The currency markets are known as the largest and easily reachable financial market throughout the world and has had a big range of Forex traders, surprisingly, most of them are unsuccessful.
The ratio of successful traders is only 5% out of 10 %, what are the reasons, though no definite answer for me, but I am going to be highlighting some common reasons here.
Trading Without Proper Knowledge
Most of the new traders start trading without getting proper knowledge of the causes that drive currency rate changes. The things they follow are momentum and crowd. When some news is expected they sell their positions and remain sidelined .So they miss the fundamental price move.
Trading Without Planning
That trader is considered the most successful who makes plans like expected return on his investment, risk management rules etc. This planning keeps him safe from some trading pitfalls.
No Proper Forex Trading Strategy
A successful trader has had a proper Forex strategy which includes, rules, guidelines, for timely entrance and exit to manage his whole trade. He or she does not follow guess and random decisions on the base of emotions.
The people who think that Forex trading is a source, to get-rich-quickly, they are absolutely wrong.Some new traders have had hardly any experience of trading and build castles to make $ 10,000 a month with l $ 1,000 capital. It is not wrong to set goals for having prices but you goals must be realistic and based on research, so before starting trade think, are your goals realistic?
Your big mistake might be that you involve emotions in trading decisions. If you are in search of action then you may as well go Las Vegas, where you would lose your capital but have had a blast when you are there.
Become a successful trader means attaining some big wins while having many smaller losses.
Most of the successful traders know that many consecutive losses can not be dealt with emotions. If you try to beat the currency market and fear this thing will lead you the point where trades get out of your control. You can manage your greed, fear by maintaining trading discipline. You should wait for the proper time with patience to carry out your plan. Forex trading is logical and straightforward, it is simple to succeed but common sense, hard work and discipline are necessary for it.
Learn Trading with Trials and Errors
The most expensive method to learn trading in the Forex markets is through trials and errors. It is not prover method for trading in the currency market that you discover the correct trading strategies by your every mistake.
The most efficient method to become a flourishing currency trader is that you must have had an experienced Forex mentor. This could be done by a trading education or by a Forex mentor who keeps an important track record for you and you don’t waste a fat amount of your money and become a successful trader.