If you are presently on the losing side in the Forex market then the following tips we have here might be helpful to you. Learning from the tips I found here, I would like to bring your awareness to certain barriers in trading Forex as follows.
Lack of efficient knowledge
Most people that come in newly into Forex don’t take time to learn the basics about currency rate. When information about a new trade comes out they relax till the best trading opportunity is over. They only learned to trade when there isn’t much left in the market therefore they miss out on the best that is available in the market. Just think about trading with the left over in the market, it’s definitely not profitable.
Lack of trading plans
The thought of just making money is not a trading plan. A trading plan is what determines your success. It shows your strategy and method of approach towards your trade; if you have no strategy then you have no plan and you might just end up not achieving anything. About 95% of new traders quit even before they start.
Unstable trading plans
There is no business that doesn’t require planning with Forex inclusive. Your business or trade might remain unstable if you do not take the time to write out rules for the business that you will keep to. Make a plan, set rules, keep to it, set realistic goals, and you will be able to achieve them. Here is a guide for developing a Forex trading system.
Pay no attention to technical conditions
Getting to know if the market is over-extended long or over-extended short is a major determinant of near time price action. When the market is going one way it often results to spike moves.
Trading with emotions
If you lack a trading plan then it might not be so helpful, emotion does business no good. It would be a wrong assumption to believe that someone will be more reasonable when emotional or upset.
Miss trading around news time
Do not wait till the news is released before you catch up with the trading. Most of the important transaction happens around news time. The transactions are big and real; the best time to make the best trade is when the news is just released. This is when the real money shifts position and it causes price fluctuation which has an effect on currency flow.
Wrong interpretation of Forex news
The truth is that the media knows only very little about the news they report and most times they focus on just one point and ignore the important ones. Always endeavor to read the source of the information and understand what it really means.
The desire to earn a few hundred dollars daily just by getting a little profit whenever you get the chance is really not a good strategy and trading with tight stops and a target of making only little profit will make the broker rich.
Leverage is two sided. The broker would like to use a high leverage because it brings about more spread income this is because the level of your spread income depends on the size of your position. And you will earn more income if you have a bigger position.
Depending on others
Serious traders handle their issues themselves. They make their own plans and do not wait for the support of anyone before they take a step. There is no easier way, you either handle your own trading or you allow someone else do it for you.
Thinking for the future
It is best not to think for the future, just go with the present especially for day traders. When you trade with 30-50 points is best you keep your thoughts focused on the current on goings. That does not mean long-term trend is not useful it only means it might not be useful if you are trading within a short-term deal.
Trading is not such a simply thing. Statistics shows that there is up 95% failure. You might be doing great in your transactions but do not let it get into your head. You should always look for better ways to improve your trading.