Reason #1: Media hype gets them in!
Traders tend to jump straight into the Forex market based on what they see and hear on Bloomberg, CNBC and what they read in the newspaper.
Remember, when you read a news event, millions of other Forex traders have read it too.
So all likelihood, the Forex market has already factored in this information, and now you can only trade on the market’s unpredictable reaction to the news.
Reason #2: Novice Forex traders blame others!
At some time in our lives, we all tend to pass the blame and find fault elsewhere…
But, when you’re trading, whatever happens, it’s all your fault..
You choose how much money you’re willing to risk, when to get in and when to get out of your trade.
The fact is, you can’t win every trade. When you take responsibility for your trading, you can take action and develop your own trading
strategy to minimise your trading emotions.
That’s why you should protect yourself from severe losses and only put in the amount of money you’re willing to risk in any one Forex trade.
This will help you maximise your reward over the long term.
Reason #3 New Forex traders don’t have a strategy that they stick to!
This is the most important factor!
In an unpredictable market, you need to have a very strict trading strategy with specific entry, exit and risk levels.
This way you’ll know what to follow every time, when you trade.
If you follow them, you’ll remember why you entered into a trade, and if doubts set in you can just go back and look at your reasoning.
This will ensure that you never close a winner too early or hold onto a loser for too long…
So how can you find and develop a winning strategy?
I’ve spent years developing a winning Forex trading strategy, so you don’t have too!
Instead of being in that 80% of losing traders, rather focus on managing your trade and limit your losses.
To find out more on how you can bank over 200% cumulative gains a year, click here!