November 14, 2017 at 9:53 am #952
If you are adding in Forex, you may have seen that the number of traders who are losing in Forex is high. If you are a trader in Forex and see that 95% of traders are losing in your market, you should be thinking if you are in the right market for your money. This is normal in Forex and most of these traders lose for their own mistakes. Traders have many colorful dreams before they come to invest in Forex. When they learn that all of the traders are losing money, they begin to think they are in the same boat. This article will break your idea and you can see that traders can make the profit in Forex even if they have do not any education of the investment market. We are not going to talk about the famous Turtle Experiment, but we are going to tell you why most traders lose. Most of these reasons are very silly but when you are trading in a market where there is a countless number of people, the slightest of your mistake can cost your money.
Losing is just a part of the trader’s life and there is nothing we can do about it. Even the professional Aussie traders have to lose money. In other words, when you start your trading career you need to deal with the probability factors. You can do all the technical analysis but there is no assurance that you will have a winning trade in this market. Life of the professional trader is all about managing risk. If you risk too much in any single trade then this industry is not going to make you rich. You need to find your risk tolerance level so that you don’t face any emotional break down after facing a series of losing trades.
The greed for money
These traders are like greedy people when they trade in Forex. They do not know that they have to wait for the market to make the profit. They trade the market and when the price level is below their profit, they close the trade. All the trades in Forex come to profit and you have to open your trades for the money. If you are greedy and want to make the profit when you are trading, you are not going to make money from Forex.
Wait for the best trade setup
Overtrading is one of the key reason for losing money in the Forex market. As a currency trader, you need to develop strong patience so that you can wait for the right trading signal in your trading platform. At times you will have to wait more than weeks only for a single trade setup but remember that it’s better to stay on the sideline rather than losing money on poor trade execution. When you do the market analysis use the higher time frame data since it is one of the best ways to avoid the false trading signals. Learn about the Japanese candlestick pattern so that you can find a precise entry point in your trade execution.
Many of these traders overtrade in Forex. They think of this market a bucket full of money and place as many trades as they can. They place trades and closes their trades. It is normal to make the profit if you are placing trades every hour. They think they are making the profit but when they close their trading, they saw that their loss is more than their profit. Overtrading cost them money. Quality is dearer than quantity.
Emotion, emotion, and emotion
If you are crying when you lose, if you are feeling to die when you lose, if you are struck by pain when you lose, Forex is not for you. Trade with strategies and analyses and you can have your money. Emotional traders can never make money in Forex.
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