In today forex faq, I will be sharing with you a problem that is pretty common among traders.
Below are the question:
I have been trading forex now for more than two years yet not be able to make head ways, what is wrong with me? Pls i really need your help.
For the above question, I am unable to tell you exactly what is wrong with your method as I do not know anything about you. However I will share with you some of the common problems that I face when I first started trading a few years back.
1) Holy Grail Strategy
I bet most of you are looking for a holy grail strategy that can win 100% of the time. In fact, I have searching for it when I first started trading. I find myself jumping from one strategy from another just because I have a loss from that particular strategy.
One common problem with new traders is they are constantly looking for strategy that wins 100% of the time. Frankly speaking, there is no strategy that can win 100% of the time. The best strategy I have heard of is about 75% accurate.
So if you are still looking for a holy grail strategy, I think it is time to stop and focus on refining a particular strategy. In fact, you just need one strategy that wins 75% of the time with good risk reward ratio and you are going to make money from trading.
My advice to you is to find one strategy that suits your trading time and style and then fine tune it by adjusting your indicators to improve its performance.
2) Itchy Hand Habit
Another major problem that most new traders have is what I called the itchy hand habit. Do you constantly find yourself wanting to hit the buy or sell button and this is one of the main problem with new trader. You are constantly trying to get into a trade and this lead you to get force trading which is something that is not desirable if you want to trade forex for a living.
Force trading means that you are entering a trade based on emotion and not on trading plan. When you are force trading, you tend to get into trades that do not have setups that are according to your plan.
As a trader, you have to stay discipline and only trade when there are setups that are according to your trading plan. The key to making money from trading is not on the number of trades you have made, it is on the number of successful trades that you have made.
Try to overcome this problem if you have one.
3) Constantly Learning
Even though I am able to trade for a living, I am constantly taking up courses on forex. Although I may not implement all the strategy, there are always some stuff that I learn that can help to further improve my current trading strategy.
However please refrain from taking up courses after courses without spending some time to practice what you have learned. There is no point in you taking up a course and don’t try out what you have learned.
From the 3 problems above, I think that the first one is the most serious as this alone can set you back for a long time. Therefore if you are really interested to become a trader, you must spend some time to find one and fix on one strategy to practice until you are able to win 70% of the time.