Page 118 - Ultimate Guide to Currency Trading

As you can imagine, trading a $50,000 account at a brokerage firm is much different from
trading nearly $4,000,000 a day in a fast-moving currency account. Since this is the case, nerves of
steel are a basic requirement of a FX trading system that is all-out, high risk/high return. If you can
master your emotions and nerves, and you have the knowledge on how to look for setups and then
scalp and trade, your Forex account can get very profitable, very fast.

More Stress

Scalping and trading a third of your currency account, day in and day out, can lead to some very
stressful situations. If you aren't showing a profit for a few days or if you have a trade that goes bad
for a time, and you are stuck with a loss—these are the situations that can creep up on you and make
you wonder if you should continue trading in an aggressive manner, or if you should just take your
money out of the FX market altogether and put it into a money market account. If this happens to you,
don't worry! If-you need to cool off from currency trading, go ahead and walk away for a time. You
might need the rest of the week off, or you might need a whole season off. If you have the feeling that
you don't have the knack for it, what you most likely need is a break. Forex trading full on is hard to do,
and it takes its toll on you mentally and physically. The tension can begin to build up in your shoulders
and neck. Pretty soon your knees ache because you have been sitting tense at your computer desk for
days on end. You might get easily frustrated at your loved ones when they ask the smallest thing from
you. It might be your turn to make dinner, and you find yourself resenting the time it takes to cook, let
alone the time it takes to eat with your family.

Because high risk/high reward trading can bring so much pressure, many
professional currency traders are avid athletes. Whether they swim, jog, or kickbox,
ALERT professional currency traders find ways to exercise away the muscle tension and stress
that day in, day out FX trading brings with it, good days and bad!

These are the warning signs that you are overtrading your account. You will know something is
wrong: Forex trading used to be fun. What happened? If you are showing these signs, or your family
and friends are giving you signals that you are acting differently, then you have to shut down your
account for a while.

Forex trading can be very profitable, and therefore very fun. If it begins to be not fun for any
reason, for any length of time, it is causing you too much stress. If you are under too much stress then
you are running the risk of making a mistake with a trade. You might be so stressed out with your
trading that you secretly want to lose big so you are forced to close out your account and stop trading.
This reasoning is more common than you think. This is why so many people seem to fail at currency
trading when, in fact, it is not that hard to make a profit at all.

You might be expecting too much profit. More likely you are not used to managing a large
margin account. It might seem an easy thing to do to place a trade for $25,000, $50,000, or even