In today forex faq, we have a question from one of our fellow traders.
Below is the question:
I Would like to know why I always lose my trades and why am I always doing the opposite of what the market are doing?
First of all, I must say that this is a problem that I believe all new traders are facing. In fact, this is also one problem that I used to face when I first started trading forex.
However you did not specify which trading method you are using and therefore I cannot comment on your strategy. Based on my opinion, your number one problem is you do not have a good strategy on hand.
It seems to me that you are randomly trading the market which leads you into the above problem. What I mean by a good strategy is that it must be a proven strategy and is one that you have done backtesting to verify the performance of it.
My suggestion for you is to get yourself a good strategy. Once you have learned it, you should do some backtesting with it for the past 6 months. From that backtesting, you can have a feel of how well the strategy performed for the past 6 months.
If it is profitable every single month, you can start to practice the strategy on a demo account until you are able to execute the strategy well.
Once you have a good strategy on hand plus you are able to execute it with perfection, you will never have to worry about doing the opposite of what the market is doing.
I hope that I have answered your question and if you have anything to add, do feel free to give me your comment below.