January 28, 2020 at 12:14 pm #164828
We all must have heard that almost 95% of traders fail to make money. Now you must have the question of why they fail to trade, so today we will try to understand why they fail. And try to become the rest 5% who make money by trading. Before you start getting into the deep, never think trading is an easy task. You have to work hard to get yourself synchronized with the complex market.
Most of the people want to do trading is because they want to be their boss and want to become a successful trader. But in the rush of becoming a successful trader, they don’t focus on the processes and strategies and thus they fail to make money. In this article, you will find the reasons why they fail to make money.
Not doing a demo trading
Demo trading is very important for beginners who want to learn currency trading. Well, no one wants to lose money unnecessarily that’s why before you trade with real money and lose all your money just trade with a demo account first and learn the trading.
A demo account helps to learn all the mechanics and skills of trading without any risk. And one should not trade with real money before trading with a demo account. To be honest, without using a demo account, you can’t expect to learn the tricks of this market.
Don’t focus on money
Instead of focusing on how to achieve success in trading, traders pay attention to how they can make money fast. The main point is that you can’t just think about money without knowing about the skills in the trade. A successful trader always focuses on the journey of trading and they don’t think about the money.
You must learn to control your greed to become a successful Forex trader. Start learning Forex without having the greed to become a millionaire. Focus on the market dynamics so that you can execute quality trade without having any issues. During the strategy development process, limit the risk exposure by using risk management policy. And forget the fact, you can make profit within the first six months.
The account-killer in trading is mostly the problem over-trading. New traders in Hong Kong trade so often that they end up losing their accounts with zero money. Don’t check your daily chart all the time; give your trading process a bit of time. Learn practicing trading slowly and wisely. You can’t earn more money by placing more trades. If you execute quality trades, a few good trade is enough to secure decent profit at the end of the day.
Before trading always calculate whether in the coming result you will win or lose. Focus on the busiest hour of the week when most of the trading happens, try to trade that time according to the price chart.
Know about the price action
If you don’t know about the price action strategy, you are not going to make any money. A trader should know about the false breaks in trading and more importantly, they need to know how to read the story on the chart. A trader should know every tool that is present in the chart. Don’t lose hope if you don’t know anything about the chart or the price action, just learn about the process and what each area are for then start trading.
Always use a routine and make strategies to learn new aspects of trading. Always take the guide from the expert traders. If you are someone who thinks there is no need of learning from a mentor, instead you are going to figure out everything on your own then be ready to lose your money. It’s not enough to know about the processes of trading make sure you apply them to see profitable results.
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