When traders make mistakes again and again, trading becomes difficult for them. They also become depressed because of facing failure continuously. But, this is natural that the newcomers will face problems because of their weak skills and lack of proper cognition. Mostly seen that 92% to 95% of people are in the Forex field, lost their account balance because of weak risk management skills. There are so many problems that have been faced by the fresher. The five crucial problems are being discussed here.
In the beginning level, traders make decisions based on emotions which causes a dangerous loss for them. Fresher cannot avoid the emotional factors and unconsciously influenced by these. In day trading, as people are required to make quick moves, they become under the lots of pressure and make mistakes. If a person maintains a proper plan, and follows this accurately, he or she will able to avoid the psychological problems and able to trade logically. When you are aware of the buy and sell signals, you will not be driven by the emotional factors which will help you to get rewards from the Forex field.
Excessive Trading and Less Trading
Some investors do 100 trades per day which is represented their trading obsession. A person should not do more trade within a short time, this can increase the chance of losses. On the other hand, some investors do not want to invest their money and do less trading which can hinder the process of increasing money.
People should focus on quality, not on quantity. The experts do trade which can provide good returns and go with their strategy. There is no bad or good trade, but a person has to understand which one will be properly regulated by him or her.
Weak Risk Management
Most of the time, the newcomers do not emphasize the process of learning about risk management, as they do not recognize the significance of this skill. If a person can able to reduce the cost and increase the income, he or she will able to become rich in the Forex field. This is not that an investor has to always low risk and ignore the leverage for regulating the business properly. People should take leverage but they should consider their necessity properly. Based on the income, a businessman need to decide how much loss he or she afford for a particular position.
Some of you might be taking trades with low end platform. But this can reduce your performance to a great extent. Use Rakuten trade from the start so that you can take decision by using the most advanced tools.
Over-confident plays the role of poison in the trading career of the businessmen. When one plan works better and provides good results, the fresher thinks that this will work better in the other trades. As a consequence, they use this repeatedly and countenance huge losses. On the other hand, when beginners see some winning streak instantly think that the other positions will also provide great results. Because of their over-confident, they lose their all profits what they have made.
Not Being Aware of News Releases
Based on the important news events, the businessmen are required to speculate the value correction of the financial instruments. Remember that trade with the news is very difficult and risky. If a person take a decision based on fake news, he or she might face lots of loss. People can forecast the consolidation period and market volatility depending on the significant political and financial news.
Not Keeping a Business Journal
If the investors keep the record of his past business activities, he or she will able to get the chance of learning from the previous errors. This will represent them with a clear scenario of the past activities and allow them to find out the solutions to the errors.