- I’m going to make a lot of money with Forex!
- Let’s try it as a side business.
You may be one of the people who started Forex with such a thought, but found that it was not going well and realized that “I need to study properly ……”.
The fact that you realized that you need to study is desirable in itself, unlike many people who lose money and lose, but if you are not careful, your study may become meaningless.
In this article, we will discuss some of the things that a beginner forex trader should be aware of when engaging in a study, some of the important mental attitudes, and the trap of searching for the Holy Grail.
These are important points that can affect your future trading results, so if you are just beginning to learn Forex, please read this article especially carefully.
- It’s all well and good to think, “Let’s study forex,” but…
- Are you perhaps trying to find “someone who can lead you to victory”?
- The “unwanted future” that dependence invites
- The bottomless swamp of the “chalice search”
- The “zero or one” or “believe it or not” mentality is also a manifestation of dependence
- Dependence also creates the temptation to “copy trade”
- What to expect when a beginner in Forex studies
- Preparing Beginners to Study Forex – Summary
It’s all well and good to think, “Let’s study forex,” but…
Many beginners of Forex tend to put their money into their accounts and start real trading when they get a “chance to make money” in Forex.
Then, with some beginner’s luck and some not, they unexpectedly suffer losses and realize “I need to study this properly ……”. This is a standard trend.
Some people realize that they need to study Forex before they start real trading, but they are in the minority.
Now, when they decide to “study FX” in such a way, most of them will probably try to gather various information by browsing through explanations of trading methods on FX blogs or reading books on FX technical analysis.
In fact, your probability of success in forex trading will differ greatly depending on “what kind of attitude you take in gathering forex information” at that time, and you may fall into an unexpected trap.
Are you perhaps trying to find “someone who can lead you to victory”?
There is nothing wrong with gathering information to learn about FX.
However, at this time, I would like you to think carefully whether you are not collecting information with the feeling of looking for “someone who can help you win”.
Even if you are collecting information with a superficial feeling of “this information seems useful” or “this book seems easy to understand,” please pay attention to whether or not you are thinking the following at the “root” of such feelings.
- Is there any way that I can do this and be absolutely sure? Is there somewhere I can do this?
- Will the person writing this tell me the right way to win?
- Is there anyone out there who can help me win?
As you may have noticed, this is dependency.
In other words, you want someone else to guarantee your success.
The “unwanted future” that dependence invites
Such dependence may unfortunately prevent you from winning no matter how much you study FX.
In order to achieve results in Forex, various abilities are required, such as “ability to understand the current situation,” “ability to observe,” “ability to solve problems,” and “ability to put things into practice.
These abilities are, in other words, “active skills” that allow you to work on the subject.
These abilities do not necessarily need to be at a high level, but a dependent mindset can seriously spoil such abilities.
When this happens, instead of studying to improve oneself, one may begin to look for ways to win while remaining in one’s current immature state.
What lies ahead is “the search for the Holy Grail,” the “unwanted future” that is the furthest thing from winning at Forex, and this is a big trap that awaits the Forex beginner.
The bottomless swamp of the “chalice search”
If you only know “information” such as FX winning methods and secret tricks, you should be able to win without changing your current self – that’s what “searching for the Holy Grail” is all about.
This is very attractive because it requires no effort to study trading and no effort to change oneself.
If you hear that “XXX method is good,” you pick it up and try it, and if you hear that “XXX system is great,” you try it again.
However, after a series of losses or a few defeats, they say, “This is no good either,” and start trying the next “XXX technique” again. ……
And then they get upset and say, “All the trading methods out there are fake! When a winning trader gives them advice on a trading method, they say, “That was a bad method,” and stop listening to them.
Such a feeling stirs up the desire for “real trading methods,” and one sinks further into the bottomless pit of searching for the Holy Grail, thinking that “there must be a real secret method somewhere,” and one cannot escape from the trap.
The “zero or one” or “believe it or not” mentality is also a manifestation of dependence
One thing that makes it difficult to realize at first glance that one is searching for the Holy Grail is that one collects and studies forex information with an “all or nothing” approach.
For example, they collect various technical analysis information, but when they find any inconsistency or inconsistency, they discard it, saying “This is wrong, false forex information, or useless.
This is a bad pattern of perfectionism, which is nothing but a trap of searching for the Holy Grail, saying “there must be a perfect method or theory somewhere.
As a result, it tends to be a choice between “believing or not believing,” and it is a manifestation of dependence in that it is searching for “something worth believing in.
Dependence also creates the temptation to “copy trade”
If the search for the Holy Grail does not work, or if the person is dependent on others to do something about it from the start, the temptation to copy-trade tends to be overwhelming.
And it is important to note that this copy trade is also a trap in the search for the Holy Grail in disguise.
Copy trading is the act of copying “entry information” written on social networking sites such as Twitter and message boards.
For example, on Twitter, you can find charismatic traders who tweet about their trades.
If you follow such traders and see a tweet that says, “I just entered the market at the exchange rate of ____,” you immediately take a position in the same way.
At first glance, it may seem like an effortless way to make a great trade, but there are many pitfalls.
I can’t bear to hold the position
In copy trading, when the rate goes against you immediately after entry or when you do not take profit even if you have unrealized profit, you tend to become mentally unbearable.
The charismatic trader who is copying the trader continues to hold the position, but you say, “It’s OK because it’s profitable,” and take a chicken profit or cut your losses because you can’t stand the slightest unrealized loss.
You believe in the entries of the charismatic trader and copy them, but when the trade starts, you become skeptical and half-heartedly bring your own ideas into the trade.
Unable to accept a loss
When you see a tweet saying that you have finally “cut your losses” after copy trading and holding on for dear life, if the amount of loss at that point is large, you may not be able to accept the loss and may end up kept in mothballs (continue to hold on without cutting losses with unrealized losses).
One of the reasons why charismatic FX traders are able to achieve good results is because of their accurate stop-loss cutting.
If the crucial loss-cutting step is not copied, the prospect theory will naturally result in larger losses and smaller profits, and the total results will be far from those of the charismatic trader, so it is no longer a copy trade.
And since it started with a sense of dependence, if the losses increase or the results are not as expected, you tend to feel “cheated or betrayed,” which may ultimately lead to a painful experience.
As I mentioned earlier that “copy trading is also a search for the Holy Grail,” if copy trading does not work, there is a danger that you will search for another charismatic trader, saying “there must be another real forex trader,” and repeating the same thing.
What to expect when a beginner in Forex studies
Thus, if dependence is the great enemy in FX, what kind of feeling (mental attitude) should we have?
Keep in mind that there is no easy or simple way in the world of forex trading
The first thing I want you to accept as a basic premise is this
- There is no such thing as someone will teach you everything and all you have to do is that.
Not only in FX, but also in the market world, there is no such thing as “anyone can win by doing only this.
I often see questions on the Internet such as, “What is the only thing I need to do to be OK in Forex?” However, we must say that it is difficult to be successful with such a cost-effective approach, and there are no educational materials or curriculum that can help anyone win easily.
Fortunately, there are a few books, online information, and educational materials that can help you understand the essentials of the market.
However, it is important to understand that it takes more than a little effort to make use of these materials to produce results.
Same as being able to ride a bicycle, stilts, etc.
When you hear it like this, you may feel that forex is an incredibly difficult and demanding world.
From a different perspective, however, it is possible to be successful in Forex if you learn and practice the essentials that lead to results.
Although such experience does not guarantee success, you will not be able to get the chance if you don’t do so in the first place, so please make sure to put in your own efforts in your own way.
At this point, we would like you to remember that you must have already had a success experience that can be used as a reference.
You have already had a successful experience that you can refer to: riding a bicycle, riding stilts, riding a unicycle, or even getting a driver’s license as an adult.
When you ride your bike out into the neighborhood, do you think or feel any of the following?
- I wonder if I will fall down all of a sudden.
- I wonder if I will be able to get home safely.
- I am afraid to run unless I have someone to follow me.
The reason you don’t feel this way is because you have confidence in your ability to ride a bicycle, and because you have such firm confidence, you no longer even need to be aware of that confidence.
There is a solid “self-belief” in yourself to be able to ride a bicycle.
Traders who have been continuously winning in the Forex market also have the same kind of self-belief.
Just as you pedal your bicycle to your destination without hesitation, a good forex trader is also riding his bicycle without hesitation, making a series of trades with a positive total return.
They may run into trouble once in a while, or lose their balance and almost cock themselves, but they are confident that they can handle such problems on the fly.
Winning at Forex is similar to this experience, so by acting as if you are trying to replicate your past successes, you will increase your chances of getting results on the Forex market.
Sure, we’re all beginners at first.
In addition, there is something else to remember on top of that. That is “to quickly let go of the mindset that you are a beginner.
When you start something new, everyone starts out as a beginner.
Will I be able to do it? Is it too difficult? It is an unavoidable reality that everyone starts out in a state of I don’t know what I can do.
No matter how small the action is, you literally don’t know if you can do it or not until you try it. Therefore, it is important to first take a small step with your own feet.
For example, if there are 10 steps in front of you, the third step may seem very far and high before you start.
However, when you manage to climb the first step, the third step from there looks different from the first step from below.
You may think, “I thought it would be higher, but I think I can get up there. or “I didn’t realize it from the bottom, but there is a way to make it easier to climb.
So, instead of worrying about what to do at the starting point, let’s move forward, even if only a little, to “higher than where we are now.
In the FX world, you don’t get a favorable handicap just because you’re a beginner
In the world of sports and games, beginners are usually given a handicap. However, in Forex, there is no such handicap. All participants are fighting on the same stage.
That is to say, it is like a heavyweight boxing champion and a beginner standing in the same ring or playing shogi with Meijin Hanyu.
In the world of FX, it is not acceptable to say “I am a beginner, so please go easy on me” and if you bring such a naive idea, you will end up getting beaten up.
The sooner a good beginner gets out of “novice” to “inexperienced professional” the better
Realizing this fact, a forex beginner with initiative and self-motivation will “get out of the novice quickly!” and they start to think, “Let’s get out of this beginner’s life as soon as possible!
And, they come to accept the fact that they are treated as an equal professional in the world of Forex, no matter how unskilled they are, and become aware that they are a professional, although unskilled.
This change in consciousness and mindset will greatly affect the learning and quality of your trades, and will be the key to your survival and profit in the FX market.
I encourage you to take some action, let go of your naivete as a beginner, and get serious about learning and improving your skills as an “unskilled professional Forex trader”.
The answer is in the charts. Let’s look at a lot of charts to verify it
Finally, one of the most important words I would like to share with you as a beginner forex trader is ‘the answers are in the charts’.
Whenever you have a question in trading, or when you are not sure what to do, the answer is all there in the charts.
The answers to these questions are in the charts.
It is important to find your own answer to the question, “In such and such a case, it is easy to remain profitable if I do this,” from the past chart by yourself, which is called “verification.
The answer you find through verification is not necessarily something “nobody knows” or something “complicated and difficult to understand.
The answers are often simple and can be noticed by anyone who looks at a chart.
What is important is to find your own answer through verification and to go through the process of accepting it with deep satisfaction.
Many traders lack such “trust in the answer,” and as a result, their trades become vague and ambiguous, they are swayed by their emotions, and they accumulate losses according to the prospect theory.
Please refer to the article below for a detailed explanation of the specific verification method and its precautions.
Preparing Beginners to Study Forex – Summary
When you start studying Forex, look at books, blogs, educational materials, etc., with the mindset of choosing someone who will “show you the way forward,” not someone who will “let you win.
It is important to keep in mind at the outset that it is “you” who will be walking that path.
Winning at Forex requires a high level of self-trust and self-discipline. When you hone these skills, it will not work if you are dependent on them.
The feeling that “someone will tell me how to win” or “there is a way to win somewhere, and if I can find it, I can get by” indicates that you have a strong sense of dependence.
Such dependence will keep you from developing your trading skills and gaining experience, and may lead to an endless search for the Holy Grail.
You are the only one who can make you win, and the best way to build self-belief in Forex is to observe and verify numerous historical charts.
There are no must-win strategies and no cheats in the world of the markets. Please follow the right path.
This is how to avoid the trap of searching for the Holy Grail and how to prepare yourself for studying Forex as a beginner.
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