10 Reasons Behind Forex Trading Failures
Over the years, several Forex traders have burned their savings and investments after trying unsuccessfully for years in the business. This serves to prove that currency trading is not an easy business. However, for engaging in Forex trading in Indonesia, one needs to understand and analyze the reason behind the failures of forex traders. Major reasons behind the failures in Forex 1. Looking for a Holy Grail: Traders tend to search for a single step to success while online trading. This is the most dangerous way to trade. 2. Not sticking to a plan: Drawing a well-rounded plan and sticking to it is highly vital. Not following this could lead to failure. 3. Improper mindset: An effective trading mindset is vital for Forex trading success. Executing trades with greed or other motives can yield poor results. 4. Poor risk-to-reward ratio: When engaging in trades, one must be sure that its returns are sustainable. Having poor risk-to-reward ratios can drain both resources and efforts. 5. Improper trade size: Position sizes should always sufficient enough for success. Having a position size that is too small can yield poor results despite being successful.
6. Overtrading: Entries and exits should always be swift and according to the forex trading strategy. Once the profit target has been reached, traders should exit the market and not look to prolong the exposure. 7. Risk Management Strategies: Traders should have proper risk management strategies such as Stop-Loss and Take-profit. Not using these effectively could lead to losses. 8. Mentor: Choosing the right mentor is crucial for success. Partnering with an online broker in Indonesia like WesternFX can help traders gain access to mentors. 9. Emotional trading: This is highly dangerous as it leads to erratic trading. Traders should stick their plans and not let their emotions get in the way when they are executing trades. 10. Casual trading: Engaging in the activity without understanding its significance as a business activity can lead to losses. These are the major reasons why traders remain unsuccessful while online trading. However, to break this trend, they can always get in touch with WesternFX, a reputed Indonesian Forex broker who can bring forth the discipline required for success in the area.