Forex world

November 14, 2022

8 Problems Of Forex Traders

 These are common problems or mistakes of Forex Traders, it may be a problem that many people realize themselves but the fix is not possible, or not easy. In this article, let's see if there are any more suggestions.


1. DEPOSIT IS ALL LOST TRANSACTIONS, REPEAT MANY TIMES, NO IMPROVEMENT:

This is a common problem among new traders, or not enough time to experience, and it is also often seen in traders with a temperamental, hasty, stubborn personality, or wants to "win - lose" with the market. (want to immediately take revenge on the market after each loss). The easiest solution to fix it is to STOP DEPOSIT TO THE ACCOUNT. Take a step back to calm down, and review the whole thing, from there to find out the cause and how to fix it to achieve better results next time.

2. ENTER ORDERS TOO LARGE OR INTO FULL ACCOUNT:
I have met traders who every time they deposit money, they can trade their full account in 1 trading order. Of course, sometimes the account will increase several times, even dozens of times after just a few consecutive winning orders. However, meeting a losing order will be a matter of EARLY OR LATE. We can't be lucky to win continuously (I use the word "luck", because even if there is a divine trading system, it still cannot win 100% of the time). Therefore, with the view that Forex is a long-term job, we need a risk management plan to ensure the safety of the account. And the solution is that before entering the order, think about how it would feel if you lost your whole lot, that will help the trader to gradually reduce the excessive excitement, from which it will gradually overcome.

3. INCREDIBLE FURTHER ORDER:
This is a major drawback and is common among many traders. Although initially entering the order was reasonable and in accordance with the principles set out, but after watching the price move, there were spontaneous emotions, leading to the replenishment of the order. For traders with great greed, they will add more orders when the old orders are profitable and the price is in the right direction, they add more orders in the same direction to get more profits. As for the stubborn trader, they will add more orders when the old order is losing and the price goes in the opposite direction, they add more orders to average the price to have a better order point than the original. The alarming thing is that when adding orders, the emotional balance will be disrupted, leading to unwise and objective decisions, like the original. And the result often leads to total account losses.
The solution is to calculate carefully before entering the order, then place the trade order, set the reasonable take profit and stop loss points, then don't follow and let the order automatically process. When you do NOT regularly watch the market movements, it will help reduce the emotions that arise, and will gradually overcome this drawback.


4. CANNOT CONTROL YOURSELF:
This is not an uncommon case, especially for traders who are falling into a psychological crisis due to losses. When that happens, they will do things out of control, such as: Depositing money into the account continuously even though it is a loss, trading that breaks the rules, even trading the opposite of what was analyzed. He became panicky and lost his sanity. And they only really realized they lost control when they lost all their capital.
The solution to this situation is to temporarily leave the market for a while, to calm down to think and regain composure, then consider coming back.

5. UNSTABLE TRADING PERFORMANCE:
For any forex trader, there will come a period when their trading performance will be unstable, even though the trading system has been thoroughly tested, and they trade well for a while. However, it is a fact that we must admit that the forex market will have periods of change (temporary or long-term), so we need to constantly adapt to change. More importantly, we have to prepare mentally as well as solutions for that.

6. FEELING DEADLY AND NO HOPE WITH FOREX:
This usually happens after a trader has gone through a trading process that has not yielded positive results. At that time, they will feel depressed and have no hope with forex, which is an inevitable consequence. If we are in this situation, we need to seriously look at everything, from the reason we entered the forex market, to the process of learning and experiencing it, and the statistics of trading results. .. Then we will have an accurate analysis and assessment for the whole process, to get solutions to improve the results, even to make a decision to continue trading forex or to stop.

7. EVERY TIME SHOW THE ACCOUNT OUT, IT'S A LOSE AGAIN:
Many people consider it to be a spiritual element. However, when analyzed carefully from a psychological perspective, we will see more clearly. When you show your account to others, it is usually when the account has good growth. So showing a winning trading account means that you are overconfident (and it will gradually turn into complacency), and that mentality will harm your forex trading.

8. NO SPECIFIC TRADE PLAN AND ROAD:
This is a very common problem among traders. It is obvious that traders trade with the aim of making profits. However, not many people make long-term plans and divide each specific period, to have a clear trading route. When we consider Forex as a long-term business, we should live with it, detailed planning is necessary, it helps us to know where we are on the way.

Best regards,

CaPhiLe.Com

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