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Forex market although is a sure place to make money, it is also a place where losing money happens every now and then. While in the past, the hopes are too high that this lucrative market would make each one of us richer but suddenly this once a bright money-making idea has a changed scenario; the many tales of traders losing a great sum of money. Although the blames are on the many factors that surround the market, traders themselves share a common factor that may have in many ways trigger the harrowing tales of losing in the Forex market.
With many of them frustrated over their losing experiences, traders have set aside dreaming of making millions overnight and are now more on hoping to stop their losing streaks. In order to do this, first, the traders must realize and accept that their losing trades were greatly attributed to the mistakes they have done in their past trades. Instead of blaming others they must first assess what they did in the past that have made them lose money.
Here are some questions that may help you assess your trading mistakes:
Do I have a trading plan?
You must. You must have one and had in some ways perfected it. One of the mistakes of traders is to look for fancy indicators that they hope would make them rich faster. They go for the method that leaves nothing for them to do except to count their money. This is not true in Forex market and no matter how good the sales talk is, doing nothing isn’t the way of getting rich in Forex market. You must have a trading plan and you must learn this method, use it and perfected it. There isn’t a method that would give an overnight success (Although some may claim their method can) as gradual success is better than losing all at once.
Am I an all-day chart watcher?
Don’t count yourself among the traders who commit the most common mistakes of being an all-day chart watcher. Watching the chart isn’t the one to blame but by doing so, traders are tempted to do actions that may trigger wrong trade decisions. They’re open to entering trades when it isn’t the best time for them to do. This is also similar to taking trades when they’re not supposed to. They also tend to take profits when they’re not allowed to and tighten stop that aren’t allowed either. Watching the chart all day is not a bad habit as long as traders do nothing and just allow his method works for him. Watching the chart once is better that spending all day watching it only to make them susceptible to doing no recommendation trade.
Am I only a lower time frame trader?
There is nothing wrong in doing trade when the time frame is lower, however, it best if you can also learn how to trade when the chart goes for the higher time frame. The reason for this is the extra time on the daily chart and when both signals are compared, the higher time frame is more reliable in terms of signals than those of the lower time frame chart. If you want to turn around your trading, try to learn the higher time frame trade.
Do I risk money more than I can afford?
Don’t fret if you only have a hundred dollars in your account; it is just alright. It is also best if you have mini and micro accounts where you can risk a few dollars on a single trade. This will allow you to gather enough trading experiences and continue to carry over the correct money management that your micro account had instilled in you before actually getting into the real trade. You can also build up your account by the savings you’ll be making with each practice trade.
Do I have the correct trading mindset?
Let your mind work over your trading. You must understand the psychology side of Forex trading as it is not all about winning or losing money. If you allow your trading to be purely based on how you approach the market and on how you think about it, it is easy to make mistakes. Traders who have committed themselves to Forex trade must also commit themselves to the battle that has to be won. Correct mindset is the only way to win over your battle against break -even trading. It is not impossible to turn your small account into a big hedge fund if you only knew when and how to act. Thinking Forex in the correct manner will likely scope you out from losing.
Conclusion
Forex market is a neutral one that is not out to favor or go against any trader nor it is there to make everybody feel better or happy. Everything that happens inside the Forex market is part of it. No matter what other people think about the Forex market, it remains to be a good way to make money and that is hard to disprove. If one wins or loses, it is the results of his actions based on his thinking about the market. As you keep on winning there’s no one who deserves most of the credit but you. Professional traders may brag about having secrets of their success, however, most of these are the open knowledge that needs not to be discovered. Playing your trade plan and trading with a plan is what most of the times takes you to the path of success.
