The trading business might offer you a steady income source but it is not so easy to learn to trade. The majority of the retail traders are having trouble to save their investment. Most of the time, they are trading with high risk and trying to earn more money. If you look at the statistics, you will be surprised to know only 3-4% of the investors can make a profit. To be honest, trading is not for all. You need to know about the key signs which tell you to stop trading immediately. Let’s get into the details.
Losing too many trades
Are you looking too many trades even after three years? Those who have precise knowledge and still losing money might not have the mental stability to trade the market. If you want to make a decent profit from this market, make sure you do have strong mental stability. Without having the ability to accept the losing trades, your trading strategy can’t make you rich. You will be losing trades and taking aggressive steps to cover up the loss. If you are such a person, it’s better to quit trading. There is no reason to make your life much worse by trading the market with emotional attachments.
Trading without any stops
Some of you might not have the ability to place stop. Trading without any stops is more like jumping off the plane without any parachute. The naive Forex traders often say they don’t want to accept the loss. They want to follow a safe approach in trading so that they can make a decent profit from this market. But if you look at the skilled trades, you will understand why the majority of the retail traders can make a consistent profit. They always trade with tight stops and they trade the market with hope. Unless you manage to learn the use of proper stop loss in trading, you should stop trading the Forex market.
Adding position to the losing trades
You must not add a new position to the losing trades. Though it can help you to recover the loss most of the time it ends up badly. You need to cut down the losing trades and look for the next trade setup. Without following these rules it will be hard to make consistent profit from this market. Think about the long term goals and try to improve your skills by learning from your mistakes. Never push yourself too hard to recover the loss. Losses are very common in trading and there is nothing you can do to avoid losing trades. If you intend to change your life make sure you are not trading the market with high risk. Because if you do so, you are going to lose most of the trades.
Trading with high risk
You must know your risk tolerance level or else it will be tough to make the proper decision in each trade. Most of the retail traders are losing money since they don’t know the perfect way to control the risk exposure. They are taking unnecessary risks to earn more money. Eventually, they blow up the trading account. If you intend to become a skilled trader in the Forex market, learn more about risk management policy. Accept the losing trades with a big smile so that you can make a decent profit from the winners. Trade with high risk to reward ratio so that you don’t have to lose too much money in trade. Follow the conservative trading method so that you don’t have to blow up the trading account. Stick to the basic rules of investment and you can expect to make a big profit.
Learning to trade the Forex market is not hard. But if you face the above problem you should stop trading the market immediately. But this doesn’t mean you can’t trade the market again. By overcoming this issue, you can expect to join this market again.