10 Reasons Why You’re Failing to Make Money in Forex Trading.
If you’re frustrated with your trading time for money, then you’re going to love what I’m about to share with you. Something I’ve realised over the last year is that being successful forex trader is as much to do with having the correct attitude and mindset as anything else.
Like any new venture, there’s a steep learning curve involved building a profitable expert advisor and it can often be a frustrating experience.
Particulary as the daily bombardment of marketing messages about new forex trading systems and new expert advisors tends to make you feel like you’re the only one left not making money.
So anyway, I’ve been thinking about why many newbie’s find it difficult to make money in forex trading. Here’s my top ten reasons…
- Spending too much time reading, learning, buying, watching and not enough time DOING your own research.
- Not taking your trading business seriously enough.
Always keeping a trading diary; by keeping a diary forces you to think through your idea because you have to write it down. Additionally a written trading record provides you with an opportunity to review your thought process so that you can replicate the successful trading ideas and modify the unsuccessful one.
- Not focusing your efforts on a trading system (whether it be day trading, swing trading, scalping trading or whatever) for long enough to see results.
Often this is because you get distracted by the ‘next big thing’ forex trading system or new expert advisor being promoted by all the so-called ‘guru’s’. You must trust your own trading method. You must have a methodology by which you go about your trading business and you must trust it; otherwise you are not operating in businesslike manner. you will end up chased the crowd.
- Because there are so many forex trading system and forex mechanical system (metatrader expert advisor), it becomes almost impossible to know where to start. So you end up doing nothing.
- Lack of perseverance. You start off thinking earning money in forex trading is easy (because everyone else seems to be doing it) and quickly become disillusioned and give up when it dawns upon you that it actually takes hard work and dedication.
- Directing all your efforts into a forex trading system that is either unprofitable, or you lack the knowledge to make it profitable.
- Not setting up your forex trading system or your expert advisor in the right way to be profitable from the outset.
- Lack of a clearly laid out route to success. Always be aware of the bigger picture. A very important factor in having an edge in the market is to be aware of the big picture-where the trend goes and identifying the support and resistance of market that exists.
- A failure to set practical, achievable, specific goals.
Lot of newbies set an impossible profit target and set your goal to high. There is no free money in forex trading. Don’t dream it, many so called guru advertise their very profitable a trading system which almost guarantee make profit every month.
- You are not using smart money management.
You need to know when to cut your losses. Wheter you are fundamental or technical trader, always remember that market conditions change all the time. Most newbies ‘believe’ the market at the end will play out your way, and you end up losing to much money.
Perhaps some of those ring true with you? I know I’ve been guilty of most of them at one point or another. So if you do recognize yourself in that list, atleast take heart from the fact you’re not alone. And remember, it’s never too late to change bad habits or direction if necessary.