Only about 5% of Forex traders ultimately consistently lucrative as a result of its trading activities, why? Even if there is no direct answer to this eternal question, I mention some of the most common reasons, the traders lead up to the failure.
I remember that when I first started trading in the Forex always thought that the money exhausted simply at their own cost, and no matter what I tried, simply to be able to stop the leak. After a year of studying diligently, read numerous books, attend endless seminars, exchange of experience with like-minded people, and what not, I started a thread to see that I think, the cause. In this article I will look at these questions that all newbies have to face.
1. Unrealistic Expectations
I hear all too often from beginners, waiting to make $10,000 per month, starting with 1000 dollars in your Trading account, and this despite the fact that you have virtually no experience in the trade.
To be honest, the only good thing about this statement is that a detailed and written goal; however, it is completely torn off from reality and impractical. With clear goals are necessary, but the goal must be achievable and believable, the trader is worthy of. The goals are based on research and knowledge of what is possible and what is Real.
Anyone can make huge profits for some time, the complexity of the serial, and maintaining a low level of risk, takes a certain level of knowledge and experience.
Before you start to slow down trading and to think, what are your goals? Realistic are you?
2. No Forex Trading Method
All successful Forex Trader in a clear and Forex Trading System which essentially define a set of rules and instructions that help the traders to when to enter the market, where to go and how to manage the trade.
Trading without a clear Trading method leads you to guess, and the assumption of random decisions under the influence of emotions. Trading without a well-designed trading system will always lead to huge losses.
Take the time to determine your method of Trading. I think that it again and put it in written Form. To be done a certain address, and all questions which may arise during trading.
3. Bad Discipline
I hope, now you have realistic goals, specific objectives and a feasible Plan to get there. To follow the next step to the Plan without hesitation.
This does not mean unnecessary risks just because you want some Action! You need to decide why you are trading, when it comes to entertainment, as one thing; but if it is your business, as you him as such. There is a discipline.
A good way I’ve found to develop the discipline, is a back-Testing of selected trading system. On the back with the test and prove whether it is beneficial or not, you lose all of your doubts. If your doubts are gone, and you are absolutely sure that your Trading System works, as it will be easier to follow him.
4. Without Patience
Forex trading is not an exciting Business, contrary to popular belief. If you lose them to Action, than you might as well go in Las Vegas your money, but a blast while you are there.
Forex trading is an edge in a certain way to win more than you lose. Once you define this boundary clearly, and its, also known as the method of trading on the Forex market as your task is to have the discipline to wait patiently for the right equipment, to fulfill his Plan.
The reality is that Forex trading is usually quite monotonous. My Mentor once told me, that, if the trade is exciting, as I should be doing something wrong, I really believe that.
5. No Money-Management Strategy
Another very serious obstacle on your way to a successful Forex Trader, the adoption of and compliance with the strict rules of Money management. It is important, and it is a part of your Trading should be plan -; this may be the difference between success and failure.
Personally, I do not limit the risk per Trade more than 3% from the balance of my account. Thus, no trade can never destroy me. In my opinion anything over 5% is too much, and ultimately lead to a disaster. Be patient, do not try with a single transaction rich. Forex is not a get rich Quick scheme. A profitable occupation, the pay handsomely for a longer period of time.
In The Summary
In Forex trading successfully is quite logical and understandable. Although it was probably only the success, hard work, healthy people, and a lot of discipline is necessary. I can assure you that it is worth the effort. Overview of the five reasons for refusal, I indicated, and try each of them; you will see the rewards in no time at all.