Top 7 mistakes made by people investing in Forex

First of all what is forex.
Forex is the foreign exchange market, in this market you're able to convert for example your Dollars into Euros and vice versa.
People are able to trade these currencies and predict certain movements (most movements are made due to economical shifts or news facts).


There are tons of different trading systems in this market.
It all depends on your own investment style.
Do you want to get in quick and leave with a small profit then your better of scalping.
Do you like the pairs with volatility then it's best to go for a grid.
For me personally I like a system that's able to adjust itself to the market conditions that lay in front of him.

Now some mistakes every manual trader has or will make:

1. Lack of experience.
2. Too much dependency on news/indicators/ etc.
3. Trading without a purpose like as addiction.
4. Open a trade with huge risk.
5. Lack of self confidence.  
6. Let your emotions stand in the way
7. Trying to make up your losses with bigger trades 

I've also made these mistakes, this is a interesting market, but it's also one that can turn against you quickly if you don't know what you're doing.

 

Some points to keep an eye on in order to find a good brokerage!

People often ask me what's a good broker, well to be honnest it depends on your own trading style.
If you are a scalper obviously you'll need to have a tight spread and fast order execution, if you're using a grid it's important that the broker allows you to use your strategy.

Here are a few points to keep in mind when you're searching for a good broker: 

1. Spreads - Many brokers claim to have low spreads where in fact they don't. Don't bother to open a demo account and check the spreads. Open a live account but don't deposit any money. Check the spreads in real time and by how much they open during economic figures, especially the Non-Farm Payrolls.

2. Margin requirements - Each broker may have different margin requirements for different instruments. Check this upfront with the broker.

3. Leverage - Check the leverage to make sure it meets your needs

4. Minimum distance - Check the minimum distance you can have form the market for stops, entry orders and take profits. Important!

5. Margin call - Will you receive an alert when you are in a margin call? (relevant if you leverage too much)

6. Margin stop out - By what % level will you get stopped out due to lack of margin? (relevant if you leverage too much)

7. Negative balance policy - We all know what happened to many brokers because of the SNB and EURCHF. Check the brokers policy if your balance is negative.

8. Withdrawals time frame  how long does it take to withdraw?

9. Withdrawal fees - How much do you need to pay if at all for withdrawals?

Update of results 29-06-2015

Again the software makes steady progress.
The account rose to 17.411 Euro that makes it an overall profit of 7411 Euro's in 4 months and a half.
If the software keeps on making these profits my money will be doubled in only 6 months time.

Now I'll have to make a decissions for myself either investing more money, withdrawing my initial deposit or keep on investing with this amount.

Most investments I've made turned out to be rollercoasters of emotions, if the price went up I felt happy, if the price went the other direction I felt bad.
That's why I decided to change my way of thinking and used software now.
Sometimes I still feel these emotions, but the profits keep on rising on a steady pace and I just have to trust the moneymanagers behind the software.

Don't work for money, let money work for you!

A main key to build a succesfull and wealthy life is making the right investment choices.
You can go two different routes with it.

1) build a portfolio and manage it on your own: this means you'll have to have enough free time to research stocks, build a trading strategy on the currency markets and stay actively seeking for trade opportunities.
or
2) Search for good moneymanagers who generate those types of results for you while you keep your focus on other things.

Both options have upsides and downsides:

The downside of doing it all on yourself is you'll have to become a professional trader/investor, because it's not easy to have a day job and searching the markets for good buying and selling opportunities.
The upside is you'll make your own decissions, and you are able to build experience etc.

The downside of using moneymanagers is you'll need to let them share in your profits, and basicly you lend out your car without knowing if the person who drives it has a drivers license..

The upside is if you've done your homework/ followed their trackrecord and they anwserd all your questions transparantly, you can use all of their trading experiences to make profits.

It's no secret I've chosen the second option, basiclly because in this way I'm making money even when I'm asleep.

Enjoy your weekend and remember:
Let the money do the work!

Results on 25-06-2015

In this summarry of my account (to enlarge you can click on the picture) you'll see the steady progress the software's making for me at the moment.
The profits stand on 7293 Euro this makes it +- 17% each month.
It seems the compounding effect is starting to do it's job, so this is an aditional bonus.
These profits have been made with only 298 trades (+-3 trades per day) at a succes rate of 65%.

The monitoring aspect is a crucial part of this investment, I can honestly say I feel rather save letting my money managed by the people of loop-strategy.

At the moment they are trading USD/CAD the ups and downs in this pair are well suited for this strategy it seems.
I've been following allot of other traders the past few months, but it seems they aren't able to make steady profits in a longer time frame.
Before I started I asked loop-strategy for their trackrecord of at least 2 years, and the profits shown there are almost identical to my profits now (between 15 and 20 % each month).

As long as the profits stay higher as the losses I'm a happy man!

Succes is a results of preparation and failure!

Allot of people envy succesfull people and try to copy their lifestyle and way of thinking.
however each and everyone of them has faced hurdles, that had to be overcome in order to stand where they are now.

You can't have a million dollar dream with a minimum wage work ethic, sometimes it's just simple if you aren't ready to put in some extra work like reading books, following succesfull traders, develop a own investment strategy then you'll most likely end up investing money but don't see high returns.


Of all the ingredients needed for success -- hard work, intelligence, creativity -- the most overlooked is luck.
Bill Gates went to one of the only high schools in the United States that had a computer. Warren Buffett was born in a capitalist country. Donald Trump had a wealthy father. All of these guys earned their success, but in slightly different circumstances outside of their control, things could have turned out far differently. To put it another way: People with just as much ambition and intelligence are broke nobodies only because they were born in a different time and place.

I'm happy I was at the right place in the right time and found this software, after losses in binary options and some stocks I could have decided to quit, but I wanted to change my portfolio and it turns out it was a great decission to not let my emotions talk!

Results on 23-06-2015

Hello,

Time for a new update regarding my investment using software from:
www.loop-strategy.com

The account rose to 17 147 Euro this is an increase of 71.47% since I started using their software 4 months and two week ago.

I'm glad I took the decission back in the day and am still excited to see the results every day!
In case you want to connect with me directly don't hesitate to comment on my blog or mail me directly
on the following adress: jesse.muller75@gmail.com

I'm always happy to meet likeminded people and hear their thoughts.

Cheers,
Jesse

Money can be a great tool, but it can also make you a monster!

How you use money is a reflection of who you are and what you value. Whether it’s “good” or “evil” is as much your own judgment on how you spend money as it is a judgment passed on you by others who observe how you use it.

Money can do strange things with people, I've seen friendships get destroyed due to a fight over money, I've seen people do stupid things for a bit of extra pocket change.
But on the other hand you're also able to generate beautifull things with money.
Donations to charity, buying a house where you've dreamed of your entire life, traveling to places that clears your mind and refocus yourself.

I've always used the profits of my investments to create somehting new and in return I've recieved more profits but also allot of experience in how to handle money.

Results on 19-06-2015

A new update on the growth of my account using software from
 www.loop-strategy.com

The account grew to 16 963 this makes it 69.63% Return on investment over a period of 9 weeks.
Feel free to follow my blog for new updates or ask the people of loop strategy for their own trackrecord (this convinced me to use their services).

Have a great weekend,
Jesse

Wide diversifying is only needed if you don't know where to invest.

Another quote of Warren Buffet.
I see allot of people over diversifying their portfolio.
For me it's simple I invest a big chunk of my portfolio into this software another chunck into some real estate and a smaller chunck into some other opportunities that pass by.

I decided to take this approach after the horrible stories I've read about bank managers, running of with peoples money.
Using it on high risk/high reward investment but only give a small % of the profits to the people who take the risks.
Also a truly safe investment doesn't exist, there is always a risk attached to every investment opportunity.
If you don't believe this you'll end up losing money.

It's all about your personal mindset, to become rich you'll have to act and investment like someone who's rich.
Either you hae certain skills you can aply and make you money or you use wise investment choices to build up a great portfolio..

Results on 17-06-2015

Hello!

Time for another update of my results using trading software.

Again the software achieved a steady rise to 16 823 Euro this makes 68.23% in a little bit over 4 months time.
And it was able to achieve this in 295 trades (3-5 trades a day) with a highe accuracy rate.
Till now I have to say it's the best 10.000 Euro investment I've made this far.

To get rich you'll have to earn money even when you sleep.

In order to make yourself a nice living you'll also need to earn money on moments when you don't work.
This is something allot of people forget.
You can work and work, but if you never have to time of to enjoy the little things in life you'll never get rich on different aspects of your life.

The software is making me money while I'm sleeping, it also allows me to do the things I like without financial pressure.

I regulary check the results of the software and that's it, I don't need to do annything else except relax, sit back and enjoy a nice adition to my paychecks.

Results on 15-06-2015

Hello and again welcome to my blog!
I hope the weekend brought you tons of wisdom and new investment ideas!
for me it was a relaxed weekend with a bbq, some bears and allot of relaxing.

Now an update on my Results:

If you want to take a closer look, you can always click on the image.
The software has done 294 trades in 4 months time so on average the software closes 74 positions each month with a 64%Win trades and 36% loss trades.
so this a healthy mix and as long we stay above the 50% line the profits will keep rising!

Results on 12-06-2015

Time for a new update to end the week!
I'm using this software now for 4 months in this period the results have gone up and down, I had good market conditions but also bad marketconditions.
But all in all the software realised a profit of 65.79% this makes it 16.44% each trading month.
not a bad return on investment at all.

Will keep you updated with the results.

And for now everybody enjoy your weekend!

Making Money through investments is a hobby not work!

This is the right mindset to have when you're building your portfolio.
I like working out and going to the gym, but I also like the rush I get when I view the results I'm getting through investing.
You always have to view it as something you like to do.
The minute I start to lose one second of sleep over my investments I'll stop with it and refocus myself back to my day job.

But for now it's going well and I don't need to complain about the profits it gives me.

Results on 10-06-2015

A new update on how the results are going.
The balance increased to 16 364 Euro.
This makes me 63.64% profit in 4 months time.

There aren't to many investment I've done that worked out so well in such a short time frame.

Update of results and quote

Hello Everybody,

I hope you enjoyed your weekend as much as I did!
Now time for a new update on my results:
The balance stays around 16.200 Euro's the people of the support team warned me it could happen that the balance stayed on a hold for as long as I wanted the floating to decrease (they also use parts of the profits to decrease the floating)..
That's why I decided to let the system run free again, so now let's see what kind of profits it'll bring me.

It's still something I have difficulties with to let go.
I've been investing in this software for a few months now, and sometimes I didn't knew what kind of decissions the software was making, but in the end the software managed to make great trades.
That's why I'm convinced that emotions don't belong on todays markets.
If you invest go for it don't let fear or greed overpower you in the situations they are least welcome.
Stay faithfull to your strategy, system or market.

Otherwise we'll get stuck in an emotional rollercoaster!