Failing is an essential part of any process.
And even though it is, we still have the inner need to escape fails at any cost. And it trading that statement is even more true as failing for us means losing out own money. And that is not something that is easy to make your peace with, right?
So, why do we fail is an essential question. And there are several reasons for that to happen.Without further ado, here are reason why we may be failing in forex trading.
- We are trying to trade without any plan.
Trading plan is extremely important to us. Think of it as being just as important to us as a cookbook to a professional chef. Will a chef try and cook his meals without a cookbook? I don’t think so.If you are trading forex or any other type of asset you need to have a plan the includes everything – from expected percentage return to risk assessment and even what to do in crisis situations. Everything needs to be documented, otherwise you are just going to lose track of your actions.
- We are refusing to adapt to the markets.
New technologies are emerging fast. And markets are no exception towards the ever-changing techno-world around us. In fact, adopting new technologies and looking into the new controversial means of trading is worth it just because they can bring us more revenue that we would think of.The same goes for the situation in the market. We are never ready for the changes and when they occur we are always whining about them. That is simply counterproductive. We need to adapt to the new situation and learn how to swing it to our good instead.
- We choose to learn in the process.
- We didn’t learn to manage our money.
Trading is all about assessing and managing your funds. You need to have clear vision of your financial situation as well as the quantity of assets that you can afford to put for a certain trade. But unfortunately managing your money and your risks is not a universal knowledge and it needs to be acquired thorough special course and/or tutorials and maybe even a few seminars on the topic. There is not the knowledge which is easy to acquire, but it is the knowledge that is going to be with you for the rest of your trading life.
5. We have no discipline.
- We have unrealistic goals and expectations.
Of course everyone wants to strike big, but not everyone can. That is why it is better to have low expectations and see your performance overcome your expectations than to fail just because you were using any means necessary to reach your goal for the day/week/month.
You need to manage your expectations in order to see the situation clear. Too high of the hopes are only going to cloud your mind and blind your sense of cost.
7. The most important one.
Behind all of the fuss we forget one thing and make the biggest mistake of all. we forget to enjoy what we do. And that is the real key to success here!
Do you agree with me? Write your opinion in the comments!