Making money in the trading industry is very hard. Those who think this is an easy task and anyone can make a huge profit from this market is making a big mistake. Trading is not like gambling. Here you will have to think about the risk factors. In the eyes of the trained professional traders in Singapore, trading is nothing but one of the smartest investment business in the world. The recent update in the tech industry has made trading extremely easy. Brokers like Saxo is offering a fast-paced trading environment with high leverage account. But even after having all the facilities, why the novice traders are still losing money. Let’s explore the key reason for losing money in the Forex market.
Not understanding the market trend
Finding the perfect trend is very important for your success. The new investors might think trading has nothing to do with the long-term market trend. But this is completely wrong. All the institutional traders at Singapore are making money just placing trades with the trend. There is a saying in Forex marker, Trend if your friend. If you want to stay in this game you must learn the perfect way to trade the market trend. Trend trading strategy is not all hard. Just by using the simple trend line tools, you can easily make a huge profit in this industry. You don’t have to become a rocket scientist to develop your skills as a trader. Just devote yourself and learn the basics to deal with this market.
Taking too much risk
Risk management is the most important thing you need to learn as a trader. Those who place random trades without assessing the risk factors are the ultimate losers of this industry. Trading CFDs is an art and there is nothing you can do to beat the market. You have to synchronize your strategy with the dynamic market. no matter how well you understand this market, you should always limit your risk. Those who are following indicator based trading system are always losing money since they don’t have a clear picture of the market. They overload their chart by messing things with indicators and EAs. You don’t have to make things confusing to find the best trades. Just use the simple rule of money management to save your investment.
Following the experts
Some of you might think the experts have Holy Grail in this industry. But if you blindly follow the expert traders it won’t take much time to blow your account. You have to understand the successful traders are also losing money. In fact, they can have more than 10 losing trades. So are ready to embrace ten consecutive losing trades? Are you trading with such low risk? If the answer is YES you are still on the safe side. But being a human being it’s really hard to follow other people blindly. Majority of the rookie traders places big lot size trade based on their assumption to make things better. But at the end of the day, they all lose a significant portion of their investment.
Lack of discipline
Last but not the least, you must be a disciplined trader to earn a decent profit from this market. The new traders are always thinking they have the perfect skill set and they can change their lives within a blink of an eye. Trading is just like any other business in the world. You can’t lead your dream life unless you become a disciplined trader. Even after losing few trades, you should stick to your trading strategy. But sadly the novice traders break their own rules to recover the loss. Though they might get lucky at times most of the time they lose a significant portion of their investment. In order to become a disciplined trader, you should develop a strong mentality. Stable mindset will help you to deal with the losing trades in a very organized way.