Do you know, up to 96% of forex traders give up midway? Though there is less number of people sustaining, they are able to make money in forex trading. A forex trader should know about the potholes even before he starts his forex journey. Let’s move ahead to discuss the reasons for quitting and the ways to avoid them.
Losing the investment and too much money
A newbie trader should learn to sustain his trading. Forex is a highly volatile market and if you don’t employ all the precautionary measures, you would lose your money anytime. Losing not only the capital but losing more amount of money lets the people quit forex trading altogether.
How to stop quitting?
Don’t start with larger trades. Reduce the number of trades and the amount involved. It is a fact that top traders don’t trade frequently and they choose specific situations only. But it takes some time in trading to assess such situations. And risking smaller amounts helps the trader to hold his trading account for a long time and he will get more opportunities. The general rule is to risk only 1% of your capital for every trade. Another simple rule is, don’t trade money that you can’t afford to lose. Setting goals before starting trading, avoiding leverage, etc. are some other things to follow.
Not having the required knowledge
Most of the traders enter the market with the aim of making quick profits. But it needs knowledge, patience, and practice to tackle the market. Traders enter the market with misconceptions and don’t know the real way of making money in it. Newbie traders in general are ignorant of the way the market works and follow the strategies given to them. They follow what others say or do and don’t know what they really do in forex trading.
How to stop quitting?
Start to teach yourself how to trade and keep learning. You should dedicate your time to learning. Reading one article, watching one video, or a short-term course won’t help you. In fact, learning to trade is a never-ending process. When you stop your learning you are prone to make mistakes in trading. And you should not feel that learning is a tough job and quit it midway. You should find time to learn and learn regularly.
Not having the required discipline
Though you are hard working in nature and having enough knowledge in forex trading, you should have discipline in trading. If you are not able to control your impulses, you would end up as a quitter. Forex trading is not a get-rich-quick scheme. It needs great skill and patience to succeed as a professional. If a trader doesn’t have the right attitude for trading, he will find it difficult and stressful.
How to stop quitting?
You have to start with understanding your trading psychology. In trading, it is not the same for all. What works for one may not work for you. So, following someone is not advisable. Keeping a trading journal would help you to pick the right strategies that work for you. And you can also lower the stress involved by aiming for less. Beware, too much stress would lead you to make more losses. You should learn to stop acting on your impulses. When you encounter losses, let them go and move on. Learn and follow the essential things to stay on trading. And stay for a long and be successful in your trading.