Are you a Forex trader who is having a hard time cracking the code that so many other online Fx traders have seemed to have no trouble cracking?
I was too – only a short seven years ago to this day, I was a newbie to the Forex market. To put a long story short, I was floundering. I couldn't turn a profit if someone were to tell me "Hey, dummie – if you sell this and buy this, you will make a 10% profit in 10 minutes."
I was too speculative, to the point that I could never just pull the trigger on a sure fire trade. Now, we all know trades in Forex aren't always sure fire. But, sometimes you get a gem, whether it be based on the news, or just an in your face obvious trend.
A few of the main reasons why new traders to the Forex market fail before they can even get a foot in the door are as follows:
1) Impatience – One of the things I learned a long time ago was to not back out of a trade too fast. If you have a trade that you're positive will turn you profit, hold on to it. Chances are, if you're doing your homework, you'll be right.
2) Stubbornness – Now, just because you need to be patient doesn't mean you need to be careless. If a trade is just constantly sinking into the red, you need to learn when to call it quits. Throwing in the towel on one trade isn't the end of the world. Your goal in investing Forex is to win the war, not every single battle.
3) Ignorance – No, you are not ignorant. You can prove that to yourself by simply walking down the street and asking the first person you see if they know what Forex is (they probably do not, so you're already a good step ahead). However, just knowing about Forex isn't enough.
Make sure you pay attention to world news, and don't get caught up in only reading the charts you see in your trader software. Reading the news is essential to any established trader's routine.