It’s not difficult to find out why forex traders lose. After reading study materials available over the web, they tend to develop this notion that foreign exchange trading is ‘as easy as taking candy from a baby.’ They get into the trade, commit big time blunders and incur substantial losses. Oblivious of the fact that the modes they used were wrong they think luck did not favour them and hence lamely ask are there any successful forex traders out there?
Well there are plenty and the reason why they are successful is because they avoid these below mentioned mistakes.
Skip asking are there any successful forex traders and avoid these common gaffes.
Conducting trades with fancy and unreliable trading tools
Many newbie traders tend to believe that indicators are the key to forex success. It is going to help them understand Price Movements better and also hence they solely concentrate on conducting their trades using these oscillators.
Experts state that knowing about forex fundaments and ability to read a naked Price Movement in comparison to use of oscillators; goes uncontested. Pure forex dynamics which take place on charts remain unknown to them and hence they place their orders to data which at times is often unreliable.
One who is successful in forex will always rely on actual Price Action as it tells them what will transpire in times ahead.
Placing orders just after press release
The second slip up which traders asking are there any successful forex traders in the market is placing their orders just after release of a news event.
Some headline hits the market and you think of it as an easy hop on the board for making some Pips. You don’t plan anything, just jump in with both feet.
Pen it down somewhere; when there is a press release, you should never place orders. These releases result in a whipsaw like action as liquidity is very less. A trade which has a potential profit bringing opportunity can quickly turn into loss resulting prospect.
One who is a successful forex trader will always wait for the market to subside in its volatility and for definite market trend developments. Once that has happened then they place they orders.
Trading without a stop loss or moving your stop loss orders in
Traders who ask are there any successful forex traders in forex-dom constantly are seen either trading without a stop loss plan or moving their stop loss orders to avoid getting stopped out. How to put it- both are a recipe for disaster!
Employing stop loss traders forms an integral part of a meticulous forex trading plan. It incorporates particular market analysis and research work. Without stop loss, your trading strategy is invalidated.
Similarly moving your stop loss is just as fatal as the aforementioned. This showcases lack of trading discipline and also opens a one way door to losses. If you do have to move, say due to some market situation, move it in the direction of profits.
Being oblivious to data events and press release
Many traders place orders without any sizeable market research work. For example - if your currency pair is USD NZD, you have to keep a close watch on how New Zealand currency balance moves.
The nature of the market is so volatile that in just a few short hours, it can experience significant fluctuations. Along with this there are numerous other factors which govern how the marker operates.
It is not possible to keep a check on everything, but the need of the hour is to know facts which are related to your trade or may affect your trading.
The top exponents always maintain an event calendar and host all the different occurrences taking place weekly as well as monthly basis. They will simply make it a part of their trading habit.
For traders who ask-“are there any successful forex traders” these are the common blunders which they should avoid at all costs. Just remember Forex trading gives no margin for error and hence once should get into the market with a proper trading strategy.