Currency trading online has been known as exchange rates or currencies online is one of the most lucrative Internet business by the number of people who will join the company. Furthermore, market liquidity make it more attractive to many new places. It is marketed in the spring of 2008, precisely in January, the daily trading volume of the currency every day, more than $ 2 trillion, this figure is so large in comparison to the daily trading volume of shares of the Stock New York Stock Exchange, compared with no more than $ 25 billion dollars.
The potential to make it big in the forex market is huge, due to market liquidity as mentioned above, and the fact that few people know about the Forex market. These few traders do all the time a lot of benefits in the market. Lately, there is an explosion in the number of traders entering the forex market. Due to the conscience of the people was growing and cotton has been removed because their eyes. But the risky nature of the forex market quickly begins to show its ugly head when people come in the money market spiders. So many marketers have discovered that they lost early in the market all of them joined their investments and repressed. Some of those who have lost everything, do not move in the market. Even said in a report that almost 95 percent of traders lose market.
Is this negative trend, driven me to write this article to show clearly the main reason why most traders lose. The seven main reasons is so well were worried a guide for traders and victims of these costly mistakes. Moving quickly to the seven main reasons why traders are losers.
Reason # 1: Lack of proper training, some traders only visit one or two seminars, which lasted a day or two. And only after demo trading for two weeks or more before going to the negotiation / Real live. A funny thing with this group of people is starting to thousands of dollars a day who want to start trading. You forgot the fact that it took four or five years before they can receive their area of ??interest of their degrees and minutes reserve. In short, the lack of proper training induces both education and external training, so often reflects the reason that some people who are not in the Forex market.
Reason # 2: Ambition and greed of the traders are in the ambitions and greedy. These sets of traders want to make a million overnight stays. Instead of effective principles of risk management not to negotiate with more than 2-3 percent of their money, these traders make their huge profits of a trade. Therefore, inflated its risk management and entered the market with what they can not afford to lose, and if the trend is against them, often found in a debilitating and eventually lose the market.
Reason # 3: Lack of discipline to follow the strategy developed for the traders themselves. If there is something that can quickly ruin any forex trader is the lack of discipline. If traders do not have the right culture and discipline to the strategy they developed to make big pips follow this operator will continue after the shadows and running in no time in a period of time every loose his / her investment.
Reason # 4: Lack of a good strategy and a methodology to comply with the traders to enter and exit. There is no denying the fact that some traders still believe that the Forex market is similar to the casino and therefore, you can always play to win money in the Forex market. Later, she lost the ball before and somersault in the market. You have to walk into the dealership for an effective strategy to help develop and exit the market. Respect, take the stop-loss, leakage loss, benefits and pivot points in any strategy must be included to make a successful forex trader, the best time to determine trade and currency trading is often overlooked by some retailers and themselves affect their performance.
Reason # 5: The dependence on one or two indicators, the other common mistakes that traders rely too much on one or two indicators, which may not be sufficient to predict different market conditions. Some traders make their money in as they lose all their money. It's good to use the indicators, so that we are able to determine when to act or not, it is also desirable that the combination of fundamental analysis and technical factors to consider when the market.
Reason # 6: Bad money and risk management practices: Most traders due to greed often with more than 20% of capital in the economy, which are sometimes called news trading investments. And when the news turns against them, they are often left with nothing. A case this is a dealer who had $ 1,000 dollars in the forex trading account and decided $ 800 for trade to take. The trade turned against him and said that the margin - visit the following link to understand.
Reason # 7: Bad broker or platform, platform selection factors must be taken into account as one that is the extent of the Forex broker to execute the command of the operator immediately, some platforms are so poorly designed that all these factors can be treated well. If the operator uses a brokerage platform slow reaction, it is possible that if a provider's instructions are to sell or buy a currency trade turn against the dealer before executing a command. This type of situation is not uncommon, so bad and not a good broker-dealer up - day elected standard platform.
After crossing the seven reasons why some traders, and continues to fail, it is advisable to take note of this, and make rapid self-test to see how well you can adjust and fix yourself. If you so that you can check more information about the exchange, the above points are why not visit the link below. While you improve your forex trading skills.