Many traders expect too much from the forex market, however, most of the expectations are pushed too high compared to reality. In this forex market, many gamblers who label themselves as traders still think they are trading. Let’s take a look at some of the reasons why traders fail in the forex market.
Don’t set Stop Loss
The best and simplest way a trader can do to limit losses is to set a stop loss. A stop loss is a level at which a trader thinks their trend prediction was wrong. Since they were wrong, they don’t want to lose any more money and they will accept stop loss, exit the market, as soon as possible.
In the gold or forex market, this stop loss can be a preset price on the chart of the MT4 software. Stoploss is a level where traders think they made a mistake when the market reaches this level. You already know a stop loss is a level at which a trader stops losing and exits the market for having traded in the wrong direction. It is extremely important that the stop loss level is a level that tells the trader when they are wrong. However, if you find yourself wrong even though you haven’t hit your stop loss, you need to exit the market as well, this will limit your losses.
The sooner you find yourself wrong, the better, of course, because that way you’ll get out of a wrong trade sooner and will spend less money on it. If you see clearly that you are wrong but still refuse to stop loss, then you are obviously lucky in the hope that the price will not hit the stop loss and then turn around.
Don’t set Stop Loss
Don’t know how to manage capital
In fact, the exact probability of a trader is not very high, and even for seasoned traders, achieving a 60-70% probability of winning. Even if you achieve a 70% chance of winning, you will still lose if you do not have a proper money management method, this is very important. And in order to manage money properly, it is imperative that traders first know how to do one extremely important thing, which is to learn how to limit losses.
Not knowing the balance of capital in trading is also a cause of failure.
If you cannot limit your losses, it also means no money management. And no money management will mean failure, worse, the loss of all invested capital.
There are two completely opposite mindsets, some traders let negative thoughts creep into their heads, leading them to believe that they will never become a consistently profitable trader. Successful traders push themselves and understand one thing: risks are always associated with trading.
Successful traders know that losing an account is a bad thing, it is a fact that this can happen to any trader. Instead of getting discouraged and doubting yourself, you should see this as an opportunity to learn, grow, and improve into a better trader, thinking better before thinking about success.
Greed
Only when feeling scared or not in a good mood will they avoid entering the trade. Because, they realize that it is better not to enter a trade than to lose money. That is the way to solve all greed in the forex market.
No matter how good your decision to enter, the Forex market has the potential to reverse with your prediction. If you understand this well while trading, you will not be burdened when the order is lost. All you need to do is prepare mentally to face the loss, save your life before thinking about getting rich. You always have to prepare your mind to face possible losses. This will certainly reduce the impact of negative emotions. Risk awareness is an important thing to know when it comes to this inherently pitiful forex trading psychology. If you don’t know how to control your greed, this can be done well by seasoned traders.
Know when to stop
Lack of knowledge
One thing that never ceases to be important in the forex market is learning, especially for new traders. With thousands of trading strategies, mastering the available indicators. But there is still a difficulty that makes traders still unable to make good profits in the forex market. This is something that beginner traders often forget and don’t care about. That is the skill of managing emotions in Forex trading, emotions are always an important factor.
Moreover, if you have expertise in market analysis or possess an extensive knowledge of Forex. That is not the only factor that determines the success of a forex trader. But if you don’t have it then you are sure to fail.
