After completing the beginner’s level, the Forex traders think they are the master of this market. They don’t understand the fact, the intermediate stage is a very risky phase. The majority of the big losing trades happens on this stage. If you analyze the intermediate trader’s history, you notice that they are losing a huge amount of money and blowing up the trading account randomly. Losing money is very common but there some major mistakes that can definitely cost your investment. These mistakes are known as a deadly mistake and if you want to save yourself from the losing orders, you have to avoid these mistakes at any cost. Let’s learn about the deadly mistakes in the Forex trading business.
Emotions are the key factors for which the retail traders are losing money. Most of the time it’s hard to make a consistent profit. However, the novice traders don’t really know how to deal with the emotions. To deal with your emotions, you have to develop the ability to do the perfect market analysis. Once you start trading the market with some major technique, you won’t be able to trade with emotions. However, some of the retail traders might have troubling to keep their emotions in control after losing some few trades. For them, it’s better to take a small break as it will help them to regain control over their emotions.
Trading the market with EAs or Expert Advisor might be very profitable but if you consider it as a permanent solution, you will blow up the trading account. No one in the options trading industry has managed to make a profit regularly by using automated trading software. If this was so easy, people would have bought these tools and started making millions. Instead of thinking of such EAs, learn about the support and resistance level trading strategy. Though this might take some it is the only way to make some serious profit.
You may be the richest person in Hong Kong but still, you don’t have the assurance of making a profit. Similarly, those who are trading with a small account don’t know whether the trade will hit the take profit stop loss. Most of the time the traders become restless after losing some of the trades. Due to the access to the high leverage trading account, they start placing big volumes orders. The big volume trades might recover the losses but if you consider it as your recovery factor, you can lose your entire investment. Never trade with high leverage as it significantly increases the risk exposure in trading. Stick to the conservative method and you will eventually become a profitable trader.
Buying paid signals from the websites is a big mistake. You might even get scammed. If they are so profitable whey they are selling signals to the retail traders and working so hard to promote their brand. They could have made millions just by using the trading strategy. Since they are failing to make money, they are using the Forex media sector. However, there are some professionals who really want to make some extra income by selling signals. But still, you should not use the paid signals as it makes you dependent on other people.
Those who ignore the losing trades never learn anything new. Losing trades should be considered as your learning tool. By assessing the trade signals and the other important parameters you can easily find the bugs in your strategy. Once you have identified the bugs, try to fix the issues. Using this simple technique is an excellent way to become a profitable trader. Never ignore the losing trades as it gives you learning opportunities. And if you do so, you are going to be the next loser in the Forex market.