Several common problems keep a trader from making expected money by trading Forex. Most of the time, what beginner traders do is instead of focusing on solutions, they concentrate on the problems. If you are trying to earn some money from trading but don’t know where you are going wrong, this article is for you. All you need is to be patient and think a bit different from the other traders. That’s what professional traders are doing.
This article will concentrate on solutions. We won’t write any problem with bold font. Instead, we will describe the solutions so that all problems will be eradicated. Let’s begin.
1. Consider taking a long break from trading
Sometimes the best thing to do is to make his mind blank and clean it completely to start fresh. In the business of trading, it’s easy to get frustrated and emotional. Having both eyes glued with the computer screen is another way to freak out. Besides, Forex trading is about making a lot of decisions and attempting to make all of them right is highly stressful for a person.
That’s why taking a break from time to time is one of the best things you can do to decrease your stress. So, you can be more refreshed, accumulate some new energy and start trading again.
2. Take time to estimate the risk
Many traders become confused when determining a healthy amount of risk he should take per trade. What you can do is either;
- Risk a particular amount that you can afford to lose in the next 20 trades and still have sufficient capital to proceed with your trading.
- Risk a particular amount that will allow you not to care about or winning or losing. In short, you have to trade ETFs with managed risk all the time.
The larger the size of someone’s position against his account size, the less likely it is that they will find peace. It is mandatory to keep the risk per trade at a certain level that will enable to think rationally and critically.
3. First double the account and them increase the risk per trade
Many traders tend to make the colossal mistake of augmenting the risk per trade once they succeed to win, even for a single time. Nothing will push a trader in deep water faster than making this mistake. Only a few trade trades cannot reflect a trader’s ability. But if you double or triple your trading account based on the actual dollar risk per trade, it will demonstrate your trading ability.
No one should decrease or increase the amount of risk per trade and depend on only a few trading outcomes for all their profit.
4. Avoid reading economic news
One of the major reasons that makes traders suffer and lose their capital is that they become dependent on many variables. Reading various economic news each and every day is a common habit of every trader.
However, most of the time, it only makes traders doubt their own knowledge and hunches. Besides, economic news does not say or imply anything that hasn’t been implied by the price action already. So, if a trader only learns how to get raw information from the price action, it will be satisfactory.
5. Make your chat thinner
Many beginners and some experts think that the more technical and fundamental variables they analyse, the greater chance they will have to win a trade. The reality is totally different.
When someone clogs up his monitor with loads and loads of indicators, the chances are, he will skip the most important one to check when the time comes.
So, these are all the common solutions to all the common problems all Forex traders face in their day-to-day trading. We hope you can use them to help find a way to success.