In every business, there will be ups and downs. No matter how much effort you put to develop a certain business from scratch, you are not going to experience an exponential profit curve. Due to the basics nature of supply and demand in the global market, you will have to face ups and downs in your cash flow. Those who live in Singapore might say, the experienced traders are always making a profit and they don't have to work hard. But this is a big fat lie. Even the institutional traders are losing money and they have worked hard to develop their skills. Due to their strong determination and devotion, they have managed to create a perfect trading system. Let's discuss the top six reasons for which the investors are losing money.
Failing to understand the market natureThose who are new in the trading profession, don't understand why the price of the financial instrument is changing. They don't understand how the financial market works. Without having strong knowledge on a certain topic, it's nearly impossible to make a profit from this market. As a new trader, you have to take advantage of the Saxo demo account and trade the market with managed risk. Try to develop your skills based on simple logic and trade the market with low risk.
Failing to manage the cash flowYou must learn to manage the cash flow in any business. You might get the responsibility of the big business but without having the cash flow management skills, you are going to lose a huge sum of money. To make your life much better, you have to push things to the next level. Never think you can change your life without doing the hard work. Know your risk exposure and trade the
Forex market based on the principles of successful traders.
Failing to identify the problemsYou must learn to identify the problems in trading or else you will never become a successful trader. Those who are making tons of profit know the ins and outs of this market. They regularly revise their trading strategy so that they can keep pace with the dynamic nature of this market. You might think by buying an expensive system from the professional traders, you can make huge profits. Things don't work like this in real life. Learn from your mistakes and you will improve your skills in trading.
Find a mentorYou must find a mentor to learn the details of this market. Learning the art of trading by reading books and exploring online resources is a very challenging task. Most of the time, the rookie traders fall into the trap. If you get help from the professional mentors it won't take much time to understand the blueprint of trading. There is nothing wrong to take a professional course in trading. So, do some research and find a good mentor to learn to trade.
Focus on proper researchWhen you do the market analysis, make sure you focus on in-depth data analysis. Never try to trade the market without doing the homework. Use the technical and fundamental parameters to find the potential trade setups and you will have a much higher win rate. Though these are a very complex process with proper devotion, you can easily change your life. Always remember, emotions can't help you in the trading business.
Be prepared to loseYou must be prepared to lose trades or else you can't make a profit in trading. Most of the traders try to avoid losing trades and eventually they make trading a very complex. Forex trading should be considered as a very easy task. Never try to make things complicated by using too many tools or variables. Think like experienced traders and find the trade setups based on simple logic.