The chances of making a profit in the Forex market are very slim. People start to trade without having the basic knowledge of this market. Those who are looking to become an established trader in Singapore must know about the reason for which the Forex traders are losing money. Even after having the basic knowledge, the retail traders often find it hard to make a consistent profit. Due to their poor risk management skills, they fail to protect their capital. Eventually, they lose their entire investment. Let’s discuss the top five reasons for which the naïve traders are losing money.
Investing Your Savings
Those who are trading the market with their last savings are always losing money. You must trade with such money that you can easily afford to lose. Taking too much risk in each trade to earn more money is a very big mistake. No one should trade with the money that they can’t afford to lose. If they do so, they are going to have a tough time in the Forex market. Before you think about funding the trading account, ask yourself whether you can afford to lose the trading. If not, you are not ready to trade the market. Stick to the conservative trading method and try to develop your skills by following the basic concepts of the investment business.
Not Learning from The Losing Trades
You must from the losing trades. Analyzing the market data and finding the best possible trades in the CFD market is a very challenging task. Those who are relatively new to the trading profession are always making a decent profit without taking high risk. They always learn from the losing trades as it helps to make a better decision near future. To learn from the losing trades, you must revise your trading strategy and past trading results during the weekend. By doing so, you can expect to make a decent profit and within a short time, you can boost your trading skills.
Breaking the Rules
The new traders frequently break the rules and try to earn more profit. But breaking the rules and trying to trade the market with aggression is another key reason for which the naïve traders are blowing up the trading account. You must follow the trading rules and try to develop your skills by reading books and articles. Be prepared to accept the losing trades since losing trades are nothing but your business cost. Regardless of the result of any trade, you should take too much risk in any trade. Stick to the conservative trading method and try to develop your skills by analyzing the daily time frame. And forget the fact, you can break the rules in the trading profession.
Trading the Complex Market Condition
You should never trade the complex market. The market becomes unstable after the major news and it becomes impossible for the retail traders to make a consistent profit. If you want to change your life, make sure you are not trading the complex market. Follow the conservative trading method and try to develop your skills by trading the stable market condition. Try to make a profit in the demo account by trading the news. Unless you learn to trade the major news, you should never trade in a complex market condition. Trading a stable market is one of the easiest ways to secure profit.
Stop Trading with The Unregulated Broker
Very few traders know the importance of a highly regulated broker. Most of the time, the new traders are executing the trades with the unregulated broker and losing money. You must find a well-regulated broker like Saxo so that you can make a profit without having technical issues. Chose the broker very carefully since your success greatly depends on your trading environment. Unless you trade with a high-end broker, you can’t expect to get the precise feed.