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| Oct 30, 2017 11:21 am |
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The most common bad habits of the traders |
Sandy Smith
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The human beings are very complex by nature. No can truly understand how the human brain works. The scientist has spent many decades in learning the functions of human psychology but all of them have failed to give a clear explanation how our mind works. In the world of finance there some smart traders making tons of money in every single year. Forex market is a vast market where more than 4.5 trillion dollars is traded all over the world. Now a day’s normal people like us can trade the live asset and make a profit by using the price fluctuations of the currency pairs. Though this market offers a high level of profit to the traders yet the number of losing traders is extremely high. Due to the nature of human greed, traders often blow their entire trading account by taking a huge risk. In the Forex market, you have to trade based on your logic and analytical data. If you listen to your emotion then you just wasting your money and time. Today we will discuss some of the bad habits of the currency traders in this industry.
Greedy mind
Accessing the Forex market is extremely easy but controlling the green is really very difficult. Expert traders often consider greed as the number one element to take a big risk. Since the traders have access to high leverage account they can easily place big lot size with a small of trading capital. Majority of rookie traders gets carried away by seeing the price movement of the live assets and start increasing their risk in every single trade. After facing few big winners they realize that extreme profit factors of this market. This is when they start taking big risks in each trade. They simply use their emotion and bet on the market for big winners. At times this aggressive approach will you pay you but considering the long term scenario this nothing but a suicide attempt in the Forex market.
Execution of too many trades
Trading is all about precision. You need to trade the high-quality signals on your trading platform. If you start trading the lower time frame then you can place many trades in a single day. But have ever considered the quality of factor of that lower time frame trading signals. The professional traders are more concern about their quality rather than quantity. Instead of placing too many trades you need to look for a single high-quality trading signal. The new traders might face some difficulty in finding the best trade setup but it’s very normal. The starting of something new is always very challenging. You need to realize the fact that this market is all about probability. You need to do the simple math of probability and aim for good risk-reward trade setup. Always remember that quality trades will always help you to gain confidence even if you lose money. Most importantly you will be able to learn how to trade this market properly. So contrite on the quality of your trading signals rather than quantity.
Listening to other experts
No one truly knows who is a successful trader. The only way to ensure a person success is by assessing the trader’s portfolio. Since the success rate is only 5% its very immature act to believe what all traders are saying on the internet. You need to use your intellect to develop your trading system. Never buy any trading signal or EAs from the internet since no one knows what will happen to the price movement of a certain asset. Instead of paying attention to other traders you need to be concern about your depth of knowledge. Ask yourself whether you truly know how to trade this market. If your answer NO then starts learning from the scratch. If you feel confused do some online research and clear your quires. Always believe in yourself and only then you will succeed in this section. 
Private Reply to Sandy Smith (new win) |
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