In recent times, there has been a trend to judge other investors based on their performance. In a simple context, novices begin to analyze others rather than themselves while trading in forex. As millions of people are becoming a part of this finance community, it is difficult to keep a tap on these clients but this habit is growing rapidly. Traders are looking for ingenious solutions like android application. People no longer want to spend days or even hours developing a strategy. They want to absorb knowledge and immediately start trading in the live market. Unfortunately, there is no such app that meets their dream requirements. As a result, it has been noticed that many emerging investors are observing the styles of others are trying to mimic their performance. The result is not always as expected and sometimes it led to complete misconception.
In this article, we are going to talk about this particular phenomenon and explore why this is a damage inflecting method. At a first glimpse, it may seem logical but as you begin to dig deeper, the truths gradually unearth.
It is good as I can observe styles and select the right one for me
No, this is completely a wrong concept. Don’t understand the market wrong. Currency trading has no universal formula, it depends on person to person. An investor may find solace in using short-term techniques such as scalping while others may deem it risky. Both are correct in their perspectives. When a person takes the role of spectator, two things occur simultaneously. Firstly, he slowly loses the ultimate essence of learning the basics. This is like observing a game without actually playing, in this case, capital is at stake.
Secondly, he gets the wrong ideas about trading principles. Human minds are developed uniquely and traders are the same. He gets the vibe that scalping is immensely profitable not knowing this is the most lethal strategy known in this sector. Perceptions are altered and false information is conveyed through channels. Simply doing this make one an incompetent trader who stands no chance against the others. Learn through mistakes and rectify the errors. Do what millions of people are doing, learning, and practicing in a demo account to prepare for live performance.
Underestimates real performers
A critical aspect of this habit is people often misinterpret successful traders. For example, an expert might be labeled as insane if they observe without developing basics. Elementary knowledge helps to distinguish the dangers from certain probabilities of profit. Trading mostly depends on opportunities that you will gradually understand as the career proceeds. If you start judging someone simply they have left their positions open for weeks yet no visible profit is accumulated in the account, the career will not go far.
The real performance focus on market dynamics for a certain time in the day. If ask them which asset you should buy, they will just have a look at the CFD trading platforms online and give you an answer. Many Singaporean traders have developed this skills since they know the proper way to manage the risk factors. They have worked hard in the early stage and only for this reason they can make consistent profit without having any faults. Change your perception on ETF business and try to focus on quality.
Learn elementary concepts
It is hard to change an inherent human nature, therefore we will focus on lessons that will reduce this problem. If this issue persists, read a resource daily and improve the basics. Participate in forex quizzes as they help to check whether the learned lessons have been set in mind. It is not uncommon to discover at a certain stage that investors they viewed as magnificent were using the worst strategies possible and novices in their eyes were the best consistent performers.