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5 Bad Habits of a Failed Trader

Failed trader

In this post I will mention 5 bad habits that Forex failed traders have been holding for 1-1.5 years from the very beginning.

Bad Habits of a Failed Trader

This post is purposeful and its purpose is to help the traders of this stage to correct their mistakes. Hopefully, the purpose of the post will be successful.

Taking more than 2% risk one of the reason of a failed trader:

Money management is important for forex trading. Every trader should follow strong money management. ‘Never Break This Rules’. Never deviate from the Money Management Rules. Even if you think that your trading idea is very strong and High Probabilities Trade Set Up, then it is not right to take more than 2% risk, should not and should not be taken. If you take 2% risk, you can trade 50. On the other hand, if you take 10% risk, you can trade only 10. Now think about the chances of you succeeding in these 10 trades if you take a 10% risk, and the chances of succeeding in 50 trades if you take a 2% risk. Again, if you take a 1% risk, what are the chances of success in 100 trades.

Second reason is they are Greedy and idiot:

Greed is the main enemy of Forex traders. I know that a person who is absolutely greedy, who says that he has no greed, and if he comes to trade in Forex, he will understand how much greed he has. Here greed rises with a head start. Greed is responsible for the untimely death of most traders’ trading careers. If you don’t give up greed, that person will never be a good forex trader then will be failed trader. This greed will encourage him to take more and more risks. If you take more risk and don’t succeed in trade, you will get more. But if that trade does not succeed and fails, then you have to digest such a large amount of loss. And since the loss is a large amount, the chances of indigestion without digestion are high.

Risk: Do not accept the reward ratio is third reason:

Trading means taking risks. However, if you have to take a risk, you should take it in such a way that if you take a risk of $ 10, you will get at least $ 20 in return. If you are interested in starting a business, do you expect that by investing 5 lakhs of money and spending time and labor, that 5 lakhs of money will only come to you from that business?

If you don’t follow the proper risk reward ratio, 50% -60% successful system will make you fail. And if you accept Proper Risk Rewards, a 30% successful trading system will lead you to success.

Another reason is they have so Extra confidence:

Confidence is a very important issue for forex trader. Without self-confidence, no human being can stay away from big things in life, he can’t do small things. If you don’t have self-confidence, you have to go back step by step, you can’t go forward.

But there is another thing, when self-confidence exceeds the level, it has an adverse effect again. Most new traders follow this issue. Not only new traders but later. 6-12 months experienced trader and suffer from this problem. When 6-7 consecutive trades are successful, it seems that a lot has happened by itself! Many have become big traders. Consequences – Taking positions without considering as before and zeroing the balance or losing more than half of the original capital. More than half of this is due to the fact that this extra confidence does not go away before eating a large amount of loss !!!

Five no reason failed trader is Excessive thinking:

Excessive thinking is another bad quality! Many traders love to over-analyze. Over-trade, over-leverage and even over-thinking about what comes into their trading. But not everything that needs to be done, including chart analyzing! If he doesn’t think about these, how can he be a trader !!!

But what cannot be done is ‘over’. That means nothing can be done over. Everything has a certain dimension, that dimension cannot be exceeded.

In conclusion, I would like to say that you can walk the path of a successful trader only if you can avoid the above 5 bad habits. And that path will not be far off when you continue to build your ladder of success without these. If you want to get something, you have to suffer. You just have to be more discriminating with the help you render toward other people.

Are you willing to hard work?

Failed trader

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