Success in forex is lower than 5 per cent. This means about 95 per cent of traders fail. They lose their capital in about a year due to extremely common mistakes. The loss is definitely avoidable; however, year after year more and more people lose money in the forex market. It comes down to forex training. Improper training leads to mistakes that do not have to happen. The following is going to assess some of the errors that are made in the hopes you take them to heart and learn to avoid them.
Forex Training Failure to Understand the Market
You can gain skills very easily in trading. It is one of the easiest parts of forex training. The skills, knowledge, and tools are all there. Yet, if you are unable to use these three concepts in the right context then you will not generate profits. Instead you will consistently lose to the market. The market signals you see in news and technical charts should not be ignored. Worse yet you do not want to go hunting for signals and imagine them to be there. You should always have confirmation of the signals before you act. Is there one peak before a slight reversal in trend? Should you act on that one peak? No, it is better to see two or three peaks before you act on a reversal of trend. Why? Because when you wait for that second or third peak then you have confirmation that a reversal is going to happen. A single peak might reverse, you might have acted on it for profit; however, if it was a fake reverse and the current trend continued you just lost big. Forex training is about getting the better profit and not focusing on what could be. Yes, you could be a millionaire putting all your money in on one trade and going with one peak for a reverse trend. More likely you end up like the other 95 per cent that thought the same and lose everything.
Hobbies Need to Give Pleasure like Forex Training
Do you enjoy forex training? If you are bored with everything you read about it, if you find it hard to concentrate, if you jump in after two chapters and never train again then forex is not for you. You have to derive pleasure from your hobby or second job. For those that make forex a career you need to have pleasure in it or it makes it too difficult to continue.
One of the biggest mistakes is goal making. Goals are wonderful to have, but are they realistic or unrealistic goals? If you have unrealistic goals you will never reach them.
The above forex training mistakes are for your benefit. If you can remember these mistakes, take them to heart, and apply them you will be more successful. There are losses no matter how well you read the market because the forex market is not controlled by anyone, least of all you. Take your losses, let them go and learn from the mistake such as missing an important piece of news.