Never invest more than you can comfortably afford to lose!
I have to say that I personally totally disagree with that statement with regards to trading.
When I go to a casino, I play with money I can comfortably afford to lose because I am playing for fun.....not as a business. If I win, I may take my wife away for a weekend break. If I lose, so what, I just spent money on a good night out. I risk money I can afford to lose because I am doing it for entertainment, and recreation. Winning at the casino doesn't matter because I'm there for the fun factor. It's no different to "losing" money on a nice meal or several bottles of wine.
However trading is entirely different. It's a business and I don't start a business with the assumption that it can, will, is likely to, or could possibly fail.
I'm not trying to be confrontational with this, I'm just looking for other peoples thoughts on the matter.
Do you think that the wide spread attitude of only attempting this with small amounts and not really risking anything substantial, contributes to the high failure rate of new traders losing their account?
Imagine wanting to start any other business, and trying to do it without investing considerable capital and taking significant risk. With any other business you would sit down and carefully construct your business plan, you'd get full financial backing (either your life savings, a hefty bank loan or both), and you'd make sure every angle was covered and you were prepared. And then you would work 18 hours a day for the next 12 months or 2 years or however long it took to make your business a success. After all, you were risking everything you own and more on this venture, so there is no way you are going to let it fail. You certainly wouldn't do it for an hour or two in the evenings or when you can fit it in around other things part time.
But with forex, you start with $100 and "give it a go". That's not a business and there is no way that is going to succeed.
it's like wanting to start a McDonalds franchise, and when the franchisor says:
"no problem, we just need $300,000K from you to get started",
and you turn around and say:
"actually I was hoping to start with maybe $300 and see how it goes from there....perhaps I could sell micro burgers first and then build up if it works. I don't really want to risk anything on this".
The franchisor would simply turn around and say: F@*# off Mr Smith, your wasting my time and not taking this seriously!!
I personally think that if you truly want to make a success of your forex trading, you have to take it seriously (like any other business) and have something to risk/lose.
Obviously I have formed my opinion about this, but I would love to hear contrary opinions that may open my eyes to a perspective I hadn't thought about.
So my question is: Do you think people would have more chance of success if they took this more seriously and risked everything they have on this business, rather than only playing with money they can afford to lose?
Thanks
I have to say that I personally totally disagree with that statement with regards to trading.
When I go to a casino, I play with money I can comfortably afford to lose because I am playing for fun.....not as a business. If I win, I may take my wife away for a weekend break. If I lose, so what, I just spent money on a good night out. I risk money I can afford to lose because I am doing it for entertainment, and recreation. Winning at the casino doesn't matter because I'm there for the fun factor. It's no different to "losing" money on a nice meal or several bottles of wine.
However trading is entirely different. It's a business and I don't start a business with the assumption that it can, will, is likely to, or could possibly fail.
I'm not trying to be confrontational with this, I'm just looking for other peoples thoughts on the matter.
Do you think that the wide spread attitude of only attempting this with small amounts and not really risking anything substantial, contributes to the high failure rate of new traders losing their account?
Imagine wanting to start any other business, and trying to do it without investing considerable capital and taking significant risk. With any other business you would sit down and carefully construct your business plan, you'd get full financial backing (either your life savings, a hefty bank loan or both), and you'd make sure every angle was covered and you were prepared. And then you would work 18 hours a day for the next 12 months or 2 years or however long it took to make your business a success. After all, you were risking everything you own and more on this venture, so there is no way you are going to let it fail. You certainly wouldn't do it for an hour or two in the evenings or when you can fit it in around other things part time.
But with forex, you start with $100 and "give it a go". That's not a business and there is no way that is going to succeed.
it's like wanting to start a McDonalds franchise, and when the franchisor says:
"no problem, we just need $300,000K from you to get started",
and you turn around and say:
"actually I was hoping to start with maybe $300 and see how it goes from there....perhaps I could sell micro burgers first and then build up if it works. I don't really want to risk anything on this".
The franchisor would simply turn around and say: F@*# off Mr Smith, your wasting my time and not taking this seriously!!
I personally think that if you truly want to make a success of your forex trading, you have to take it seriously (like any other business) and have something to risk/lose.
Obviously I have formed my opinion about this, but I would love to hear contrary opinions that may open my eyes to a perspective I hadn't thought about.
So my question is: Do you think people would have more chance of success if they took this more seriously and risked everything they have on this business, rather than only playing with money they can afford to lose?
Thanks