Control in Forex Trading
Even though investing can be fun and exhilarating the young investor must understand that there are some very basic rules that need to be followed. Making money can be extremely fun, but losing money can sometimes set you back in life several years, not allowing you to be able to invest any more. Let’s take a look at one simple aspect that many people forget while investing; Control
This is something that I learned later on in my investing career. When I first started I didn’t care who was in control I just wanted my money out there in an investment earning more interest then the bank was paying. I thought that the returns would stay high as the previous years, and that the moment things changed my broker would call me and suggest changing markets. I was nave to think that other people would care for my money the same way that I would. This was a painful lesson.
As I started investing my father would always tell me “No one cares as much about your money as you do”. I had invested with a friend and I automatically thought that he would put my interest first, and for the most part he did. It was inappropriate for me to think that he would care and look over my money as I would. Why? It wasn’t his! He hadn’t sweat, and worked hard for that money. Knowing this now, I take all control of my money as I know that I am the only one who will care for it as I will.
The first thing we must know and understand is that your broker is not responsible for your money PERIOD! He is there to get you in and out of trades, suggest some trades, give his opinion, but in the end we have to make the decision, and we have to live with that decision. (Unless we have totally given the money to him and he is “managing” your money) My first trade lost me money, a lot of money. I was initially angry with my broker and called him up. I asked him why he didn’t tell me to get out of that trade. He simply responded, “because you didn’t tell me to”. When we loose control and don’t watch over our own money, we will ultimately lose money in the end.
When we work side by side with our brokers we will make a lot of money. When we educate ourselves and ask educated questions to our brokers. When we can sit down at night and say, “I invested in that trade because I think it will make money because.”, and then list several reasons! This is having control, and this will ensure a very rich future and a life worth dreaming about.
Let’s think about control over money like this. Have you ever loaned your car to someone? Did they take care of it like you would have liked them to? Probably not! You tell them to put a certain kind of gas in it and they forget before they get around the corner. You almost cringe as you know that your car is not in good hands. Well, it can be the same way with money! Except that money when it is damaged or lost can hurt a whole lot more!
I believe that if you take the time to educate yourself in the area that you are investing in then you can be successful. There are many people that are investing successfully in many different types of investments. But these are normally the ones that take care of their money well.
This is one of the reasons why I like trading in the Forex market. I can maintain control of my money at all times. I accomplish this by trading with an online forum in which I can control my losses and take in profits. To think that you will invest and never lose money is foolish, but at least you can control how much you lose. And in the end you can sleep at night because it was your decision to make that trade not someone else’s.
If you don’t know much about Forex trading then log on to the website below. You will find a free e book that you can download and also many other articles that will help educate you about Forex trading. Happy Trading!
