Most of the people who have just entered into Forex currency trading or they have been trading for a while now, one of the challenges that each trader face is making profits. Usually people before becoming a trader often take some sort of short course like technical analysis or price action or other similar type of course. One of the main problems that not profitable traders go through is that they don’t know what they are doing when they are trading.
Not profitable traders may have a decent understanding about support and resistance level. Moreover, they may be able to understand news related to this industry and its impact on the currency exchange market. However, as a matter of fact they generally don’t have any clue about what they are doing for example these traders are trading day in and day out but they usually don’t know why they have entered trade or why they have to go long or go short or why they closed a trade, and so on. These are some of the common mistakes that are made by inexperienced traders.
Firstly, you need a have sound Forex currency trading plan and follow logic instead of your emotions leading the way. Those traders who are making profits in this market do follow some type of trading plan. Once you have developed your own plan with specific set of rules that are profitable then you need to stick to it and follow the plan through Monday to Friday. In contrast, most people often find trading plan to be boring or not exciting but it is one of key factors that determine the success of traders in this market.
Secondly, by now most of you have must have read that around 91% of the people don’t make profits and to Be in the top 9% of Forex currency trading you need to follow a trading plan that has proven to be successful in the past. Moreover, you need to be comfortable when you are trading currency whether you are following price action or news or any other Forex indicators as long as it have proven to make money for you in past. Furthermore, one needs to give proper time and attention to learn about trading. Most people are not willing to learn the art of Forex currency trading instead they look for easy way to make some money.
Thirdly, you should give proper time to studying technical charts and at least give two to three hours on a daily basis. Additionally, you will be able to identify patterns and make better decisions based on it. The point to note here is that if you want be in top 9% then you need to commit time otherwise, you will wasting your resources and making bad choices.
Lastly, your mindset is an important element that would ultimately affect your trading activities. Whatever is going on your mind it will be reflected on your trading even profitable traders make mistakes but they don’t give up easily and they keep on looking for good trades that will make them money.