Most people get busy with their trades whenever they have placed it on the market. The moment they have placed the trade, they start thinking of impossible things. We know it is hard to stay calm but most people do not know the market is the biggest player in the industry of currency trading. The more you try to make money and trade against the trends, the more money you will lose. People do not agree as they think analyses is the last word. These analyses have also many limitations and they need a lot of workouts before they can be successfully used. You do not want to lose your money over your ego and this article will help you to know that you need to give the market the control of your trades. What you can do is over and now the industry has the trade. You can only wait and watch and pray the trends favour your trades.
Closing your trades too early
The novice traders always close their winning trades too early. On the contrary, when it comes to losing trades, they wait for a long period of time with a great hope. But this is one of the major mistakes you can make as a retail trader. You have to let the winners run long to maximize your profit. Try to close your losing trades early and wait for the next trade setup.
As a new investor, you should never start trading with your real money. First of all, you have to understand the complex nature of this market. Try to develop a simple trading strategy by using the Forex demo account. Demo trading account is will give you the perfect price feed to trade to learn currency trading. You don’t have to risk any real money and you can trade as long as you want. Once you feel confident with demo trading performance switch back to live account.
Going against the trend is a suicidal mission
You must have seen movies where the hero has to sacrifice his life for saving the heroine. Well, this does not only happen in movies but also in this industry. If you think you are an alone warrior who will walk the path of the hell, you are very welcome. You cannot take one step further before you realize your trading career is over. Do not try to be a hero and let the market play out your trades. It will take some and you are not going to be successful always. Accept that as it is how people have been making money throughout their lives. Going and trading against the trend is a suicide. When trend followers are losing their investment, it may seem practical that you should take your position against the trends. It is not helpful as only few could make it happen. Even the professionals also advise trading with the trend always. This market has got its own trends and is hard to predict. The safest way is to trade with the trend and let the market turn the trend in favour.
You alone cannot change the trends
Even many hedge funds of the world have tried to manipulate the industry but they all failed. The size of this industry is so big that it is impossible to move a little even with all their efforts. You are a small trader with a small investment. Do not try to trade against the flow and control the trends. Trading with the trend is always favourable.
It needs some time to favour your trade
The market cannot move the way you want. It will take some time before the market gathers its momentum and start moving in your favour. If you close your trades earlier, you will be a loss. Keep the trades open and set a suitable stop-loss. It will save your money if the trends get volatile.
