Hi, I’ve been trading Forex for several years. And from my own trading experience I know for sure that Forex traders can be classified into three main categories. They are the systems trader, the risk trader and the beginner trader.
I’d like to start with risk traders. They believe in their capability of deriving high returns. They are used to taking high risks to reach their goals. They think that one can’t succeed without taking high risks. So they always go in and out of the currency markets with high frequency and take a great number of lots. They hope to earn a lot this way. It’s clear that by behaving this way they simply doom themselves to constant failures. To say the truth they earn decent money from time to time but anyway in most cases they mainly lose. It’s because the market always punish careless traders.
The systems traders believe that by simply following a certain set of rules they will succeed in trading. They often use automated trading systems allowing them to be hands-free in their trading. As usual these guys are highly intelligent. They are even able to program their automated trading systems. But unfortunately they have problems when it comes to analysis. They hope to create an ideal trading system. But it’s clear that it’s impossible.
Most Forex traders are just beginners. Of course they don’t know much about Forex trading. They don’t have enough skills in this field. Beginners normally don’t break rules and they are reluctant to change their current trading strategies. Sooner or later they become risk traders or systems ones. Besides this they can simply quit Forex. I hope you won’t do it.
Certainly you’re a beginner as many other guys. Don’t hurry up to open your first position. You’d better spend some time on learning the basics of Forex trading. The more practice you have the better results you’ll have in Forex trading.
Should you consider dealing with forex managed account, it is wise to find out some details on this market. If you are properly armed with the knowledge in your sphere you can avoid many risks related to this business. So studying forex managed accounts and only then applying it in Forex trading would be an intelligent step.