Everyone who decides to engage in stock trading makes plans for the future and dreams of how he will spend the huge money received on Forex.
But as a rule, the reality is not so rosy and instead of the expected profits, the novice trader loses his money.
Why does this happen, what are the main reasons for failures in Forex and how to prevent them from appearing?
There are several reasons why beginners lose money immediately upon entering the foreign exchange market, and as a rule they are quite standard:
The first reason is Impatience
For many years trading on Forex, you never cease to be surprised at how impatient most of the novice traders are:
Moreover, the measure of impatience increases with decreasing age, the younger the applicant for millionaires, the more he risks and the faster he wants to get a result.
Some of them almost immediately deposit an amount with three zeros into a real account and start trading using scalping. How such a trade ends is known to all.
I myself did not escape a similar fate, but my first losses were only tens of dollars, so this did not scare me away from engaging in stock trading.
Trading cannot be learned in a couple of days, so why immediately risk large sums when you can first prove your skills on cent accounts , and only then move on to normal volumes.
Failures should not be the reason why you should give up, as statistics show, most of those who have stayed on the market for more than a year come out of losses and begin to earn steadily.
The second reason is a lack of desire to learn
It is almost impossible to learn how to trade forex from experience alone. Books written by experienced traders and various courses will significantly reduce the time for learning.
For those who do not know how and do not want to learn, only a miracle can help, and it happens quite rarely even in such a business as stock trading.
The third reason – Warehouse of character
There is a category of people who simply cannot control their emotions, quickly give in to excitement and make mistakes under the influence of mood.
If you belong to this category, then no matter how insulting it is, admit that trading is not yours and better choose another occupation. It’s like in business, someone succeeds in any undertaking, and someone burns out in vain in the next business.
The fourth reason – The will of chance
You are simply, tritely unlucky and, it would seem, a 100% investment begins to bring losses. This happens to everyone and there’s nothing you can do about it. It remains only to take a break from work, wait out a difficult situation and start working with renewed vigor.