Do you know what you do not know? This question may seem like a joke to you but it is not. This is what we meant to say as people do not know what is missing in their knowledge. One wise man once gave a beautiful answer when asked about smart people and wise people. He said, “Smart people know what they want, wise people know what they do not want”. If you think this saying is outdated in the modern world and everybody is running after the money by any means necessary, you are wrong. This saying was given by Jack Ma, the founder of Ali Baba. The main difference between a novice trader and the experienced trader is novice trader trade on guess whereas an experienced trader trade on knowledge and understanding. When you are thinking you have a chance of success, the professional trader has calculated his risks and placed his trades confidently because he knows he did not trade the market based on guessing. This article will tell you why it is necessary to know the lacking to improve your career.
Knowledge is power
Knowledge is the most important thing that you need to acquire as a currency trader. You might have access to high leverage trading account but this will not give you the safety in the retail trading industry. Those who start their career without knowing the risk factors of the market are the ultimate losers. Being a new investor you need to learn the three major types of market analysis. Based on these three factors, you have to develop a simple but effective trading system.
Some of you might think to buy an expensive trading system from the expert traders. But UK financial spread betting is one of the most sophisticated places for the investors. A small mistake can cause heavy loss. So, you need to take each step very carefully. No in this world can give you the guarantee a certain trade will work in the long run. For this very reason, you need to focus on trade management skill.
If you do not know what is wrong, how are you going to correct the mistake?
Every child starts his education in school. The teachers are their masters and they teach them what is wrong in their homework’s. It may seem little work but this mistake takes them a long way in their life. If they did not know what was wrong with their study, they could have continued this mistake until the end of their lives. They knew the mistakes, they improve their works and become better students. If you trade in Forex and you do not know what went wrong, it will be like looking for a needle in hay steak. The basic principle of developing yourself as a trader is to know your mistakes. This is why you need to spend time on the basic Forex courses. Learn the quotes, learn how to trade with different currency pairs, learn how to use patterns in charts and know the information about price using them and you will know what your mistakes are. If you cannot find what is wrong, you have got your broker to help you out. Many professional traders also offer free help to novice traders in basic courses. Read their blogs and you will gain valuable knowledge of Forex trading.
How do I know what I do not know?
This may seem like a mind-boggling puzzle to know what you do not know. You never know but your sixth sense hints you may be missing something. It may a simple strategy, a simple change in your position size or in your stop-losses. Only experience and wisdom can tell you what you do not know. Never think big of yourself and be humble. You will realize only the noble traders are rewarded while over smart traders get slaughtered.