Making money in Forex is very easy provided that you have complete knowledge of the retail trading industry. Sadly the majority of the traders don’t learn the basic elements of the market and loses a significant portion of their investment. They always take a huge risk to change their lives within a very short period of time. Due to their lack of knowledge, they never trade this market with managed risk. Just have a look at the professional traders. You will see none of them are trading the market with huge risk. You need to follow the basic rules of investment to change your life. Though there is much cause today we will highlight the key factors for which you are losing money.
High-frequency trade execution
The new traders think that they can always trade the market with emotions. Emotions have no place in the investment industry. Being a new trader it’s very natural to overtrade the market. The new traders often think the more they will trade the more money they will make. But in reality, you can never become a profitable trader with high-frequency trade execution. This will eventually force you to execute low-quality trades. So how do you stop overtrading the market? You have to follow the higher time frame data and trade the market with managed risk. A single quality trade execution is enough to secure your whole month profit.
The simple rule of money management
We all know losing trades are inevitable in the Forex market. Regardless of your trading skills and experience, you are going to face losing trades on regular basis. For this very reason, the expert traders always risk only 1-2% of their account balance. On the contrary, the novice traders always risk more than 5% of their account. After they lose a few trades they become frustrated since they never trade with the proper risk-reward ratio. You need to do the technical analysis and find high-risk reward trade setups in the introducing broker platform. Never trade the market with a negative risk-reward ratio as it will ruin your investment.
Ignoring the fundamental factors
Fundamental factors are the most powerful price driving catalyst in the Forex market. It allows the traders to understand the overall strength of the market trend. But sadly the new traders never do the fundamental analysis. They always trade with technical data. Technical data is very helpful since it allows you to find the most profitable trade setups in the market. But if you trade based on the technical factors you are always going to lose money. At times the market becomes extremely volatile due to the high impact news release. This is where you need to be careful and scale your trade. If you don’t keep yourself updated with the latest market announcement you might lose a significant portion of the investment.
The emotional approach in trading
Emotions can be extremely dangerous for the retail traders. If you trade this market with emotions, you are never going to become a profitable trader. But controlling your emotions at an early stage is very hard. But if you trade the market in the demo trading environment you can easily learn lots of new things. The more you will learn the better control you will have over your emotions. Stop following the other people advice since no one can give you the perfect trade signals. But this doesn’t mean you will not be listening to the positive advice. Learn from the expert traders. Join the professional trading network and try to become an active member. Your active participation will help you to control your emotions. Having a strong mental stability is very crucial to your trading success. Unless you trade this market with confidence you can never become a successful trader. So always trade with the conservative method of trading.
High-frequency trade execution
The new traders think that they can always trade the market with emotions. Emotions have no place in the investment industry. Being a new trader it’s very natural to overtrade the market. The new traders often think the more they will trade the more money they will make. But in reality, you can never become a profitable trader with high-frequency trade execution. This will eventually force you to execute low-quality trades. So how do you stop overtrading the market? You have to follow the higher time frame data and trade the market with managed risk. A single quality trade execution is enough to secure your whole month profit.
The simple rule of money management
We all know losing trades are inevitable in the Forex market. Regardless of your trading skills and experience, you are going to face losing trades on regular basis. For this very reason, the expert traders always risk only 1-2% of their account balance. On the contrary, the novice traders always risk more than 5% of their account. After they lose a few trades they become frustrated since they never trade with the proper risk-reward ratio. You need to do the technical analysis and find high-risk reward trade setups in the introducing broker platform. Never trade the market with a negative risk-reward ratio as it will ruin your investment.
Ignoring the fundamental factors
Fundamental factors are the most powerful price driving catalyst in the Forex market. It allows the traders to understand the overall strength of the market trend. But sadly the new traders never do the fundamental analysis. They always trade with technical data. Technical data is very helpful since it allows you to find the most profitable trade setups in the market. But if you trade based on the technical factors you are always going to lose money. At times the market becomes extremely volatile due to the high impact news release. This is where you need to be careful and scale your trade. If you don’t keep yourself updated with the latest market announcement you might lose a significant portion of the investment.
The emotional approach in trading
Emotions can be extremely dangerous for the retail traders. If you trade this market with emotions, you are never going to become a profitable trader. But controlling your emotions at an early stage is very hard. But if you trade the market in the demo trading environment you can easily learn lots of new things. The more you will learn the better control you will have over your emotions. Stop following the other people advice since no one can give you the perfect trade signals. But this doesn’t mean you will not be listening to the positive advice. Learn from the expert traders. Join the professional trading network and try to become an active member. Your active participation will help you to control your emotions. Having a strong mental stability is very crucial to your trading success. Unless you trade this market with confidence you can never become a successful trader. So always trade with the conservative method of trading.