An Important Point To Consider When Buying Books On Forex Trading

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With the forex industry booming at the moment, it is no surprise that there are lots of books available on this very subject. However it’’s important to note that these books are only useful to a certain extent.

The truth is that no books can prepare you for the wide range of emotions that you will experience when you start trading for real, ie when you are risking your own money. Anyone can enter and exit positions at will and make lots of profits on a demo account, but this is not what it’’s like in reality.

To demonstrate this point, let me give you one scenario that will often occur at some point. Let’’s say you have found what looks like a decent system and have just generated a profit from the last five trades. Now the seasoned professional will keep trading the system as normal, but many traders will be so thrilled with their success that they will start to become greedy and overconfident. Therefore they may well up their stakes and start shooting for the stars. Unfortunately this often leads to disaster and many people will destroy their capital doing this.

The reverse is also true when you start losing money regularly. It doesn”t matter if you lose money using a demo account, but it can be completely sole destroying when you lose your own hard-earned money. The trouble is that many people hate losing money so much that they will try to win it back straight away, and to do this they will often up their stakes and start placing reckless trades using no kind of strategy other than gut instinct. As you can imagine, this nearly always ends in disaster as well.

You have to be really disciplined if you want to become a profitable forex trader, and to be fair a lot of books will make this point. However no matter how many times you read about the importance of discipline, it is only when you are actively trading the markets that you will realize how difficult it is to exercise this amount of discipline at all times.

So what I am basically saying is that forex books are great for teaching you the basics of currency trading, but they will never be able to demonstrate the depth of feelings that you will experience when you start trading with real money. There are some things that you will need to learn yourself, including how to maintain discipline when you trade, and you can only do this when you start putting your own money at risk.