10 Reason Why we fail in Forex Trading

1 GREED

When greed dominates, it will make us lose self-consideration

Greedy trader always set big size of lots for making a big profit.
As a result? If you are lucky, maybe you will make a big profit.
But, if otherwise, of course your account Margin Call.

Greedy trader dont want to close his trade even he’s already in profit.
It is because they want to earn big profit and make more money.

Remember in Market trading there is lots of manipulator.

2 – Risk To Reward Ratio Too Small

In each entry,
make sure that the profit rate is at least equivalent to or double the loss
that will occur if the entry is affected by stop loss.

In that way, even if the loss is 2 times in a row
the 3rd profit must be used to cover the loss from the previous 2 positions.

For example, the 1st trade hit stop loss,
the 2nd trade profit must be recover the first trade loss
and if 2nd also loss, the 3rd trade must be profit to cover the 1st and 2nd

By using the appropriate risk to reward ratio, you have the advantage of profit in the long run.

3 – No Stop Loss

There is no certainty in Forex trading and there are many factors
that may cause the market to suddenly change direction.

So do not be so confident that there is no stop loss,
if the floating is large or the margin call will be difficult later, right?

Make sure that every entry posted has a new stop loss so the soul is calmer during trading.
That why when using Forex Line Indicator always set Stop loss after make an entry.
When there is no potential reversal after the entry then can set TP = Double the SL

If you loss you can apply risk reward ratio to recover your loss..
if loss 20pips then 2nd trade you can set TP for 20pips as recover trade

4 – Not Set Take Profit Value

An entry without take profit
is like riding in a car without any purpose.

You drive all day without a definite direction and destination.
That will just waste of the car oil if driving like that

It is important for us to set where we want to Take Profit when trading forex
because this can indirectly help us think fully about where to place a pending order.

By using forex line the Take profit is set based on SL size = double the SL
set take profit at resistant if entry buy from support or vice versa

5 – Failing In Money Management

This is one of the worst mistakes that many traders make.
The symptoms can be seen when the trader trading many layers for one position.

There may be techniques that use layers for averaging purposes,
but if you make a mistake and the entry is not reversed as expected,
there is a possibility that the capital in the account is not able to cover the position
you put and result in loss or worse, margin call.

When trading using the right money management,
we do not have to chase after the market & rush to trade.

6 – Depends on Fate

If you use the “hope” technique while trading,
you are actually gambling, and not Forex trading.

Avoid spending too much time looking at charts
if you are busy and not sure what the real market trend is.

7 – Not Focusing On One Technique

This is another common problem of traders out there.
Too much trading using different techniques in forex trading.
In fact, all techniques have their own pros & cons.

Take the time to identify the strengths and weaknesses of the technique you are using.
That way, you will know when is the right time for entry or stay aside only.

Forex Line EA breakout and Arrow mode is trading robot that need right pair
to trade or stay aside

8 – Hesitant for Entry

If you are hesitant to enter, it is better to stay aside first.
Don’t be afraid of losing because there is no entry.
It’s sad if you are in a hurry and the entry is hit by SL, right?

Wait until you are really sure there is a setup based on the rules from
the technique you learned then entry.

If the setup is valid based on the technique you use, do not look at it.
Entry with full confidence.Importantly, take care of MM and set the risk
for that entry to the risk value we can accept.

9 – Impatient

Many traders are also impatient and can’t wait until
the setup is completely valid before making an entry.

Try to wait for the Candlestick to finish first
and place the entry after the new candlestick has started,
even if there is a valid setup.

Do not try to be an astrologer during this Forex trade, it will be bad later.

10 – Wrong Pair Selection

There are many pairs you can choose from Meta Trader.
For newbies, I suggest you focus first on major pairs such as
EUR / USD and also GBP / USD.

When you trade with an exotic pair, the spread is large
and may cause problems for you if the technique used is a scalping technique.

Register under Forex Line IB and get Free
Forex Line Indicator + EA (Referral code 29834)
https://icmarkets.com/?camp=29834 (Code – 29834)

Be the first to comment

Leave a comment

Open