Page 136 - Ultimate Guide to Currency Trading

required for winning big in currency trading. In fact, you can learn some of the trading systems
described here with a very low account balance. For example, you can enjoy and experience the
emotion of setting up a successful hedged directional FX trade with as little as $30 in your account.
Some Forex brokerage firms such as OANDA allow low balances and odd lot sizes that allow you to
develop your skills without risking huge amounts of your hard-earned capital.

The money you would be putting in these accounts would still be at a much greater risk than
the money that would be invested and traded in the more conservative style that is also described in
this book. This money would be working very hard, and you would still be trading it in a hard, quick
fashion that would allow it to gain as much percentage wise as it would with a much larger account.
You can trade a $30 dollar balance with the same principles and ideas as the ones presented in the
high risk/high reward chapters, and still get great results.

You can experiment with double-trading volatile currency pairs, trading risk sentiment, and
trading exotic currencies. The secret to doing this is to watch the percentage gain of your trades. If you
transfer in $20 from your VISA debit card to your Forex currency account and you spend the early
evening getting out the calculator and placing some well-thought out trades, then you will learn very
fast the skills and technique it takes to make it trading currencies in an aggressive way. By the time
you switch on your computer in the morning, and your trades have worked all night long, you might
be up seventy-five cents. This seventy-five cents might seem small to some, but it is actually a gain of
3.75 percent overnight, which if done every night for the next year equates to over 900.00 percent
returns, not including compounding!

As you can see, you can build up the skills and experience required for trading Forex
aggressively by first learning how to trade very, very small sums. If you would like to try your hand at
learning how to earn big gains in the currency market, then this might be a good starting point for you.
Remember, if you try to learn with smaller amounts, look at your percentage gains, and do not get too
caught up in the actual money that you are earning. The big money will come later, after you have
earned your stripes with aggressive FX trading.

The Pitfalls of Too Much Confidence

There is something that happens to everyone who gains early successes at any endeavor. Whether
you are beginning a sport for the first time, are starting your own business, or learning how to trade,
you will suffer from hubris. Hubris just a fancy word for what is also called the winner's curse. It might
happen to you when things have gone good for a while and you've earned a few dollars in the
currency market. It could happen to you after a few months of being very successful at paper trading
in your demo account. It could happen after you correctly predict the direction of an interest rate hike
by one of the major central banks. Either way, it could happen to any trader at a time when she is the
most confident and at the top of her game.

It usually starts by taking more and more risk and ending up with better and better results.
Pretty soon, you might think that you know that your trades are all good. It is at this point that you