Many beginning traders are confident that Forex is an easy and quick way to make money. But no one pays attention to the speed with which most of them, financially illiterate beginners, lose all their funds in a matter of days or hours.
Many beginning traders are confident that Forex is an easy and quick way to make money. But no one pays attention to the speed with which most of them, financially illiterate beginners, lose all their funds in a matter of days or hours.
Why does this happen? The fact is that the desire for quick profit overshadows our minds, and excessive self-confidence puts on pink glasses. In this state, we feel like geniuses, unfortunately.
What to do:
The main task is to save your trading account. For this:
We determine the trading system (all trading strategies are tested only on a demo account).
We choose the leverage depending on the amount of the deposit (the less, the better your funds).
We determine risk management, it should not be more than 5%.
Calculate how much you want and how much you can earn per month, transfer to points - this is your goal. Never deviate from the goal, this desire is just an emotion.
Remember: you are not a professional yet, self-development is the only way to success. Books, video tutorials, seminars, tips from more experienced traders, new TSs — pay attention to all this for 1-3 hours every day.
Several of your trades closed with profit, and that’s good. You rejoice, and joy is an emotion. In such high spirits, you open new (wrong) deals that will bring you losses. Hence the conclusion: won - take a break. In a day or two, you will calm down and be able to look soberly at the charts again.
The deal closed in positive territory with some profit, and the price is still going in your direction. Never open a new order. This is greed and it will destroy you as a trader. Follow your intended goal.
Never regret the missed movement. You will lose money by giving in to emotions. After one strong movement, the second will follow, after the second - the third, etc. The market will not go anywhere from you.
Never open many trading positions! This is the maximum risk. Take a moderate one, instead.
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