In almost every field there will be competition where we have to try to win something against other people or other factors. Included in forex trading activities which is one of the most risky trades in the world. This is because when trading we will be dealing with many enemies because forex has a system where one party’s loss will be a gain for the other party. So we must know who is the main enemy for traders so that we can measure our ability to deal with this enemy. That way traders will become masters of the battlefield and can focus on executing trading plans in order to get maximum profits.
The main enemy of traders is greed, which is common, especially for novice traders who are just starting out in a trading business. They will try to maximize all opportunities to make a profit. The goal is only one, namely to get as much profit as possible and as fast as possible. The desire to get rich from forex trading is so passionate that it influences trading styles, strategies used, use of risk to discipline which is often forgotten. Greed is indeed human’s enemy so it still follows, including when we are trading forex.
This greedy nature makes it difficult for traders to think rationally because from the start his mind was closed and there were only profits. Greed is the source of all problems in forex trading because it will lead to fomo, greed, high risk, martingale and other dangerous trading behavior. Therefore, we already know that the main enemy of traders is greed, so the next step is how to prevent this enemy from appearing and affecting forex trading activities. From personal experience while being a forex trader, greed often comes to mind by opening large lots in order to make a profit
Many traders think that their enemies are brokers
This opinion is based on the assumption that transactions made by traders are taken by brokers, in other words, brokers become opponents of trader transactions. So when the trader for the broker loses, and vice versa when the broker loses the broker profits. Because there are conflicting situations, each party tries to win. Traders win by analyzing the market well so that they can make the right trading decisions, on the other hand brokers often act fraudulently to increase the chance for traders to lose which means profits for the broker.
But the opinion above only applies to bookie brokers, it also doesn’t apply absolutely. At bookie brokers, indeed, they make profits when traders lose, but they are also very interested in the existence of traders who trade at the broker. If the trader feels disadvantaged, who else wants to trade at the broker. Apart from that, brokers are also under the supervision of regulators so that they cannot act arbitrarily, but this supervision from regulators does not seem to apply to brokers from offshore countries.
For ECN brokers who throw their traders’ trades on the forex market, the broker is not the enemy of the trader. Rather, the two parties partnered with each other. Brokers earn income from facilitating trader transactions, because they get spreads and commissions for each trader’s transaction. On the other hand traders need a broker so that transactions can get transaction partners in the forex market.
Usually, if we run a business, there will be competition between businesses between the same business owners around us. Even if we work for a company or other person who owns a business, we will find competition between job applicants. And usually the competition includes how our expertise is qualified or not. If it is felt by the company or business owner that it does not meet the requirements, then the work will not be ours but will belong to someone else.
However, it is different if we become traders, because as far as I know, traders will not provide competition at all. Precisely more often work together in order to get the same profit. Usually, traders who have been in the world of forex for a long time will never be stingy in teaching novice traders and guiding them to become independent traders, although not all traders are like that because some traders provide fees as their consulting services. But so far, more retail traders have created their community so they can get mutual profits from their trading results. Not infrequently they do live trading or provide entry signals so that other traders can also feel the profits from their trading
So it can be concluded that the enemies of traders are not other traders, so who? If we talk about big traders who have a role in moving the market such as banks or other big companies, then maybe they are our enemies. However, when viewed from a different perspective, in fact they are also not exactly enemies. Because they also jump into the world of forex to make a profit, it’s just that the capital they use is so large that it can move the market quite significantly when compared to retail traders. But once again, they are not our enemies because they do not cause us direct losses because even without them, we cannot predict where the market will move.
The main enemy of the forex trader is himself
Most forex traders cannot contain the greed that is in them. So that when these traders get enough results that day, they still force to enter again because they feel lucky that their analysis is always correct. So they force the moment and violate the trading rules that they make themselves. Even though this can make the profits we obtained before disappear again because of the original entry.
Not to mention, a trader must be able to keep our minds clear during analysis. Because if our minds are frantic, then our psychology will be increasingly uneasy and eventually we will feel anxious about the open positions we take. This will actually spur us to always be vigilant, and in the end it will have an unfavorable impact on the health of our bodies. So if we can’t beat ourselves, then we will be devoured by greed which will actually boomerang for us in carrying out trading activities.
yes, we can’t beat our self when trade