One of the best things about joining forums is to interact with many other forex trading enthusiasts. And if you have been on the trading scene for a while, you begin to see common issues and concerns across different topics.
I am dedicating a post today to the most common trade problems I see in trade forums. In case forex newbies get a lesson and trading enthusiasts are mood for a throwback I also included some of my notes.
Take a look at five of them and look at one of them that you know!
The market is against me?
Losing a trade is especially difficult when you have spent considerable time analysing markets, establishing a good establishment and drafting a solid trading plan and then implementing it. The loss especially reprocesses when the price action against your economic activity immediately starts when you enter a position.
But you and your account have no forex gods waiting for you. More likely you missed a catalyst or caught up in a change in your environment that invalidates your previous preconditions.
As there are lots and lots of reasons why currency prices are changing, the best thing to do is make sure you prepare for as many scenarios as you can.
My broker is a scammer?
This statement should come as no surprise given the fact that there are a plethora of shady brokers out there. However, there is no shortage of anti-scam tips and tricks from reputable websites and forex trading forums.
Do your homework before handing over your hard-earned cash to a broker. Check with your local regulators to see if the broker is legit. In forums, ask around. Open a demo account to see if the broker’s platform matches your trading style. Finally, before you sign on the dotted line, READ THE FINE PRINT.
You can’t really live off of trading profits.
Check your rights. Or your expectations, at least. One of the most common misconceptions regarding forex trading is that in 21 days or less it can make you a billionaire. But it needs a lot of time, effort and discipline to be consistently affordable, as in any high-performance effort.
For example, an athlete would not expect to win trophies only because he purchased a racket and plays tennis once a week. Before he can turn his passion into a lifetime, he must learn the ropes of the game, condition his body and polish his skills and strategies.
As traders, you have to learn the important economic correlations and charts, travel through various trading systems and implement trading plans excellently and consistently before you can think about increasing your risk exposure (and potential gains) per business.
You won’t have a life outside of trading.
This is correct. Next!
I’m joking. Examine your forex trading goals and decide how much you’re willing to give up to achieve them. If you like scalping or day trading, cutting back on your Netflix binges shouldn’t be too difficult.
If swing or long-term trading is more your style, you might want to look into tactics and plans that allow you to handle the majority of your work early in the week and only check on your trades once or twice.
We accept the trade lifestyle we believe we deserve at the end of the day.