- Failure to formulate a detailed trading plan before the transaction is executed: There is no careful and detailed action plan before the transaction, and the trader does not have a clear and specific information on when and where to exit the transaction, how much the transaction can lose or how much profit can be made. awareness.
- Improper selection of trading varieties or capital management: To be successful in the foreign exchange market does not require huge investment. Data shows that traders with a capital account of less than $5,000 are more likely to succeed in foreign exchange transactions, but the customer group with account funds of more than $50,000 is extremely easy to fail in desperate transactions.
- Expectations are too high and rushing too fast: If traders start out expecting to get off the ground with a few very successful trades, often the harsh reality will smash their wishes. In all fields of study, success requires continuous hard work, perseverance and talent, and Forex trading is no exception.
- No stop-loss measures: The use of stop-loss measures in foreign exchange transactions can ensure that investors can clearly control the risk limit of funds in a specific transaction and confirm the loss status of the transaction. Remember, there is no perfect way to trade Forex.
- Lack of patience and principle: Failed trades have the same characteristics. The importance of patience and principle to successful trading has almost become a commonplace in foreign exchange trading. Don’t trade for trade’s sake or for change’s sake – wait patiently for the perfect trading opportunity to come, act prudently and seize the opportunity to profit – the market is the market and no one can replace the market or force it.
Why does Forex trading fail?
