March 21, 2008
Forex Forums - The Pros And Cons
If you're a regular forex trader you've probably spent a lot of time visiting various forex forums. That's understandable because trading can be quite a lonely profession, but although they can be beneficial, they can also have an adverse affect on your profits.
Let's start first of all by discussing the benefits of visiting forex forums.
Firstly, if you are an inexperienced forex trader and are looking for profitable trading ideas and systems then they can be every useful. You can often pick the minds of experienced traders and understand what types of indicators they use and how they make their profits.
Another benefit, as I've already mentioned is that you can alleviate some of the daily boredom and loneliness that comes from being a forex trader working from home. Lack of social interaction is one of the major drawbacks to working from home so forex forums are great for chatting to other like-minded people, even if it is over the internet.
The downsides to forex forums may not seem obvious at first but once you become a regular forum visitor you will soon start to find out why they can have a negative affect on your success as a trader.
This is because you will often find that there are certain traders who love broadcasting their positions to the rest of the forum, and seem to relish the attention.
Basically it's an ego trip, and even more so if they're relatively successful. They start to build up a following and other readers will start to copy their trading positions.
This is a trap you really don't want to fall into yourself. No successful forex trader ever made their fortune by copying other traders' positions. Pick up ideas from successful traders by all means but please don't blindly follow other traders, particularly members of a forum. After all do you think the real professionals spend their days on forums? Of course not, they're too busy making money.
If you make your own decisions then at least you know that you only have yourself to blame if you lose money.
On a similar vain, you don't want to become one of these 'forum gods' either if you achieve any level of success yourself. This is because by bragging about how good a trader you are, you're putting additional pressure on yourself, knowing that many other readers are scrutinizing, and worse still, copying your positions.
This can affect your trading because you may alter your stop loss and limit levels in order to try and guarantee a strong winning position is ultimately achieved, or you may hold out longer than normal if a position goes against you.
Either way there is no real benefit to broadcasting your positions on forums other than massaging your ego if a position goes to plan.
So to sum up, forex forums can be a great learning resource and can eliminate some of the boredom of daily forex trading, but be careful about finding yourself following other forum members positions or broadcasting your own positions as this will inevitably have a negative impact on your own trading.
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