Pоpulаr quеstiоn: Whаt аrе sоmе drаwbасks оf bеing а trаdеr? Yоu will think аbоut thе mаrkеts аnd yоur trаding p&l аll thе timе. Аt timеs whеn yоu hаvе а lаrgе risk pоsitiоn оn, yоu will bе оn yоur smаrtphоnе аt 3аm sееing hоw еurоpеаn аnd аsiаn mаrkеts аrе dоing аnd thinking аbоut hоw it will аffесt yоur pоsitiоn. Yоur frее timе will bесоmе vеry sсаrсе. Mоst bоnd trаdеrs аrе оn thе dеsk аt 6:30аm. Mоst lеаvе by 6pm. Thеn yоu hаvе сliеnt dinnеrs prоbаbly 3x а wееk. Sоmеtimеs this mеаns fly tо Bоstоn fоr а dinnеr, wаkе up саll 4:45аm fоr а 6аm flight bасk (yоu аrе аlwаys оn thе first flight bасk), strаight tо wоrk. Rinsе, rеpеаt. Yоu spеnd thе wееkеnds rесupеrаting. Yоu аrе а соg in thе whееl оf аn industry thаt privаtizеs thе gаins аnd sосiаlizеs thе lоssеs (thrоugh bаilоuts). Thеrе is trеmеndоus mоrаl hаzаrd. Mаny trаdеrs dееp dоwn undеrstаnd this. Еvеntuаlly thе strеss tаkеs а tоll оn yоur hеаlth. thе сliеnt dinnеrs, thе lоng hоurs аnd thе strеss
I think that the moral hazard is definitely something that people tend to forget about or not really consider when they think of being a trader, but it certainly weighs on the minds of the trader. I also would say that the time devotion is something that a lot of people may not be prepared for, and I know some of my friends work about 80 plus hours a week and that is just crazy to me.
My dad's old boss used to be a trader before he owned the franchise he's supporting himself quite well with. I will never forget him saying he has literally left the country for weeks and made $50,000, and he did it while on vacation. That was the dream of the market for him, he knew it was possible, but in his words, "it whittles away at you, trying to make you something"
With time, a stock trades gets used to the schedule. What keeps him or her going is the adrenaline rush and sense of purpose. A popular saying states that when you remove your eyes off the prize, the journey becomes harder. The trade has its drawbacks because of the unpredictable nature of the market which is a less than ideal situation for an investor. Stock traders are by necessity workaholics.
Stokcs market is different with forex market, one advantge forex market open twenty four five day a week,, different with stocks market which open only on working hours, and as trader forex can trade anytime anywhere, and about stress, maybe as trader will faced with stress in addition if they often suffering with loss in trading
I agree that you will have no more spare time as a new trader since your mind will be preoccupied by your profession. And I also believe that when the deals are going great then your excitement would rob you of sleep. However, I also believe that as you go on with your work, you will get used to it in due time such that it will be just like any other job where you work now and you rest later. In other words, the preoccupation lasts until you get to the next step after being a beginner in the trading.
As trader that already having high discipline in daily life, actualy they also can implemented in trading, which in trading as trader tehy will running system and strategy will full discipline if in daily life they have good habit to keep discipline. If we can manage our time, for daily activity and for trading hence we can making business run smoothly
I would say the biggest drawback is the risk involved. You can have all the strategies, know everything about reading a graph and have your whole week planned out...and it can all go to pot because the market decides to. You aren't self employed as a trader, you're a slave to the market and there are many, many risks involved. But with risk comes great reward. It's how you mitigate the risk that keeps it from being a drawback.
Yes risk always involved in forex as trader also I think all of them already understand with the risk appetite that may occur in trading, and as consideration about risk usually they will trade with use risk management like as put stop loss or using trailing stop or hedging strategy.
In the forex market, a lot of traders lost their money because of fake or bad brokers. Brokers play an important role in trading. Making profit or having loss is mainly depends on the broker. while choosing a broker, a trader should research properly about the broker. I always trade with TP Global FX. Because they give me proper guideline at the time of trading. They also help me to do comfortable trade. So, for me they are perfect broker for me.
