Knowing when to bail out “red flags!”
Getting to know your broker, it is also the key period where you should be looking out for the red flags that will later catch you with your pants down and infuriate the hell out of you. Traders have a nasty habit of looking through rose-colored glasses or have been drinking the brokers Kool-Aid too long when they start to witness various red flags which they fail to acknowledge and act upon. If we want to have a successful FOREX career and minimize some of the pain we suffer in pursuit of it, we must learn to be more aware and pay attention to the red flags that ALWAYS get raised in the beginning.
I say always because even though we all make a massive effort to analyze what they are doing, they can’t help but slip into their natural state within the first month. We can’t control hidden situations or anomalies, which means we get put to the test and inadvertently they reveal their true selves.
What is a red flag?
This is something that the brokerage does which flags a potential problem either then or further down the line. Often ‘red flags’ are a brokerage trait, for example anomalies, and at other times it’s a fundamental core difference in pricing or something that is extremely important to you, that you really shouldn’t ignore. Red flags can and often will deal a fatal blow to your live trading account. Ignoring these gives the brokerage your accounts lifetime to expand upon these red flags and steal your money that may cause you long lasting repercussions.
The key with a red flag is that whatever it is, it’s something that alerts you to other potential issues or that normally you would be wary or not accepting of. They are normally things that you don’t want to compromise on.
We ignore red flags because:
- We’ve already had some good trades with them and are already in the justifying zone, that place we go to where we keep finding reasons to stay with the brokerage.
- We just signed up so we want to make it work more than we want to withdraw our account and go find the right brokerage.
- We’re insecure.
- We’re blinded by greed and desire.
- We have... I can avoid what happened to other traders using them syndrome.
In your mind as part of the natural process of life and certainly because you want to have a decent broker to have a relationship with, there should be certain predefined things that you know that you will not accept, regardless of how fabulous a prior trade was, or that will cause you to pause things and question the problem to clear up the red flag. Our inability to ask the right questions or even ask any questions at all is the very thing that is coming back to bite us further down the road when the brokerage is causing anomalies, strange pricing behaviors and then your account (money) is gone, we feel bewildered and or dumbfounded.
JD
Just walk away and live to trade with another.
Getting to know your broker, it is also the key period where you should be looking out for the red flags that will later catch you with your pants down and infuriate the hell out of you. Traders have a nasty habit of looking through rose-colored glasses or have been drinking the brokers Kool-Aid too long when they start to witness various red flags which they fail to acknowledge and act upon. If we want to have a successful FOREX career and minimize some of the pain we suffer in pursuit of it, we must learn to be more aware and pay attention to the red flags that ALWAYS get raised in the beginning.
I say always because even though we all make a massive effort to analyze what they are doing, they can’t help but slip into their natural state within the first month. We can’t control hidden situations or anomalies, which means we get put to the test and inadvertently they reveal their true selves.
What is a red flag?
This is something that the brokerage does which flags a potential problem either then or further down the line. Often ‘red flags’ are a brokerage trait, for example anomalies, and at other times it’s a fundamental core difference in pricing or something that is extremely important to you, that you really shouldn’t ignore. Red flags can and often will deal a fatal blow to your live trading account. Ignoring these gives the brokerage your accounts lifetime to expand upon these red flags and steal your money that may cause you long lasting repercussions.
The key with a red flag is that whatever it is, it’s something that alerts you to other potential issues or that normally you would be wary or not accepting of. They are normally things that you don’t want to compromise on.
We ignore red flags because:
- We’ve already had some good trades with them and are already in the justifying zone, that place we go to where we keep finding reasons to stay with the brokerage.
- We just signed up so we want to make it work more than we want to withdraw our account and go find the right brokerage.
- We’re insecure.
- We’re blinded by greed and desire.
- We have... I can avoid what happened to other traders using them syndrome.
In your mind as part of the natural process of life and certainly because you want to have a decent broker to have a relationship with, there should be certain predefined things that you know that you will not accept, regardless of how fabulous a prior trade was, or that will cause you to pause things and question the problem to clear up the red flag. Our inability to ask the right questions or even ask any questions at all is the very thing that is coming back to bite us further down the road when the brokerage is causing anomalies, strange pricing behaviors and then your account (money) is gone, we feel bewildered and or dumbfounded.
JD
Just walk away and live to trade with another.
It's Easy To Get In;.. It's Hard To Get Out 
