6 Reasons to Avoid Forex Trading

Forex Trading is a complex activity, which requires commitment. Net of the often not very transparent advertising campaigns of some Brokers, specialized in spreading optimistic but fake prejudices, to start trading strong motivations are necessary. The topic of "motivation" is rich in facets. In fact, not all motivations should be taken into consideration. Some, on the contrary, are daughters of the incorrect communication we mentioned just now. The advice, therefore, is not to start trading, if the reason why you do it is wrong, and stems from a prejudice. We talk about it in this article.

Don't start trading if the reason is that...

You want to make easy money

The mirage of "low-cost wealth" at your fingertips has always dazzled humankind. The concept of a shortcut is well imprinted in the collective imagination. The most dishonest, the least equipped from a human and ethical point of view, take to the bush. However, these dynamics can also involve good people. Even honest individuals can give in to the "call of the shortcut". And this is what actually happens to those who have an opinion of trading that does not correspond to reality. Trading is an activity that allows you to earn a lot, it's true. The "problem" is that there is nothing easy, nothing simple, nothing to be taken for granted. On the contrary, to achieve the goal it is necessary to work hard, acquire skills, gain experience, learn from your mistakes and exercise that wonderful virtue that is patience.

You long for financial freedom

Financial freedom is one of the most popular themes. It has been for a decade now, when the economic crisis forced many to have a profession that does not satisfy them, but which cannot be abandoned under penalty of indigence. The need to settle for less, to sacrifice one's dreams simply to survive and bring home the bacon has created fertile ground for those who teach how to achieve financial freedom. Now, the concept of financial freedom is in its own way noble. However, it is so for reasons that are not at all obvious. It is as a goal of a path studded with commitment, dedication and intelligent choices. Again, there is nothing assured. In any case, to be financially free, an individual must create a system of passive income that allows him to obtain income without always and in any case acting in the first person. A result that is theoretically achievable in trading, but extremely complicated. Also because it imposes very advanced skills, and indeed rare, about automatic trading. A condition that has nothing to do with that of the beginner trader, as with that of the average trader.

You want to have a cool style

The issue concerns the way in which the collective imagination "sees" the winning trader. An image marred by movies, TV series and novels. An image that portrays the trader as an individual who is always sure of himself, devoted to amusements. In short, who "has a blast" and lives it up. None of this is true. We are not saying that all traders have a sad life. We are stating that the question of amusements and life has little or nothing to do with trading activity. Indeed, too many distractions can compromise the trader's lucidity and his ability to react. Playful activities (let's call them that) if poorly managed can lead to ruin. Therefore, if you think you are embarking on the trading adventure because your goal is to live the good life, know that you are definitely off track.

You hate your job

The issue is linked to that of the search for financial freedom. Many approach trading because they can't take their job anymore. Maybe they feel caged, limited by a routine that forces them to a sense of perennial boredom. In fact, they operate in toxic work environments, which generate stress, disappointment and suffering in a continuous cycle. Well, going directly to trading means throwing the baby out with all the bathwater. The fact that the job you are doing as an employee at the moment is terrible does not mean that all other employee positions are. Certainly, it is not a sufficient motivation to undertake, perhaps from scratch, a complicated and new activity. So, if your only motivation is "I hate my job", desist. Or, better still, find out more about trading and find the right motivation elsewhere.

You have debts to pay off

This is a motivation that is linked to the issue of "easy money". Indeed, to better say, of "fast money". After all, those who are burdened by debt clearly feel the need to scrape together money quickly, to satisfy creditors and start over with a new life. A noble purpose, but it cannot be carried out through trading activity. Debts have nothing to do with trading, and vice versa. Also because, especially for beginners in the business, trading does not allow you to make money quickly. On the contrary, a good deal of apprenticeship is necessary before transforming it into a profitable activity. Patience is an irreplaceable virtue for those who take trading seriously. Not to mention the fact that, to begin with, a certain capital is still needed (better if in the order of thousands of euros). So, if your only motivation is to pay off your debts, give up the idea of trading.

The right motivation

So, why start trading? Below is a list of "healthy" motivations. You want to embark on a journey. Exactly, trading is a journey. First of all of study, and only later of investment. In any case, you never stop learning and growing. The trader makes a journey that leads him to become a winner, a journey that enriches him from a human point of view, and not just an economic one. In short, trading is a challenge, and as such it should be considered. You want to make money, but you know that it takes time and effort. Obviously, you trade to earn money. From this point of view, there are no differences compared to the vast majority of work activities (even if it certainly cannot be said that trading is a job in the strict sense). However, those who make this motivation their own must be clear in their mind that it will take time, that commitment and mental/intellectual efforts will have to be made. You are passionate about finance. There are those who approach trading because they are passionate about finance, economics and investments. In this case, undertaking a trading activity can be considered as a natural outlet. Moreover, finance enthusiasts have an edge, they start with an advantage. In fact, they carry out the training path with greater serenity and motivation. Often, "they already know something about it". Certainly, especially if they read specialized media, they are already familiar with the jargon and language. You have a surplus of capital and want to diversify it in an unconventional way. This is a more technical motivation, but one that can play an important role. Diversifying is the best way to protect your capital from market risks. The more you diversify, the better. So, why not diversify a portion of your capital in trading? Obviously, you can operate this reasoning only if you have sufficient money available. Finally, let's specify that these motivations are not mutually exclusive. In short, one does not imply the absence of the other. An individual may still be moved by the desire to diversify, and at the same time be passionate about finance. Likewise, he can be ambitious from an economic point of view but be willing to work hard to achieve his goals.