One very common problem in forex trading is that of greed and, while none of like to think of ourselves as being greedy, it is surprising how often our trading is unconsciously based on greed. This is perhaps best seen when a trader finds himself on a ‘winning streak’ and is consistently earning say $1,000 a day. If he can earn $1,000 a day then why not $1,500 or $2,000 a day and his trading is then driven simply by a higher earning goal, rather than any fundamental trading rules. The result is often that, instead of increasing his earning, they start to fall and $1,000 a day soon becomes $500 a day. One way to avoid this situation is to test yourself without risk at an early stage in your trading career and when you have the benefit of operating a forex demo account. A few paper losses at this stage in the game will often do wonders to keep you on track later on.