Every day the number of Forex trader in the financial industry rising at an exponential rate. Majority of the new investors start their career with a hope they will become a millionaire within a short period of time. But do you really think this is possible? There is no shortcut way to become a rich person. If you want to change your life you need by trading the live assets you will have to work really hard. Today we will share some key reason for which trading is extremely difficult for retail traders. Let’s begin our journey!
Unrealistic expectations
The new traders don’t understand the key reasons for losing money on regular basis. But if you do some research on the losers of this industry you will understand why they are losing money. They always set unrealistic expectations from this market. For instance, if you want to double your account size every day it will be almost impossible for you. In fact, making 2 -3% profit per month is considered to be an excellent gain. But sadly the new traders never consider this small percentage as their profit. They always aim for 10-20% or even more in a single month. You need to leave this concept if you really want to become a successful trader.
Making things too much complex
Trading the market with a very complex strategy will never help you to become a successful trader. In fact, this is one of the key reason for which you will end up overtrading the market. If you can master the simple support and resistance level trading strategy you can easily change your life just by trading. Some of you might think the simple strategy will never be able to decipher the complex price movement of the Forex market. But just have a look at the professional UK traders in the spread betting industry. They are placing random trades in their spread betting account with a very simple strategy. Do you really think they are losing money in the long run? If so, no one would have traded for the large banks and institutions. So try to keep things simple in this profession.
Dealing with EAs and bots
EAs and bots are extremely popular among the novice trader. This is one of the key reasons for which you will be trading the market as a new trader. You might be thinking you will not have to work hard since all the calculations will be done by your EAs and bots. But do really think an automated software of bots can handle the world’s biggest financial industry. The manual trading strategy has always been the best way to trade the live assets and still now the expert traders are following it. So stop wasting your money on such EAs and bots. If possible find a professional trading course since it will significantly help you to become a successful trader.
Not following the basic rules of money management
Everyone knows trading is the most profitable business in the world. But how many traders consider the risk factors of this market. The newbie hardly knows about the proper way of managing their losing trades. In fact, they are always trying to win trades even though it’s impossible. Even the most experienced traders have to face losing months. Trading is all about probability and you will have to prepare for the worst-case scenario. Try to trade this market with a very low-risk exposure. It’s true that it will significantly limit the profit factors, but at the end of the day, you won’t blow your account like the majority of the traders. Protecting your investment should be your top priority. No matter what happens you should never trade with high-risk exposure as it will make trading extremely difficult.