In trading, 92% to 95 % of traders face a loss and leave the market. That’s why many people don’t want to trade. But, as a retail trader, if you can learn to manage the risk, you may not face failure. Sometimes, traders take a huge risk, and thus face a big failure. Bear in mind that without pushing yourself to the extreme level, it’s not possible to get success. So, you should practice continously so that you don’t make any big errors and face severe loss.
In this article, we will discuss why rookie traders face a big loss. Along with this, we also mention, how to reduce these mistakes. So, as a newbie, if you want to go in the long run, you should read the article.
Changing the plan frequently
Some traders change their plans quickly and so they fail to overcome the barriers. Actually, if the situation changes, they think, the plan will not work. But, they don’t understand the fact, the situation will not go in the same way. They have to deal with the ups and downs of the market. So, they should not change their plan without any valid reason. However, try to follow the conservative way of trading to achieve your goal.
However, sometimes, traders fall in love with a specific plan.This is not good for trading. Because it’s important to change them after some time. Otherwise, it’s not possible to gain success. But, after making the changes, trial the plan through the demo account so that you can understand whether the changes are good for your trading process or not. In fact, many newbies change their plan unnecessary and so they face problems. Visit the site of Saxo and learn more about the professional trading approach. This will help you to create a robust plan.
If you trade aggressively, you may not able to avoid the loss. Sometimes, after going through the worst situation, traders can’t trade properly. They become revengeful. For this reason, they make some insane decisions. Keep in mind that during difficult situations, you need to be cool. Otherwise, you can’t make money. Trading is all about taking the right decision at the right time. That’s why if you fail to do so, you may face a big failure.
So, if you feel tired, you should take a break. As a result, you may change your mood and restart your journey. But, if you try to beat the market, at the end of the day, you may face a big failure. So, learn to control your anger as it will protect your account balance from the big losses.
Don’t take the responsibility
Without being responsible, you can’t establish yourself as a pro trader. To make the right decision, you have to take responsibility. However, this is seen, most of the traders blame others for their failure. They think that because of the aggressive nature of the market and their broker’s mistakes, they have to face loss. But, in reality, as a retail trader, you’re the only one, responsible for your failures.
So, to get success, try to become responsible. Otherwise, it’s not possible to go ahead. Professionals never deny their responsibility. They always accept their losses. That’s why they are now making a large profit.
Not being prepared
Some newbies start trading without making the proper preparations. That’s why they make huge mistakes. They should know, if they don’t recognize the different things of the market, they can’t take the right action. To maximize the profits, try to read trading-related books and articles. As a result, you may better understand the Forex market.
So, if you can avoid these mistakes by taking the mentioned actions, trading will become easy for you. And, you’ll start to make large profits. So, try to apply these techniques to get on to the path of success.