How to lose money
Are you looking to get rich quick? Do you want to trade successfully without having to put in any hard work? Found a broker offering deals that seem too good to be true?
If so, this Lose Money Fast: A guide for irresponsible traders is essential reading for you...
1. Don’t worry about a strategy
Some say the best adventures are the ones when you have no idea about what you’re doing or where you’re going. Why not apply that to Forex trading?
Sure, it’s your hard-earned money you’re putting on the line and most people would want to have some idea about what they want to get out of trading, but not you. You don’t need a strategy. You’re a risk-taker - a Forex adventurer on the road to nowhere.
2. Trade big!
Looking to lose your money fast? Try trading big.
Although spreading your capital across several positions and gradually growing your account is generally accepted to be a sensible and viable strategy for long-term success, it just doesn’t have the same thrill as piling all your funds into one big speculative trade.
3. Trade on your emotions
You’ve had a few good trades in a row and your account balance is looking pretty healthy. Confidence is high. You feel invincible! Why stop when you’re on a roll?
Who wants to listen to that pesky, sensible little voice that’s telling you to pause, take a half-step back and think about how each trade affects your overall strategy and capital? Your good run will surely last forever. And even if it doesn’t, you can always trade a bigger amount next time to compensate (refer section 2, above).
4. Don’t worry about research
Why would you want to bother with research and educating yourself about trading when you can just guess? If a bit of luck goes your way, you might even be right half the time…
5. Don’t worry about the fine print
All those little words on the Terms & Conditions just take so much time to read. If a broker has a nice website and some decent software, they’re bound to be responsible with your money. Sure, you might find a broker that won’t release your funds when you ask for it. And sure, some brokers are based on offshore tax havens and don’t have approval from a financial regulator like ASIC.
But that’s not worth taking time to read about, right?