Wish I saw this post last 2 years; I would have spared more accounts from blowing up. The most painful part of this tale was after successful growing of an account from $50 to $450 in 3 week, I ended up blowing it again in just one day.
COMMON FACT: It is estimated that 96% of trader loss their money and end up quitting and everyday more traders are coming into the industry only to still be part of this 96% to help you make your way into the 4% of winners.
Here are the top reasons why forex traders’ loss money:
1. ACCEPT YOUR FAITH: As a trader sometime you have to admit you are wrong and pick your mistake than trying to beat the market and end up with zero account.
As we know as human it’s pretty difficult to accept you wrong but in forex to avoid the zero account just be non-human and accept that then move to the next opportunity. Its either you enter due to wrong signal or the market just doesn’t want to listen to your tune of music this time.
2. No plan: Have you every placed a trade and closed the trade to trade the other way only to find out that the former was the direction.
Here you just have to pick a plan and stick to it because the more you loss the more you lose confidence.
3. Risk management: This is the key to being alive in forex. You can have a good strategy but can lose all due to lack of risk management.
Just as the number one rule of a business man is to make customer so is the number rule as a forex trader is not to make profit but to protect your capital because as your capital reduces so does your confidences
To counter this you must implement good risk management, place stop loss order and move them only when you are in profit and use lot size that your account can hold and if the trade isn’t good for you get out, the broker can't get your money when you don’t trade.
4. Befriending the Market: The market is not something you beat, you just have to follow it. At the same time, the market is something that can shake you out if you are trying to get too much from it with too little capital.
Having the "beating the market" mind-set often causes traders to trade too aggressively or go against trends, which is a sure recipe for disaster.
5. GREED: Every day the market gives us so much opportunity to make money out of it. Trying to ensure that you take every pip out of the market isn’t a good idea after all. Most traders would be in profit and all of a sudden the market has turned around to suck all the profit back.
My advice is to avoid greed cause there are so many opportunity and if missed the next is right around the corner.
Did i omit any please help me address
it using the comment section...
till next time trade save.
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