just a waste), you will gradually win over your opponents (roll yourself) and start earning

Win more money, instead of losing more money

MYTH: YOU MUST BE VERY SMART AND QUICK TO BE A TRADER.

TRUTH: YOU DON'T NEED THAT MUCH, TRADING IS JUST LIKE DOING MATH.

You don't even need a specialized university degree to become a successful trader. Forex trading is not only for the most brilliant minds to do. At the level of a small individual investor (at a higher level, it's a different story), anyone can make money in the long term with forex

(You may recall the example I once shared in an article where an investor selected about a dozen people from all walks of life, from the smartest people with all kinds of degrees, to the most talented people. Normally he does many different jobs. He trains them and then gives each person a 1 million dollar account. Some people have to give up, some people fail and burn all their money. In the end, the most successful person is the one soldier. You can find a clip about this story on YouTube.)

Ideally, we have a very good sense of what is a profitable trade, and an ability to calculate and read the market. A sixth sense helps you have ideas to motivate yourself to enter orders, and market reading skills help you check a second time, before deciding whether to risk money or not? This is balance.

Specialized university degrees, numbers showing a high IQ, do not solve many problems and sometimes, they are "disturbing noise" when we read the market. Too many technical indicators , too much news and news analysis, too much nonsense that people think is superior, that is good,... I'm afraid that's not right.

People who are successful with trading, are masters at managing themselves. Learn to control yourself, from emotions to actions, and you will succeed

work with forex (and in life).

No amount of tape, no amount of high IQ, will not help you succeed when you are still trading haphazardly without discipline and risking too much on a single trade.

MYTH: TRADING IS THAT YOU HAVE TO CATCH THE EXACT TIME TO PUT YOUR MONEY IN, YOU HAVE TO GET THE TOP AND THE BOTTOM!

TRUTH: TRADING IS NOT ABOUT CATCHING THE POINTS OR THE BOTTOM, IT'S ABOUT UNDERSTANDING THE PRICE CHART.

You don't need (and shouldn't) catch the exact turning points in the market (pick the bottom) to make a lot of money, as many people think.

What you need is to know how to read charts and understand what they are trying to "tell" you. Look at the price movements, try to most accurately reflect the thoughts of people in the market, the most honest and meaningful thing (not most of the information in the market).

MYTH: YOU HAVE TO HAVE A LOT OF MONEY BEFORE YOU CAN THINK OF MAKING MONEY FROM FOREX.

TRUTH: YOU DON'T NEED A LOT OF MONEY TO START, A GOOD TRADER MAKES MONEY FROM ANY ACCOUNT, LARGE AND SMALL.

Often, new traders believe that they need a large enough account to be successful. This is not correct.

In fact, no matter how big or small your account is, you can still lose money equally quickly, even in just one night or one day.

You should start trading forex with a small account. Because everyone needs long periods of time to learn, practice and know how to make profits from the foreign exchange market. And as I've shared before, it's good if you lose money at first and don't make a lot of profit.

What about large accounts? Of course it's very good. But if you don't have the knowledge and skills, a large account means you lose large amounts of money. It's all the same.

The following: trading strategies, skills and psychology are what you need to succeed in forex trading. They are available for both large and small accounts.

Don't rush, don't be impatient. The market will always be there tomorrow, and you can trade for the rest of your life through a simple, effortless mouse click.

Sometimes money is not what you need to worry about from the beginning, just worry about how to master money-making skills. Money will come on its own. Regularly and abundantly.

MYTH: YOU NEED TO KNOW WHAT WILL HAPPEN NEXT IN THE MARKET TO MAKE MONEY.

TRUTH: YOU DON'T HAVE TO ALWAYS STAND AND KNOW WHAT'S GOING TO HAPPEN NEXT, YOU MUST TRULY UNDERSTAND AND ACCEPT THAT YOU CAN'T KNOW FOR SURE WHAT'S GOING TO HAPPEN

This is not so.

There are random expectations with every trade you put into the market. There are random outcomes with the amount of money won or lost. Because there are millions of factors that can affect the market. A trade can turn completely against your judgment, even if you believe in it 100%.

Every trading strategy is aimed at helping you understand the market and the psychology of those who are trading in it, so that you can make a profit. Suppose it helps you increase your winning probability to 60% but basically it is still 50/50.

So, don't convince yourself: I am right, and I am always right, even I MUST be right. You may start to take huge risks, put a lot of emotions into trading. You are not anything, you can lose 4 times out of 10 and still make money because of risk-reward management (for example, a straight trade makes money equal to 02 losing trades).

Standing up for pride makes you unable to accept a losing trade, there are many people out there who would rather burn their accounts than cut their losses. Think of losing trades as a mandatory cost of running a business. There is always a random ratio of winning and losing trades, any trade no matter how confident you are, can be a losing trade

And that is of course very normal.

MYTH: YOU MUST HAVE A HIGH WIN-LOSS RATIO TO MAKE MONEY. TRUTH: YOU DON'T NEED THAT, WHAT YOU NEED IS TO MAXIMIZE POSSIBLE PROFITS.

You've probably heard about the risk/reward ratio many times, but do you really understand its power?

You don't have to win every trade to make money in the forex market. In fact, you don't even have to have more winning trades than losing trades.

Don't believe me? That's the power of risk/reward.

Let's say your loss ratio for each trade is 1:3. This means you risk 1R (where R is the amount of dollars you risk) and earn 3R,

three times the amount of dollars you risk. With this ratio, you only need to win 25% of your total trades and still make money

MYTH: AUTOMATED TRADING ROBOTS ARE THE KEY TO SUCCESS

FACT: NOT TRUE, IF IT WAS TRUE WHY WOULD THEY SELL IT?

Any trading system that is run entirely by robots is doomed to fail, sooner or later. Market conditions change

every minute. It takes an experienced, trained brain with many skills to know what is good and what is bad in the market.

If trading was as simple as putting a robot in your computer and that's it, everyone would be a billionaire. And a very simple question that

you can ask yourself: if robots are so effective, why would they sell them to you for a few dozen, a few hundred dollars?

The most famous traders use their brains, not robots. Don't let the fancy, high-level stuff waste your time and money. Focus on learning how to trade, how to control your psychology and you will upgrade your brain every day.

Then, once again, the money will come.

MYTH: DAY TRADING IS THE FASTEST WAY TO BUY A ROLLS-ROYCE.

TRUTH: DAY TRADING CAN MAKE YOU LOSE MONEY FASTER THAN GOING TO THE CASINO.

Lower time frames (below H4) give you more opportunities, but also the chance to lose money.

They mean more than just small, meaningless "waves" of the market. Fake indicators are here and there to trick you.

Trust me, by following daily candles (D1) you will make more money, have more time, and much less pressure. Try a month of only a few really good trades, giving yourself a good risk/reward ratio.

It's easy, it's easy, and it's effective, you should check it yourself.

MYTH: MY FRIEND SAID THAT TRADING IS GAMBLING, STAY AWAY FROM IT.

TRUTH: FOREX TRADING IS COMPLETELY GAMBLING, IF YOU LET IT BECOME THAT.

Stocks, there's money. Forex, even more gambling.

I've heard a lot of people say that, think that. Most of them are people who have never traded or throw in a few coins to follow the trend. Many even think that this job is a scam.

In fact, you can totally gamble with forex. By trading randomly and continuously, not bothering to set a stoploss, betting all or nothing.

But you can consider forex trading as a real career and try to become a professional in it. Learn how to trade, learn how to read the market, learn how to control your psychology,... so that you only risk your money when you see a good opportunity.

For example, in Xoc Dia or Ba Cay, you have nothing in your hands but luck. There is nothing to help you decide whether to risk your money or not? Not to mention that most of these types of gambling are fraudulent,

With forex (or stocks), you have market conditions, you have displays of price fluctuations that reflect the market sentiment,... you have a lot of facts - data. And most importantly, you have the right to decide when I risk placing an order.

[Poker is an exception when talking about the word gambling. Everyone has two cards in hand, everyone has the data to enter (from 3 to 4 to 5 cards), everyone has the right to follow or fold, everyone has the right to increase the amount of risk they accept to bet, Poker is the king of money. And I also have an article about playing poker will support forex trading, you can read it in the blogl

A new year has come, nhatkyforex sincerely thanks for your love, respect and support over the past time.

I wish you good health, much joy and much happiness and peace