leverage.fonetekno.com– Seven Amazing Reasons Why Some Forex Traders Make Losses In The Forex Market. Online currency trading known as foreign exchange or online forex has become one of the most profitable Internet businesses going on by the number of people who join the business.
In addition, the liquidity characteristics of the market make it more attractive to many new angles. In early 2008, just January, the daily volume of forex traded daily was over $2 trillion this figure is huge when compared to the New York Stock Exchange Daily stock exchange which is no more than $25 billion dollars.
The potential to make it big in the forex market is therefore huge following the liquidity of the market as mentioned above and the fact that few people know about the forex market. Some of these traders have all been making huge profits from the market.
In recent times there has been an explosion in the number of forex traders joining the forex market. Because people’s consciousness had awakened and the cotton covering their eyes had been pulled off.
However, the risky nature of the forex market quickly began to show ugly heads as soon as people joined the money market spinning. So many traders find that it’s not as soon as any of them join the market that they lose all their investment and turn around.
The few who didn’t lose anything to the market didn’t make any progress. It even shows in the report that about 95 percent of forex traders lose from the market.
It is this negative development that prompted me to write this article clearly showing the biggest reason for most forex traders to lose.
Seven Amazing Reasons Why Some Forex Traders Make Losses In The Forex Market
Seven understandable reasons will provide guidance for worried traders who have fallen victim to these costly mistakes. Let’s take a quick look at seven reasons why brokers have lost brokers.
Reason #1: lack of good training; some forex traders only attend one or two seminars that last a day or two. And after this they only demo trade for two or more weeks before they go for real/live trading.
One funny thing with this set of people is that they want to start making thousands of dollars the day they start trading. They have forgotten the fact that it will take them four to five years before they can graduate from third school and master their field of interest.
In short, improper training, physical training and coaches are often the reason why some people fail in the metal trade.
Reason #2: over ambition and greed some traders are over ambition and greed. This set of traders want to make Million Over night.
Instead of using effective risk management principles by not trading with more than 2 to 3 percent of their money these stock traders will want to make big profits from single trades.
Therefore, they swell their risk management and enter the market with what they cannot afford to lose and when the trend goes against them, they often find themselves in a weakening state and eventually loose exit the market.
Reason #3: lack of discipline to follow forex trader strategies developed for himself. If there is anything that can quickly break a forex trader, it is a lack of discipline. If forex brokers lack a good culture and discipline to follow the strategies they developed to make important people like traders, traders will continue to run after the shadows and in a long time loose all their investments
Reason #4: lack of strategies and methodologies to help traders to make entry and exit decisions. There is no advantage that some traders still believe that the forex market is like a casino and therefore, they can always gamble to make money in the forex market.
Then faster they fumble and somersault in the market. It is necessary for traders to develop effective strategies that will help them to enter and make their way out of the market.
So far, stop loss, lagging loss, taking profit points and important points to be made in the strategy all these will make forex successful, determine the best time to trade as well as currencies that will often be opposed by some traders and this will affect their traders performance.
Reason #5: Over reliance on one or two indicators; Another common mistake traders make is depending too much on one or two indicators which may not be enough to predict varying market conditions. Some traders do this for their own benefit until they lose all their money.
While it is good to use indicators so that one will be able to determine when to trade or not it is advised that a combination of both fundamental analysis and technical factors should be considered when trading.
Reason #6 : Bad Money and Risk Management Practices: Most traders out of greed often trade with more than 20% of their invested capital trading what at the time they are called definitely news. (And when news comes to them) regarding the results achieved by the expedition of the Prophet’s army.
A case in mind is a trader who has $1000 dollars in his forex trading account and decides to take $800 dollars to trade. Trading turned against him and he called margin – visit the link below for a better understanding.
Reason #7: bad broker or platform; In choosing a platform there are factors to be considered one of which is the rate at which a forex broker executes instantaneous broker orders, some platforms are so poorly designed that all of these factors may not be treated properly.
If a trader uses a slow response broker, then it is very likely that when a trader gives an instruction to buy or sell a currency, the trade will turn against the trader before such an order is executed. This type of situation is not uncommon if the broker is bad and not good with an up-to-date and standard platform chosen.
After going through the seven reasons why some traders fail and will still fail, you are advised to take note of these reasons and do a quick self-examination to see how best you can adjust and improve yourself.
If you need to read more about the forex topic so you can master the points covered why not visit the link below. So you can polish your forex trading skills.