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Even though they use the most detailed charts, mechanical tools for trading, various indicators, and devices for elemental analysis, foreign traders also known as forex traders do lose their investments time-to-time. Even the most well-known and expert investors have in their days suffered loss and heavy blows. Experts are of the opinion that like winning, losing is a systemic- requirement of the process of trading.
An array of variables come into play and affect the task, such as decision- making skills, pressure from peers, mental aspirations and aspects, unsuitable trade terminals, and for some even superstitions. Following are the most- recognized reasons for trade loss.
Inadequate Risk Management
A very high skilled trader could be a victim of poor management actions. Traders who get caught up in the investment- profit and re-investment chain and do not prioritize the safety of their profit are more likely to incur losses. With less capital to invest, the chances of making a profit also go down. Setting up stop- loss and take- profit if used at specific points in the process of making trades can result in the achievement of sufficient gains. Lot sizes are also to be focused upon, and if they are in reasonable comparison to the account capital, then it is good news.
Management of risks is vital in a market, be it volatile or not.
Emotions if kept at bay while trading is the way to go, but human is rarely away from them. Greed for more profits, jealousy from a colleague, desperation, and at times over-confidence. Traders hold on to their positions, with specific tactics and techniques applied that reap in similar patterns, but if they don’t get on before the currency pair turns, they stand to lose all that they might have earned. Currencies are fluid and move frequently. To wait for the last second can be a grave risk.
Apart from greed, the most prominent emotion is a fear that needs to be tackled. When suffering from a series of losses, many traders make the mistake of stepping out from potential profit-earning investment and in turn lose good opportunities.
On the other hand are the ‘know-it-all’ traders. A string of wins makes the person overconfident. Mistakes, like life, are a part of trading, and owning up to them is the best option. Not learning from the mistakes result in failures, and thus losses.
Trading Tops or Bottoms
Beginners tend to spread their investments and add on to bad trades. Too much focus on turning points, place trades, currencies, in a hope to establish a pattern is common. But this, in turn, poses the risk of exposure to negative account balances. Aggressive decision-making makes a recipe for disaster, for instance choosing a bottom while a downtrend is not always fruitful, as, experts traders would do so once the market starts correcting in an upward direction. To think that beating the market to prove a point is a common habit among traders.
Like any acquired skill, trading as a profession is mastered with practices, work, and learning that expands over the years. Keeping a log or journal of the moves, investments and otherwise might come in handy. This would act as a record of decision that has been made and hence will help to repeat the good tactics and eliminate the bad ones.
If you are in trading business, the solitary nature of your profession needs no further mention. Therefore, it is clear that you need to set up goals and stick to those to keep going with a determined and positive mindset. We are almost at the end of the first month of 2019, and you should not dilly-dally in creating realistic goals. When doing so, it is essential to do some research and evaluate your needs. Once you are done with creating your New Year resolutions for trading business, it will be easier to develop some meaningful and result-oriented habits to accomplish the goals.
Assessment of Goals & Achievement
Your actionable goals should be based on your experience of the last year. Even before you set up goals for the next year, it is essential to identify the mistakes and evaluate the strategies that led to success and failure. It will help you avoid the mistakes and stick to as well as develop effective strategies. Do you think it necessary to devote more quality time to your business? Which aspects of your business made you stressed-out last year? Identifying the stress facts of the previous year will help you make adequate plans to deal with those negativities.
Outline the Basic Plan
Once you are done with revisiting your past year’s achievements and reviewing your plans, get down to outlining the goals of the ongoing year. Take decisions about the trading hour as well as profit goals. With the trading market remaining open round the clock, decide on the slot as per your convenience. For example, the time slot between 7 AM CT to 11 AM CT is considered the most liquid time in the US equity futures market. Do you have a plan to trade for just a particular time period or 24 hours?
Assess your personality and choose the right instruments for investment accordingly. What kind of trader are you – a scalper, swing trader or position trader? It is also essential to decide if you wish to invest in a volatile asset or something that takes time to grind. Create realistic, time-bound and measurable profit goals.
Calculate Return-Risk Ratio
Now take your time to determine the percentage of your current trade capital that you are willing to sacrifice. Being an active trader, you surely look for the short-term opportunities to make a profit. However, it is also essential for you to develop strategies not to incur a loss.
Search continuously for different and workable strategies that will provide a competitiveedge to your business
Prepare plans earlier to avoid losses
Make sure to stick to the rule of “keeping accounts high” that requires you to reap profits early.
Stay disciplined not to be swayed by emotions like greed, revenge or fear.
Refresh Your Market Knowledge Everyday
You surely witnessed to highs and lows in the 2018 financial market. According to the financial pundits, the market will continue being volatile even throughout 2019. Make it a point to get an economic calendar this year. Keep yourself updated with the news releases. With Brexit being scheduled for March of the ongoing year and the US Federal government supposed to pump up the interest rate in the upcoming few months, you need to proceed with calculated moves that are easy to adapt to the changing scenario.
Review Monthly Results
As a professional into the trade business, you should learn from your mistakes and efforts with an intention to make every upcoming day better and brighter. Making process-related goals will help you not to deviate from the right track. It will also teach you to avoid excessive risks.
Tip: Start maintaining a trading diary if you don’t have one.
Market experts or analysts are good at making predictions about the market. In fact, most of them always accurately predict the direction in which the market would move in the future. However, when it comes to trading their own funds, they often end up putting a miserable performance. The reason behind this is pretty simple. It’s their trading psyche that gets in their way of earning profits. In this article, find out why analysts don’t make the best forex traders.
Why do Forex Analysts fail at Trading?
Successful trading is all about adopting the right emotional strategy or approach. Trading isn’t limited to analyzing of charts or keeping track of the latest news and updates. It is incredibly complex in nature and requires consistent strategizing, market research and above all, discipline. Traders must have control over their psychology and emotions for profitable trading. When you are attached to your trade position, then making an accurate and unbiased analysis can be extremely difficult. This is precisely why market analysts don’t consider trading themselves.
The moment they put their trading technique to test and find their theories materializing right in front of them, their objectivity is lost. Somewhere, they start experiencing emotional issues, and their psychology fluctuates as and when the forex market moves up or down. In rare cases, traders find their ego expanding. However, in most of the cases, it gets bruised or distracts them from their goal.
While it is difficult to measure how earning profits or incurring losses affects one’s psyche, it definitely impacts every trader in a different manner. However, any decision one makes will always be clouded after you achieve success or endure losses. This implies that any strategy/technique that you had once been positive about could suddenly go wrong when you have doubts, greed or fear in mind.
For instance, a portfolio manager is responsible for designing a strategy/technique that offers maximum returns to the investors. However, this is a highly complex procedure and requires a great deal of effort at every step of the process of trading. This is why firms that manage investment look at dividing the task as well delegate.
Typically, an analyst studies the forex market as well as evaluates the impact of multiple investment opportunities. Furthermore, a risk manager steps in to assist in matters related to diversification of trade as well as sizing. Lastly, a forex trader implements the strategy on their as well as the investor’s behalf. Hence, the portfolio and risk managers are detached from implementing or executing the trades. This retains the integrity of their investment methodology, and their probability of failure by emotional attachment is minimized.
Emotional Detachment is the Key to Success
Traders can improve their trades by becoming their own investment managers. In fact, they can use a number of strategies to minimize their losses in the market. For instance, they can keep their risk at the minimum level by opting for a trade size that would easily survive their worst predictions. In other words, traders can prepare themselves for a worst case scenario and include a stop-loss limit in their plan. It is equally important that traders set a precise target and utilize Take Profits orders for automating the trading process. Traders can always place their trades and move further. They can look for other things or opportunities to distract themselves. Besides, they must also set pricing alerts on their MT4 account. This way they can keep themselves informed and not get emotional about their trades.
Traders must be quick and flexible in their decisions as what seemed valid during the planning stage, may not necessarily be appropriate or valid after a major news announcement or development. Finally, the trader must never think that failure is permanent or personal. It is always a good idea to adjust according to the market feedback and detach yourself from your trades. This would ensure success in the long run.
Forex trading is meant for those who have a knack for trading, despite the market pressures and rate fluctuations. Although many find the forex industry to be boring and complicated, the truth is that it is full of fun and interesting facts. So, continue reading to discover 10 fun & exciting facts about the forex industry.
The Market Has Witnessed its Worst Rate of Inflation
Even though many of us assume that the rate of exchange moves only by a couple of points or so, it isn’t the case always. In the year 2008, Zimbabwe witnessed its worst rate of inflation, where the country’s currency was valued at 6.56 sextillion %.
Have you ever wondered the number of cars you could purchase with the volume of global forex trading carried out on a single day?
Well, if you haven’t then you will be surprised to know that around $5.3 trillion is traded daily on the forex exchanges around the globe. Given, the amount of money that is traded on forex markets every day, you can easily afford to purchase one car per family in the United States. In fact, you will still be left with sufficient amount in your hands that could be used for buying another vehicle for them.
The United Kingdom is the Globe’s Biggest Market for Forex
The United Kingdom is the biggest market for forex in the world. Almost 41 percent of the forex related transactions take place in the country as opposed to 19 percent that takes place in America. The remaining 40 percent of transactions occur in other countries around the globe.
Most of the Retail Traders are Unable to Make Profits for 4 Consecutive Quarters
While each one of us wants to earn profits through forex trading, many of us are unable to fulfill our goals. A recent report revealed that around 99.6 percent of the retail forex traders are unable to earn profits for 4 consecutive quarters.
GBP/USD Pair is Referred to as Cable
Even before the advent of satellites and fiber optics, the London New York and London based stock exchanges communicated through a long cable made of steel that ran underneath the Atlantic. This is the reason why the GBP/USD pair is referred to as the ‘Cable.’
The largest Player in the forex market is the Deutsche Bank
Even though Germany is a small player in the forex industry, the Deutsche Bank is the largest forex market player in the world. It has a share of almost 14.6 percent in the market.
Modern foreign Exchange Trading began in 1973
Even though forex trading has been carried out since ancient times, modern foreign exchange trading commenced in the year 1973.
Until 1908, the banks in the United States Were Allowed to Print Money
The United States Fed Reserve was established only in the year 1908. Hence, until 1908, any bank in the US was allowed to print as well as issue money on its own.
Exchange of Currency Took Place Even During the Biblical or Ancient Times
While many traders are of the impression that currency trading is relatively new, the truth is that money changing took place even during the Biblical or ancient times.
The Pound Always Dominated the Foreign Exchange Markets
Even though the USD is one of the most widely traded forex currencies today, the twentieth century was dominated mainly by the United Kingdom’s Pound. Most of the trading that took place in the year 1913 involved the UK pound (Sterling).
The forex market is immensely popular across the globe, primarily because it offers ample opportunities for earning attractive profits. It is one of those markets that never sleeps, i.e. the forex market is always operating in one or the other part of the world. As one of the largest and decentralized markets in the world, the forex market has grown by leaps and bounds in the past couple of years. Much of this growth and transformation have occurred due to the advent of technology. While, many of the above facts are already known to you, below find ten fun facts about the forex industry.
10 Fun Facts about the Forex Market
1. Forex trading has been around since ancient times. Talmudic writings or the Biblical period mentions about the first currency transaction that was carried out during the old era. Money changers would help people change their currency while deducting a specific amount as their commission.
2. By the year 1913, around half of the global forex transactions were carried out using the sterling (pound). This allowed the United Kingdom to change the shape of its capital, wherein the total foreign banking institutions operating within London went up from three (in 1860) to seventy-one by the year 1913.
3. In the forex market, traders are categorized as bulls or traders who optimistic about the market and believe that it will rise or bears, i.e. traders who are pessimistic about the market. These categories have been created by the fact that a bull strikes upwards and a bear swipes downwards.
4. The forex market is regarded as a highly liquid market globally. The market witnesses high volumes of trading, which is over 5 trillion dollars/day. Apart from this, the USD is one of the widely traded forex currencies, and it features in almost 80% of all the trades.
5. Nearly 90 percent of forex trades are speculative in nature.
6. There was a time when forex trading was carried out only by the banks and institutions that had a minimum of $40 million-$60 million of liquid funds. Today, people with limited funds at their disposal can also engage in forex trading.
7. Immediate exchange of currencies is called spot trading, since the exchange takes place “on the spot.”
8. Most of the traders are of the impression that the US is the center of all forex trading activities. However, in reality, 41 percent of all the forex transactions take place in the United Kingdom, while only 19 percent occurs in the United States. Hence, it is the London Stock Exchange, which is regarded as the hub for forex trading.
9. The forex market does not have any centralized bank. In fact, the value/price of the currencies float, and the makers of the market set the rate of exchange.
10. The forex market never experienced any crisis situation. Economic downturns or crisis offer an ideal opportunity to the traders, as they can make money in both falling and rising economic conditions.
So, those were some of the fascinating facts about the forex market that indicates that forex trading is indeed fun and profitable.
The forex market is one of the most widely traded markets around the globe. It offers ample scope for earning huge profits. However, a good number of traders are unable to make consistent profits and thus succeed n the forex market. Here, find five main reasons why traders experience failure in the forex market.
1. Lack of Forex Education:
Traders suffer losses in the forex market primarily because they lack the right amount of information and education about the manner in which the market functions. In fact, many of them don’t know how to assess the primary indicators, numbers and the ideal time for trading. When it comes to successful forex trading, traders must educate themselves about the market principles and trading techniques. In addition to this, they must also prepare themselves for all kinds of situation. Remember, all kinds of traders exit in the market, and you must be well prepared to enter and exit your trades, depending upon the market conditions and other dynamics.
2. An absence of trading Strategy:
Failure to create a proven or successful trading strategy is another reason why traders end up facing failure in the forex market. No matter what you do, it is impertinent that you design a trading strategy that complements your trading style or else you shall incur a series of losses that would force you to quit the market. In order to create the right strategy, traders must first educate themselves about the market and trading techniques. Persistence and mental balance are other factors that will help you succeed in the long run. One can always opt for demo trading to understand how the market and different currency pairs work. Once they are familiar with the currencies, traders can engage in trading sessions and focus on indicators to identify their ideal trading strategy. It is always a good idea to test your strategy to determine whether it is profitable or not. Remember, this may consume a lot of your time, but in the end, it is always better than losing a lot of your hard earned money.
3. Risking a Lot of Money with Every Trade:
Professional traders never risk a lot of their trading money when it comes to forex trading. On the contrary, traders who are either new to the market or have little experience around forex trading, often risk 10 percent or maybe more of their trading money on one trade. This can be a risky situation and usually takes your focus away from the trading procedure. As a result, traders end up incurring losses.
To earn consistent profits, traders must first understand as well as manage their risks and later focus on earning money. Ideally, you shouldn’t be trading, if there is excessive risk involved in a trade. This way you can assess your situation and take a decision accordingly.
4. Lack of Mental Preparation:
Lack of mental preparation is yet another reason why traders suffer losses in the forex market. Traders experience countless emotions when they invest their money in forex trading. Hence, it is crucial for them to be well prepared both mentally and psychologically or else they will continue to incur losses.
5. Bad Trading Day:
While, many would not like to believe it, but in reality, traders do experience bad trading days. This is one of those factors that are beyond their control. No matter how well prepared you may be, situations such as the intervention of currency, glitches in the trading platform, flash crash and natural disaster among others may go against you, resulting in severe losses. However, if you are prepared to manage your risks, then you always have the opportunity to make up for your losses.
As they say, there are no shortcuts or single formula for success, so is the case for Forex markets. No single strategy can lead you to success in the market. On the contrary mindful analysis, balanced state of mind and risk management can surely do. In the following content, we have come up with timeless strategies that can open the doors of success for you in the Forex market.
Approaching Forex Trading!
Like any other field, preparation is equally important in Forex trading. Make sure, your personal goals and temperament are correctly aligned before you take a plunge in Forex trading. Following tools comes handy in approaching forex trading.
It is an important factor as it will decide the time you invest in trading as per your temperament. Timeframe indicates whether you trade on positions exposed or not exposed to overnight risk, are you willing to stay in front of a screen for trading and analysis on a daily basis or do analysis on weekends and make weekly strategy based on that.
Once you know your timeframe it’s time to look for a method of trading. Whether you will buy support and sell resistance, buy and sell breakouts or use trading indicators. Test your methodology against various instruments and timeframes and if the success rate is above 50percent than method is giving an edge.
In Forex market certain instruments trade orderly while some other erratic ones fail to produce a win in the trade. Make sure that your trading system matches the instrument being traded.
Your Forex trading attitude!
After approach behavior of the trader is also very important for successful forex trading.
There is no other alternative of forbearance in forex trading. You will have to wait patiently for the prices to reach at your desired level as indicated by the system either for entry or exit.
Discipline is nothing but the ability to stay patient. If the price action is not as per the system indications, you will have to sit back and wait patiently rather than making second guesses.
Objectivity comes with the reliability of your methodology. If your methodology has given you reliable entry and exits over the time then you don’t need to flow with emotions and listen to the opinion of pundits of traders.
Though the market can make a more significant move than your expectations but be realistic with expected returns helps you in staying patient and disciplined.
Motivating forex trading factors!
It will be interesting to note that instrument trades as per the trades of large players and their intent. A hedge fund will not trade in a similar fashion that of a mutual fund. If you are able to judge the intent of large players for a particular instrument and align it with your system, then the success rate will increase by many folds.
Finding alignment within your system is also very helpful. Pick few currencies, stocks, and commodities and chart them in various timeframes. Then apply your methodology to find which instrument and timeframe align with your system.
Implementing a forex trading strategy!
There is nothing called hundred percent profitability in forex trading systems. Best trading systems also promise 65percent profit to loss ratio and still have 35percent chances of loss to occur. All you need to do is learn the art of managing and executing the trade in order to get maximum profitability number of times.
Last but not least; successful forex trading is all about how you control the risk factor. You have to be patient, disciplined and vigilant in order to take your trade in the right direction. Most of the traders are not able to do it in the first attempt, but constant trying surely bears sweet fruits of success.
The Bottom Line
In short, you will need to learn both the art and science of trading in order to become a successful trader. It is always better to take small losses quite often rather than delaying and waiting for significant losses to happen. According to Warren Buffet, you have to make sure that you don’t lose money in forex trading no matter what. You should learn the art of covering your losses from the profits in the future.
There is a direct connection between interest rated fixed by the central bank and prices of the currency pair in forexmarket. If a central bank increases the interest rates this means that their economy is booming and they are optimistic about future. On the other hand if banks cut down the interest rates then it simply means that economy is in bad shape and its future is skeptical. Though, it is over-simplified version of the situation but more or less decision of interest rates and price of the currency moves in a similar fashion.
Things becomes all the more complicated when a forex trader enters the scene. In case the trader anticipated hike in interest rate then he will start buying the currency well in advance and vice versa in case of cutting of interest rate.
Situation can turn into a fiasco if bank’s decision goes against trader’s anticipation as many traders will have to exit from their positions and bear heavy losses. So the central banks try to be as communicative as possible about their policies.
Central Bank’s intervention!
It is another criterion on which price of the currency depends. When currency of a particular country appreciates wildly, then central banks need to step in and take decisions in order to prevent its currency from over valuing and harming the economy in major way.
At such time central banks flood the market with currencies kept as reserve with them. High availability of currency for the people not only devalues the money but also devalues the currency.
Though such intervention of central bank is usually unannounced and surprise for the traders but it usually happens when the banks are constantly saying that their money is overvalued. Taking advantage of such situation and gauging the right time is a real challenge for the forex trader.
The majority of the volume traded in FX options is for international business purposes, meaning that businesses can hedge the risk of currency value changes. However, a growing segment of the volume traded is going toward speculation.
Double No Touch (DNT) options are the specific type of option that interests FX traders the most. These types of options are usually placed on round numbers in popular currency pairs like the EUR/USD or USD/JPY and are often targeted by extremely liquid investors. If a currency pair moves quite a bit and it nears these psychological points of interest, sometimes it surges beyond that level and then retreats away from it just as quickly. Other times, the market gets close but never quite gets there before backing away from that level.
Fear and greed!
Fear and greed have direct and interconnected effects on the market. Though it is difficult to point out that effect until it has acted out but gauging it in the present when they are actually acting is a challenge for the trader.
On one hand greed has capacity to convert a rising market into blind buying spree and on the other hand fear can lead a falling market into aall time panic zone or great depression.
It is evident that in 1920s, every trader in Wall Street did nothing but buying. They thought prices of the equity will be ever rising, no matter what. Unfortunately black Tuesday hit and greed of the traders got converted into fear taking them into deep pit of depression.
On the other hand crisis in Greece and other parts of Eurozone around 2010, made fear predominant emotion of the market and all the traders was doing was selling Euro. Though greed kicked in soon and buying spree got took currency to a level which proved to be detrimental to employment and inflation. It could only be controlled when European central banks used various market mechanics to devalue the currency.
Both planned and unplanned news has potential to move the market in either direction. You can be prepared for planned news and place your trades accordingly but unplanned events usually come as a surprise and all you can do is manage your risk effectively and minimize the negative impact of the news.
It is important to note that not all the news are market movers and it depends on the wisdom, knowledge and experience of the trader to decide which news has the potential to move the market and which does not have it.
Forex trading has emerged as a lucrative career option for young graduates, people with financial backgrounds and experienced professionals. It is mainly due to high liquidity, 24/7 schedule and easy accessibility. But Forex trading has its own set of advantages and disadvantages.
Low Cost: in forex trading the brokers make money from the spreads between forex currencies. Hence, unlike equity and other trading instruments traders do not have to take commission or brokerage into account to calculate the overhead charges of trading. It can be done at quite a low cost.
Suits varying trading styles: Since Forex trading can be done 24/7, a trader can trade as per their convenience, trading style and personal goals. It is a real help to short term traders who enter into trades for few minutes to few hours. Off time trading for particular currencies though offers low profitability but it can be easily compensated with large trading volume.
High Liquidity: Since market participants are highest in the forex market, liquidity offered by the market is also the highest when compared to any other market. You can not only file large orders efficiently without any price deviation, but the chances of price manipulation are also very less. High liquidity offers tight spread to traders and volatility of the market is almost uniform in nonstop trading sessions.
No Central Exchange: Forex market is an over the counter market, and there is no central exchange or regulatory authority which is controlling the market. This means you will not get any sudden surprises or price change which often happens in the equity market. Apart from that, there is no insider trading in Forex market as there is no insider in the market. Deregulation is also responsible for low-cost trading and the ability of the trader to take short positions.
Volatility is a trader’s friend: If a forex trader has placed its trades wisely then, he can make huge profits from high price volatility often displayed by major currencies.
Variety of pairs to trade:In Forex market, a trader gets to choose from 28 major currency pairs involving eight significant currencies of the world. Traders can easily choose as per their timeframes, market volatility, and economic development.
Low capital requirement: Unlike other markets such as equity, future, and options, you can start trading at a very low capital in forex market. It is mainly because of tight spreads in terms of PIP and margin trading with highleverage factor.
Ease of trading: You will get n numbers of forex technical indicators for short-term trading and fundamental analysis theories for long-term trading. Depending on knowledge and experience a trader can easily get started with forex trading.
Lack of transparency: Since it is a deregulated market, it is mainly controlled by the brokers. A trader may not get a transparent view of the market, best prices, full control over his trade or price quoted be limited to a number of brokers selected by him.
High risk, high leverage: on one hand leverage as high as 50:1 offers exponential profit-making opportunity, at the same time loss incurred by the trader can also be magnified with the same multiple.
Self-directed learning: Unlike equity trading where portfolio managers, relationship managers, and trade advisors are there to help, in forex trading at the most time you have to learn by yourself. Such expert opinion is usually not available. A forex trader usually has to self-learn constantly throughout the trading career. Many early traders leave forex trading mainly due to heavy losses and lack of knowledge and guidance during trading.
High volatility:Since there is no control of macroeconomics and geopolitical developments on forex market, traders often incur huge losses due to market volatility. In equity trading, you have an option to go to company management or regulatory authorities to initiate changes but it is sad that forex trader has nowhere to go.
The Bottom Line!
Though forex trading seems to be a lucrative and easy money making a career, but it is not the case. You require a lot of hard work, perseverance, constant learning, ability to manage risk and a robust plan of action and lot of patience in order to get success in the forex market.
Buying and selling financial instruments in the Forex and stock markets seems at first glance a great way to make money. However, as in any trade, experience is required to make these actions profitable.
Not diversifying among the different financial instruments:
Just because an instrument has worked well a couple of times does not mean that you cantest it with others. Do not get stuck, find the key information you need about spreads, premiums, lot sizes and trading hours. Explore and check various financial products such as Forex, commodities, indices, stocks, bonds etc. For example, CFDs allow you to maximize the benefit by requiring a minimum investment which allows a more efficient management of capital among other advantages.
Lack of practice and training:
To start with the right foot, it is essential to know the Forex trading, CFDs or the financial instrument that most interests you, it is important to have the best training materials, where you can learn and know everything related to financial markets and operations. stock exchanges. The training will help you expand your horizons while mastering your financial skills.
Having unrealistic expectations:
We must be aware that money does not grow overnight. We need to be patient to allow time for investments to grow, to acquire financial education and to be able to see the opportunities that are presented to us.
Luck is a residual factor that only contributes gains in specific moments, but not in a systematic and constant way. To invest with an open attitude, you must remember that there are no definitive rules. However, it is good to have a range of investment strategies that adapt to your needs and that lead you to enjoy trading.
Operating without a plan:
No successful goal has been fulfilled without a plan behind. Even if you have experience in the markets, this is not enough to place a blind operation. When there are sudden changes in the markets, the stock plan will help you keep your objectives clear and prevent us from making hasty decisions.
Searching for the perfect method:
In trading the word perfection does not exist, the market is volatile and can cause that the investments made do not bring the expected benefits. If you do not have a plan and an attitude flexible enough to adapt to the needs of the environment, you can miss important opportunities.
Letting emotions drive you:
Market research must be done considering all the factors that can affect it positively or negatively. Avoid including your feelings in making decisions, operations can be affected by stress, fear, joy, greed, stress or anger.
Not choosing the right broker and platform:
Choosing a broker because it is cheap and not because of the security and experience it provides, is one of the most common mistakes of the beginning traders. It considers the regulation, the available financial instruments, the commissions, the possibility of operating from a computer, tablet, mobile and web trading, seeks to keep customer funds segregated for security and have a wide range of automated trading platforms compatible with EA and MQL5.
Opting for a regulated broker is a great investment in the short and long term, a correct choice will help you operate with confidence since you will have a wide range of financial instruments as well as personalized attention.