FOREX 101 Equals Stock Trading 101

I came across a blog post that talked about foreign currency trading basics. The following is a quote from the post that I found extremely helpful.

“Abandon all notions of getting rich quick. Because of leverage and due to the fact that even a broken clock is correct twice a day, the FOREX market can give you the illusion of being able to make a huge amount of money quickly. The market can randomly reward you for bad trading behavior. Until you execute your bad trading habit one too many times and the account proceeds to blow up. Capital preservation is critical simply because you need enough time to be able to discover those “bad trading habits.” Go slow. Preserve your capital. Learn the fundamentals. Achieve consistency.”

I found that if I replace the word “FOREX” with “STOCK” then it perfectly describes what I have learned from my past couple months of stock trading experience. It is a very concise summary of my “Stock Trading Lesson Learned” Category”. I couldn’t agree with this more. I guess FOREX trading 101 equals to stock trading 101.