Are you planning to quit forex trading? This is probably one of the traps you’ve fallen for! Many people don’t trade for various reasons, but that doesn’t mean you should give up.
You’ll have a hard time getting it right if you try to do forex trading. Approximately 96% of forex traders lose money!
However, there are ways to avoid these traps and make a fortune. You have to know where to look.
Forex traders may quit for various reasons, but these three are often the most common.
1. They’re losing too much money
Most people quit forex trading because they lose too much money, which other reasons can cause.
Survival should be your first goal as a beginner. Starting forex trading is unlikely to result in much financial success. What makes you think that you will automatically succeed?
In the beginning, you will probably have a rough time emptying your account. This is pretty normal, despite how it sounds.
How to prevent this?
It will probably be a good idea to trade less and smaller amounts if you lose too much money.
Forex traders are known for not trading that often; they only trade when they’re certain they’re going to make money, not in every trading situation.
It takes time for us to recognize such situations, of course!
Trading forex for a living is not for everyone, and many people quit because they lose too much money.
You should also avoid doing some key things. One of the most common pieces of advice given to beginners is to stay away from leverage.
2. They don’t understand what they are doing
For some beginners, this is a huge problem. Traders think they have found the holy grail when they start trading. As well as being a precursor to the other reasons listed here, it can contribute to them.
There is a high probability that these people believe exaggerated, extremely unique, or even fake success stories.
Forex traders are dazzled by the potential profits they can make, ignorant of the skill required to trade forex.
As well as believing strategies that promise them returns, they are also likely to believe myths.
In such cases, traders tend to rely on tools rather than their knowledge to make money. It is possible that they only follow technical indicators and have no knowledge of what is happening in the market.
How to prevent this?
By learning how to trade and keep learning, you can prevent this from happening to you.
You can achieve this in many ways, but the first step is to dedicate some time to learning.
It is impossible to prepare for everything you need to know to trade forex with just one video, article, online tutorial, or course.
At Trading Education, we repeat that learning to trade forex is an ongoing process.
3. They’re not disciplined enough
You are likely the exact opposite of what was said previously.
Even if you know how to trade forex and have studied hard to get where you are, you can get into trouble if you cannot control your impulses.
Your issue might be that you don’t see results fast enough; you’d like to see success immediately, but most of us realize success takes time, not just a few months.
There is no quick way to get rich from forex trading! You must have many skills and experience to earn a profit trading forex.
There are, however, other reasons for the lack of discipline.
The problem might be that they aren’t mentally suited to forex trading. There can be a lot of stress associated with day trading, especially if you must always pay attention to it.
You may have a very logical and good plan but never seem to be able to stick to it.
How to prevent this?
You can avoid this by understanding yourself more, specifically your trading psychology.
Trading psychology aims to understand how psychological factors affect our trading decisions. There is no one-size-fits-all regarding traders, but that doesn’t mean that some can trade and some can’t.
Bottom line
Either you try to resolve what caused your feelings of quitting or let go of it and move on. Once you’ve found out what caused your feelings of quitting, you have two options. Most traders feel like quitting due to one single issue; they don’t really understand forex trading, as stated above.
