No matter your experience or financial capabilities, you can succeed in foreign exchange trading. The reason why many people fail is that they are not able to make the necessary adjustments. Some keep on repeating the same mistakes they’ve been making in the past and expecting to have different results. It doesn’t work out that way. What steps should you take to turn your trading results around?
Consider moving to a new foreign exchange trading platform
There are many kinds of trading platforms available. Some of them look very good on the surface but in reality, they make trading very difficult. For example, there are trading platforms where it is not possible to close out half of a position without exiting the trade entirely. There are also platforms where you cannot exit a trade until you have closed positions you opened before it. Some traders have to go through the hassle of switching around two platforms because the platform with their account does not support certain indicators. If you feel your trading platform is holding you back, move to a new one!
Stop leaving your trading to luck
Many traders often take positions in a “trade and hope” manner. Instead of practicing good management techniques, they enter trades placing all of their trading capital on the line while hoping and praying it goes their way. Such trades work out but only 1 out of 10 cases. Most of the time the trader will close the trade before it goes in their favour. This is because they can’t stand the thoughts of losing their account and so they close the trade as soon as they see a drawdown of 15-20pips. If the trader used a reasonable trade size, he could have afforded to hold the trade for longer.
Stop looking for validations
No matter the kind of system you give to certain traders, they will never trust it or take positions when they are supposed to. They will still go on forums seeking validation from other traders around in bid to see if anyone is taking the position with them or not. This lack of self-confidence has destroyed the trading account of many traders.
Leverage is a killer
No matter how this point is emphasised, many traders still keep making the same mistake over and over. If a broker allows you to take 1:1000 leverage, you are not under compulsion to use it. Nothing stops you from using a 1:200 or 1:500 at most. When you select very high leverage, you will be tempted to use high lot sizes and enter too many positions
Consider changing your broker
If you have noticed any shady dealings in your trading, don’t hesitate to take your money elsewhere. The most common way brokers cheat traders is by triggering their stop loss even when the market is still 2 or 3 pips away from it. Anytime your stop loss gets triggered check what the price says with other brokers.
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