There are both naïve and skilled traders in the world of Forex. The naïve traders have become a hot topic although skilled traders are the winners of the market. Actually, what you should understand is that naïve traders are not succeeding, that is why they have become the hot topic. If you look at the Australian traders they know the market too well. They know to handle the market in spite of the risks. It is better if the naïve traders could learn from the skilled traders. Most naïve traders aren't aware of the things that they should do and they shouldn't do. They try to compete with the professionals. They try to trade the market without any practices. It is insane to trade Forex live market without practicing on the demo accounts. You shouldn't substitute the Forex market pony racing or any other Luck-By-Chance games. The Forex market doesn't work on luck rather it is practical. It works on logic. You should allocate the time to learn, understand, and to trade the market. As naïve traders, you should be aware of certain things and we will mention them in detail.
First of all, learn about the risk factors of the Forex market. The majority of the novice traders have a misconception of this market. They consider the market leverage as their prime tools and try to get rich quick with a very small investment. It might work for the first few days but this will eventually make your financial condition much worse. Trade this market like a businessman. Calculate your ROI and develop a strategy to trade this market. Instead of risking your real money, open a demo account with the classic broker like Saxo and try to understand this market. Read lots of books and articles so that you can truly understand how this market works.
You should be aware of Demo account
At a point, we can even say that demo account is more important than the live account. Some of you might argue about this but it is the utter truth. You may think that the time on Forex demo account is a waste. You may think it is nothing but just learning. Well, Firstly, if you think it is waste of time, Forex trading without practice is waste of money. You will be risking the hard earned money on a live account although you are not sure of profits. This is actually time, energy and money waste. And secondly, it is nothing but learning. You should not underestimate the power learning. Unless you learn you can never trade Forex. The Forex market doesn't demand a degree but it does demand Forex education. As naïve traders, you should trade demo account before trading the live account. This is one of the things you should do as naïve traders.
You should be aware of the trading plan
Are you too lazy to write a trading plan? Then, you may leave the Forex market. Actually, the trading plan is like the main component of a trader's success. If you ask the successful traders they would explain about the value of the trading plan. Most naïve traders don't even have the idea to create a plan let alone the importance. They don't care about the trading plan because they know very little about the Forex market. If you want to become successful down the line, you should create a plan for trading.
You should know the market
Although this should be the initial point that we should discuss, we have brought it to the very end of the article. Not knowing the Forex market is more like a crime that you have committed. Is it possible to trade the market that you do not know? So as naïve traders you should invest your time in understanding the trading world and its concepts.