When you look at the price chart, you might wonder if the market is very easy. Some Singapore traders often think they are skilled at analyzing the market data and they can make a decent profit without taking any high risks. As soon as they start trading with real money, they understand the heat of the market. They soon begin to lose money regularly and some even quit trading. Though you will get easy access to the online retail trading industry, it is not so easy to change your life.
To become a great trader, you have to find the key reason why earning money has become so difficult in trading. Go through this article very carefully as we will teach you some amazing methods that will make the trading process easier. Most importantly, you will know why most of the traders are losing in Forex.
Define your success rate
You should have the ability to define your success rate. Success is not winning some big trades. You have to think of it from a wider perspective. Let’s say you have executed 30 trades in one month. From those 30 trades, you have won 60% of the trades and managed to make $2000 profit. On the other hand, a naïve trades made $10000 profit from 4 trades and in the next 6 trades he blows up the trading account. It should be clear why long term statistics are entertained in the retail trading industry. So, forget about the short term gains and try to come up with a unique method that will allow you to trade with low risk and improve your success rate.
Create a robust method
One of the key reasons for blowing up an account is the absence of a definite trading method. The rookies don’t even know why to trade ETFs? To them, it’s more like a gambling process by which they can take advantage of the leverage trading account. Leverage shouldn’t be considered as your trading tool as it decreases your success rate and boosts the risk factors. Instead of implementing an aggressive trading method, you have to create a unique strategy by which you can consistently earn money from this market. Once you become good at following the rules in your trading method, you can feel the change in your system.
Not having enough experience
You might say, without trading with real money no one can gain experience. The idea is wrong. You can open a practice account with Saxo and start trying trading methods. It’s not necessary, you have to earn money in the practice trading session. The practice session should be considered as your learning edge. Instead of making things complicated, come up with a unique strategy that can boost up the profit factor. Forget about the big winners or the professional traders. Try to gain experience so that you don’t become emotionally frustrated after losing a few trades. Stick to the trading method and trade with low risk.
Greed and aggression
Greed and aggression play a critical role in your losing trades. You can’t bring significant change to your trading method without controlling your greed and fear. Those who have the skills to manipulate their emotions are the ultimate winners in this market. To boost the profit potentials at trading, you have to tame the emotions. For this, you might have to do some meditation. But going for an expensive meditation course is not going to help. Take your time and ask yourself why you are losing money. Soon you will realize the winners are cut early and the losing trades are allowed to run. This simple mistake is one of the most common reasons why trading has become a hard profession. Solve this problem and stick to your trading edge regardless of the result.