It is a good question to ask yourself before you even think of getting involved in the process of actually making your first trade. Why? Well again that is a great question. The answer to this question is simply because unless you really get to the guts of the reason – the real reason – why you want to trade this market, the overwhelming probability is that you will fail.
Why is this? Because there is a great deal to learn, and in fact there is so much, that you can very easily end up learning the wrong information, or at the very least, information at the wrong time for you.
If you have a good enough ‘why’ at the outset, you are far more likely to start making the right decisions as to what you need to learn, and that alone will help enormously on your road to success in trading the foreign exchange market.
You see many, even possibly the vast majority, come to the market with the wrong reason in the first place. Sure on the face of it they come to enter the market to make money. That much is clear. What though is not so clear, and only gets found out later, is underlying reasons.
These reasons are hidden from view, and even are unknown to the new entrant and would be trader. What they think is true, i.e. that they want to make money, is really often a cover for other more deep and mysterious reasons that surface, unfortunately for them, much later and usually with disastrous consequences.
So what are these hidden reasons? For if we can see these, or at least understand that they exist, then we might be able to at least avoid them with the consequential savings of money, rather than the spending of it.
The first wrong reason to get involved with forex trading is to do with the fact that trading is exciting. Yes it certainly can be. But exciting involves heightening the emotions, and that is a state to be avoided at all costs in trading.
The second is a reason of vanity. This plays itself out when the trader attaches the perception of mystery involved with trading that can somehow add credibility to the trader and thereby enhance their standing amongst peers.
The third is also a vanity, but is inwardly pointing, and this is shown where the trader wants to be proved right. This is achieved by winning rather than losing.