Trading without risk-reduction measures is ignoring the damage that the market can cause to your mental, emotional, and financial well-being. You are the perfect candidate for a catastrophic, life-altering event in your trading career if you enter the market without first taking precautions against it.
When you trade, you should never forget that any security on the market is a fable. It is not real. Trading without taking precautions to reduce losses is directly exposing oneself to financial self-destruction.
Before you begin trading, you should always ensure that the appropriate measures are in place. You will open the door to one of the most terrifying rooms you will ever enter if you don’t take self-defense measures.
You will enter an arena of false security as you learn to trade and accumulate some experience and successes. People drown in the ocean because of this. Based on a feeling, they swim without sufficient respect or awareness of the dangers posed by the ocean.
At this point, they end up drowning because they believe they are stronger than the ocean. The fact that the ocean intended no harm is the sad part. It was carrying out its routine. It was just going about its business as usual.
The market is emotionless, like the ocean. You can also financially drown if you don’t understand and respect the market. And the market won’t care at all if you drown! Why? It is unable to care and feel. As I pointed out, it is a natural phenomenon and does not feel anything.
Practicing self-protection at all times and in all situations must become ingrained in your mind. It ought to become as mindless as walking around obstacles. Never trade without considering the risk’s opposite side or the downside first. You should never trade without asking yourself,
“Can I afford to lose X amount of money if this trade does not work out?”
Always take care of yourself and don’t take a financial loss personally. The majority of traders are controlled by their emotions, and if you allow your negative emotions to get involved in your trading, it may become difficult for you to make any money.
Many people, for some reason, believe that the Forex market will experience a magical event that will “poof” them into wealth. They are not trading with the intention of comprehending the market and its reasons for movement.
In fact, they are mistakenly led to believe that there is nothing to comprehend. They might assert that the market simply operates in a mysterious manner and without rhyme or reason. Always take precautions to safeguard yourself!
#finance #business #cryptocurrency #currency #exchange #trading