Today we are going to discuss a very common phenomenon in trading especially among new traders. In fact, I do have the same thinking when I am new to this field a few years back.
Below is a question from our fellow trader:
When I entered my trade, market always goes the other direction. How can I solve it. Why it always happened. Feels like my broker is watching me all the time. Please explain.
I bet most of you who are reading this have this same feeling before. When I first started trading, I often thought that the forex is a 50-50 game. Even if I guess and enter a trade in any direction, I will still win a few of the trade. However what I find was I was often stopped out by the market no matter which direction I take.
At some point, I also have the thinking that someone is watching my trade and is trying to stop me out. In fact, this is just our way of putting the blame to someone whenever something doesn’t go our way.
What really leads to the loss is your lack of knowledge in this field. After I manage to make profit in trading, I started to realize the 2 main problems that lead to my losses in the past and I will share with you some of them in this post.
1) Lack of Knowledge – What I meant by lack of knowledge is you are trading with your emotion and do not have a reliable trading strategy to use. Most new traders thought that forex trading is an easy game and can make thousands of dollars per month with ease.
With this mentality, most new traders do not put in effort to learn and practice their strategy before they start to trade live with it. This is usually the reason why 90% of new traders failed in this trade.
2) Lack of Patience – I know of some traders who have good trading strategy on hand but still losing money in trading. This is because of their lack of patience to wait for their desired entry to occur. This leads them to enter their trade earlier than plan and therefore lead to more losses than wins.
My advice to those of you who are facing the same problem to really take up a course to learn a good trading strategy and then spend a few months of your time to practice until you are able to execute the strategy at ease.
Remember this, the broker and the market is not trying to go against you. It is your lack of knowledge that causes this problem.