The Forex Trading Risk Warnings
If you have been looking in to trading or have been trading for a while, you will have seen all the risk warnings on every website you visit. Obviously this is for legal reasons and basically mostly about website owner/s covering themselves. It is beyond that obvious reason that I wanted to discuss in this post.
When reading these risk warnings there is a lot of content that has you saying to yourself “blah blah bah, I know, there is risk” and although you do need to acknowledge this risk, in my opinion there is one extremely important sentence that you need to acknowledge the most. It will always read something similar to this;
“Don’t trade with money you can’t afford to lose”
As the years pass and I keep on teaching it becomes clearer and clearer to me that trading itself, from a technical standpoint, is not really that hard once you understand a few things. Teaching people those few things can usually be done in just a few months, turning out profitable traders though is not so fast. The main reason for this is that trading psychology can not be taught and takes different lengths of time to overcome for different people. Now, if you do trade with money that you can’t afford to lose you are just making it all much harder than it has to be.
So feel free to skim over these risk warnings and most of it is mumbo jumbo, the obvious points are that trading is risky and you can lose your entire account if you have not taken the time to learn properly. Do however pay the most attention to a great piece of advice that all risk warnings will give you.
“Don’t trade with money you can’t afford to lose”
You need to fund a trading account and pretend that you just spent the money, it is no longer yours. This thought will not solve all of your trading psychology problems but it is a good start.
