When you look into Forex trading at a commoner’s perspective, you will feel that Forex trading is very complicated and troublesome, especially when you read that risks in this business is always included, thus making you afraid if you are interested in taking a shot at being a trader. But when you muster the courage to become a trader, you may think of the Forex trading world as complex and complicated with all the things you need to learn.
New Traders Complicating Forex Trading
The first reason why Forex trading becomes hard for a newbie is a lack of self-confidence. This is when you look at sources to read for some tips, tricks, and real rules of the trade. Newbies do not have experience, and you need the expertise of other people so that you do not make a mistake of losing your money. However, one thing ironic is that such tips and tricks being shared to save people from avoiding lapses are usually results of experiences from committing mistakes.
This is where you cannot really decide on taking risks and continually skipping from one system to another. You keep on switching from one indicator to another, not even understanding the nature of the indicator in which you are setting your trading aspects with. You often believe in what you see than knowing the actual behavior of the market by doing the math. You may even end up to a point wherein you are locked on a “paralysis by analysis”.
The second burdensome factor that trembles a newbie is the fear of losing money, which many people are experiencing. This is one eternal truth that must be learned by every trader. Losing is part of the game and you cannot have a 100% chance of being successful, even if you do your best of achieving it.
The Experience of Paralysis by Analysis
It may sound a bit of wordplay, but the whole thought is in its very words. When you are reading and relying too much on indicators, you may be focused on what the indicators will tell you, and not observing where the market is going. You can be surprised if you encounter that moment where merely watching the market trend could have saved you so much time and effort. You have been paralyzed with what you should do because of being too analytical with your market activity.
Simplicity of Forex Trading through Trends
When you get away from the complications of indicators and other in-depth reports and readings, you will notice one tool that can make you see the big picture of Forex trading. Watching how trends go in 3 months, 6 months, or 1 year will make you think that this system of trading is never complicated, to begin with. There are only two major trends in the market, which is rising up and falling down. When the lines are going from the lower left to the upper right, it is an upward trend. When the trend is from the left up going right down, then it is downward. That should be as simple as you can interpret it.