Basic Errors of Traders in Forex.

Why lose money on Forex?

Today, forex trading is available as never before. Open an account and start trading almost any. The minimum deposit starts from 1 dollar. Therefore, trading is becoming increasingly popular.

But statistics is not happy: 95% of traders lose their money, only 5% of them earn. With the seeming simplicity of trade, in fact it is a serious business that requires a lot of training and experience. Having completed primary training on paid courses, it will not immediately become a professional trader. This is the goal for years, gradually improving their trade.

But most novice traders do not think about it. But in vain. Moreover, 90% of newcomers make the same mistakes! There is a lot of useful information on the Internet, this is talked about on forums, it still does not change anything, as there were these mistakes, and remain. Consider the main ones.

Overstated risks. All traders want to earn a lot, at the initial stage, many open too large transactions, which leads to disastrous results. It is not uncommon for the whole deposit to be lost in one unsuccessful transaction. Professionals do not allow this. Here is the article of a successful trader: "Find out what the position size should be!", In which he shares his method of calculating the risk in each transaction.

Experienced speculators agree on one thing: do not risk more than 5% of the deposit in one transaction. Failure to comply with this rule sooner or later will lead to the loss of all money during a serious drawdown. It is necessary to remember everything.

If we consider the category of trend systems, the rules are as follows: do not risk more than 2% of the capital. This is explained by the large number of losing trades, drawdowns are much deeper, compared to other trading styles.

It is important to note that the concepts of the volume of position and risk in the transaction are confused. The volume of a position is the number of lots purchased or sold on Forex. And the risk in a transaction is the amount of money that a trader will lose in the event of a price movement against him.

Psychology of forex is the second stumbling block on the way to profitable trading. Working with money exerts tremendous pressure on a person, especially unprepared. In such a state, the appetite disappears, the sleep and the ability to make decisions worsen, which is very important! To work with a large amount of information in stressful situations is one of the qualities of profitable speculators, to which one is striving to start.

There are absurd cases when a trader has proven tactics, work experience, but at a certain point refuses to follow his strategies and makes rash transactions that bring losses. That's what stress can be.

If any technical issues can be solved, then psychology is much more difficult. Understand in his head is a small percentage of traders who achieve outstanding results.

One thing remains unchanged: what will you be, depends only on you! The main thing: seeks results, improves trade and does not make major mistakes. All speculators see the same charts, are almost on equal terms, but someone earns, and someone loses.