Forex is the largest financial market which offers investors to invest,trade and earn money there is a big number of non professional traders who invest and trade in Forex daily. Few are successful but many traders lose their money and there are solid reasons behind it. If you don’t have the knowledge or experience of the Forex market or you are a blind trader. Your winning chances are below than 0%. If you have knowledge and experience of the market and still you are not making money out of it then you have to polish your skills and have to focus on development of your own skills. Some common mistakes are discussed below.
Lake of knowledge and experience in Forex
If you are a small trader and you want to trade among the financial jaguars in the biggest financial market then you should have guts to dodge their moves and it’s not possible if you are not experienced or you don’t have the knowledge of the market. Mostly small traders invest the money blindly and they blame the luck in the end. If you believe in luck then this market is not for you.
Poor trading discipline
it Is the most common mistake the traders let their emotions control their trading decisions. If you are looking for big wins then you have to face small losses and you just need to manage. Trader should have confidence in himself and he should be strong emotionally.
Unspecified risk and reward
Risk involves in every trade, so trader should not take high risk. Trader should be aware of the capacity of his account to bear the loss and he should put a reasonable stop loss and take profit. To manage the risk and reward ratio trader have to find the perfect point for the placement of trade, for example support and resistance levels are best points to place the trade.
Trading without strategy
Trader have to build your own strategy or plan and he needs to stick to it. Trader have to set limits or boundaries, he should develop his own trading style. If you want to be successful then you have to follow your own rules and you have to make a documented plan, the plan which will be perfect logically and technically, the plan on which you can depend and follow religiously.
The people who want to become Millionaire overnight cannot become successful traders. If someone wants to earn thousand Dollars a day with investment of just $100 it means that he is taking a high risk and not following money management rule. He is on the way to lose money.
No one is perfect in trading even successful traders have big losing trades. If anyone want to be successful in trading then he have to learn first, he should build a relationship with successful Forex traders in community and after that he should make trading rules for himself. He should build a strategy according to his own trading style. You should learn money management and the management of risk to reward ratio. he should understand macroeconomics and he should be aware of the technical terms of Forex.