Forex trading, just like any other activity includes tons of difficulties.
1. You have too big expectations.
I have said that a million of times (at least it feels like it) – as a beginner we all deal with the same problem – we want to have the best performance right off the start. But that is not really possible is it? The beginning period is for making mistakes and seeing losses or not-so-big profits. From our high expectations comes one of the biggest problems of forex trading – we abandon trading altogether seeing losses and/or make rash decision.
The only thing you need you understand at the very beginning – you are going to be disappointed with the performance of your trades. But with time your profits are going to get bigger and better.
The main difficulty here is to manage your expectations. How are you going to do that when you have already tuned to the biggest earnings, right? Well, my advice is not to think about it at all. Just keep on trading and let it be as it will be.
2. You get confused.
So many possibilities! So many assets! So many currency couples! Which one of them is going to perform better? Which one of them is going to bring you real success? Which piece of acquired knowledge you need to implement? Well, of these questions are bound to get you into the strongest confusion possible.
What do you do? The main problem here is that most of the time forex theory and forex practice are two different things. At the beginning it is not only difficult to choose an asset, but to choose a trading strategy and that particular knowledge that you have somewhere at the back of your mind.
That is where trading signals providers come to mind. You can follow performance of the asset via the signals they provide and learn something about each instrument. Theory and practice rolled into one.
3. You have no confidence.
Oh, confident trading! If only you were closer to each and every one of us! How would we be grateful!
But unfortunately for many of us gaining confidence has proved to be more difficult that it should be. In order to overcome this one, you need to just trade every day. The more you are exposed to this situation that proves to be more difficult than you signed up for, the faster you are going to recover from the stun you are getting with every trade.
Try to test out different trading strategies and play with you daily lifestyle a little bit. Here, your every movement counts. It is rather likely that today you are feeling luckier and more confident than tomorrow just because you are not going to have as much sleep tonight because you are going to binge watch your favorite series on Netflix.
4. You keep on making the same mistakes.
That might be difficult to see, but your trading fails may all have one common thing – just one common feature that leads every one of them to fail. Too wide of a stop loss, to little or too much pips, currency that was failing from the beginning.
That is why you need to keep trading journal or a special trading app that is going to point out all of your fails and mistakes. That is how you are going to be able to break the loop of mistakes.
5. You panic.
I know, I know. We all panic. And that leads us to making mistakes in the past. Try relaxing. If you are a beginner it is doubtful that you are going to lose a lot of money right off the start. That is, of course, if you have a good broker on your hands. And you need to lose to see what actions lead to this and feel the markets.
Do not panic. That is just going to make the process more difficult for you in the future. It is ok. Try and reach out to your fellow traders. They will surely have words of encouragement.
So, these are the main difficulties of trading in the beginning of the way. which one of these did you stumble upon? Start the conversation in the comments!
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