You may have heard that 95% of traders make losses in Forex. The statistic may not be entirely accurate. We think not 95% of traders; instead, 95% of beginners make the loss. Again, it is not that those who are successful have succeeded too quickly. With a lot of hard work and talent, the entrepreneur finds his way to success. Butwhy can’t some entrepreneurs succeed when someone else is climbing the ladder of success? Because they do not follow the basic rules of Forex.
Let’s see what causes traders to lose in Forex –
Lack of experience
At first glance, Forex seems very simple. But while trading in real, traders face many crucial situations that lead them to lose. But if you do not lose, you will never know how to deal with those situations later. That’s why you have to trade demos for a long time, seriously. But most people don’t want to trade so much time in demos. And this is the first cause of loss in Forex.
Dependence on signals
Most traders rely on signals. When the signs say to buy, they buy, and when it tell to sell, they sell. But think about it, if the calls were always perfect, then why is the signal provider selling them? He could have become Bill Gates by trading himself.So don’t trade with inclination to listen to anyone or see charts. Try to trade with what you understand. Read more about the Forex market at Saxo and improve your decision making skills.
Most traders don’t know whether to buy or sell. When the price goes up a little, they think it will go down again and sell their currencies. If you trade in this way, you will continue to lose. Try to do a market analysis. Try to get an idea of the fundamental indicators. Try to learn a few things about technical analysis. Gradually everything will become easier for you.
Big Risk Trading
Most people think of Forex as a money-making machine. I found some beginners who used to believe that in one day, they can double their investment. So many newcomers destroy their FX career at the very beginning by taking a considerable risk. We should keep in mind that winning in Forex needs experience. So, invest as low as you can.
Lack of Trading Strategy
You must have a trading strategy. How will you trade? How much will be your stop loss or take profit? How much volume will you trade? Everything should be set in advance. Otherwise, you may not be successful to make a profit. So, first of all, create your trading strategy. Look at the trading strategies of others, then change what you like and develop the trading system of your choice.
Many traders become much more confident. They think the market will go up or down now and trade accordingly without any analysis. But always remember overconfidence isyour biggest enemy. Don’t believe yourself. See what the market says.
It is not wise to stop if you fall on the road; instead, you should take a lesson, stand up and continue your journey.Every entrepreneur has to face various experiences. He should have the guts to face and tackle them. But it is seen that many people lose their morale and interest in the business after initially stumbling. But this stumbling block was a valuable lesson for him. The identity of a true entrepreneur is to overcome every failure with patience and walk the path of success.
Many people start with heavy enthusiasm. But after walking a short distance, they lose it. They expect to be successful from the very first day. But when their expectation does not come true, they start tobe kind of indifferent. Success is something that happens in the long run. So never lose hope and continue your journey.
If you overcome the eight reasons mentioned above, we hope you will become a successful trader in the Forex market. But one thing needs to be said: “Besides avoiding mistakes, you need to follow the criteria of skilled traders if you want to win.”