You may have heard of it, or if you haven’t heard it before, keep in mind that 95% of Forex traders loss. The statistic may not be entirely true. In fact, not 95% of traders, 95% of beginner traders loss.
But why? Because they do not follow the basic rules of Forex. Let’s see what are the reasons –
Why traders loss on Forex?
Lack of Experience:
At first glance, Forex looks easy. Due to profit or loss, many people make a lot of profit from trading. So they decide to do a real trade. But if you don’t lose, you will never know how to deal with those situations later. This is why you have to seriously trade demo for a long time. But most people don’t want to spend that much time on demo. In that case, you can trade on a penny account. Wait, you will lose your first 2 Forex deposits. Try to understand and exchange. You will see that trading will be much easier.
Most traders trust signals. Trade with friend or strangers. Without any technical analysis, if someone asks you to buy, you buy. If you ask to sell, you sell. Loss as a result. Some people even buy signals for $ 100- $ 200 near the signal provider. If the signal is accurate why they sell? think Simple. You can become Bill Gates by trading yourself. Therefore, do not trade on someone’s words or by looking at forex charts. Try to trade forex with what you understand. Try to learn more. Ask the others.
Most forex traders don’t know whether to buy or sell. As soon as the price goes up a bit, they think it will go down again, then they sit down with the sell trade. If you trade this way, you will lose for life in forex. Try to do a market analysis. Research these and other indicators. Try to learn a few things from technical analysis. Little by little everything will become easier for you.
Big Risk in Forex Trading:
Most people think of the Forex industry as a money making machine. I believe that the balance can be doubled in 1 day in the Forex market. Most forex traders operate with a much higher risk in proportion to their capital. It looks like there is $ 100 in the account, but the $ 1 pip value trade is open. If you move 100 pips against you, you will become a beggar. So decide, start managing your money.
Don’t have a forex trading strategy:
You must have a trading strategy. How to trade, how many pips to stop loss or take profit, how much volume to trade, everything should be laid out in advanced in your forex trading strategies. And you must follow it in all your operations. Otherwise, your profit will be 50 pips on one trade and $ 50 for 50 pips on another risky trade. So first of all, create your forex trading strategy. Look at others’ forex trading strategies, then change whatever you want, create your own forex trading system of your choice.
Many traders are much more confident. They think that the price of the currency will go up or down now and will trade accordingly without any technical analysis. But man is the enemy of man. Don’t believe yourself. See what the market says.
Always remember when Trading:
- Do not be greedy
- Don’t be emotional
- Follow money management and trading
- Stick to your trading strategy
- Don’t trade without analysis