By: Charley Warady
There have been many articles written about the over-zealous Forex trader. The Forex trader that can't wait to get into the market, bounce around, and do just about anything to keep busy. He'll switch positions at the drop of a hat and spread himself out over many different trading pairs.
He is the Forex trader that always has a position on, but never keeps a position for long. The philosophy of such a Forex trader is that of: “If you throw enough stuff against the wall...something is going to stick.”
If this is something that works for you, then by all means, no one can debate success. However, not much is said concerning the other side of the coin. What of the timid Forex trader?
The person who wants to get into the market, but is extremely skittish about doing the wrong thing at the wrong time. It's one thing to be conservative in trading, but it's quite another to be downright fearful.
The immediate answer that any seasoned veteran Forex trader will say is that person should not be in the Forex market at all. It is no place for the meek and the market will eat you up alive. The market is like a predatory animal. It can smell fear.
It will attack and leave nothing but bones. With advice like this, it's easy to understand why some people avoid the market even though their interests lie in exactly the right place.
The truth of the matter is, there's nothing wrong with being cautious, or even over-cautious. As long as the Forex trader understands the age-old basics of risk/reward, the market will offer an opportunity for any kind of Forex trader.
Let the market decide who should and who shouldn't trade Forex. Don't listen to those crusty old-timers. They're just trying to scare you. If a Forex trader is satisfied with what would seem meager profits, but isn't risking very much at all, then that's fine. After time, and once a basic comfort zone is established, the over-cautious Forex trader may advance to being just a cautious trader. Or not. As was said before in the opposite scenario; no one can argue with success.
Oftentimes, Forex trader's shyness towards the market comes from an under-confidence of his knowledge of the market and Forex in general. He might have a basic knowledge, but he's a little wary when he matches himself up with the seasoned veterans. This is also understandable, but entirely solvable.
The answer is: read. There is a plethora of information about the markets on the Internet. There are classes and tutorials all over the place regarding trading and its intricacies and nuances. Take your time and utilize the resources available. The learning experience never stops when trading. It is a continuing process, and unfortunately, mistakes and errors are going to be the cost of some of the education. There is no way around it.
Use that demo account of yours. That is what it's there for. It's not there for a game and amusement. It is a valuable learning tool that even the most experienced Forex trader should be using on occasion.
So, get over the fear. You're no different than anyone else in the same situation, and many before you have gone through the exact same thing. They have not only survived, but they're making a great living doing something they love to do. With no fear.