Can you lose money on forex?

Can you lose money on forex?

Can you lose money on forex? / The pitfalls.

99% of the traders make mistakes. So here are the most common mistakes for you so you hopefully won’t make the same mistakes.

Losing trades:

Losing trades are just another day at the office. It’s just that simple. Don’t let them get to you. Every trader on Wall Street or trading from his home office will face losing trades. A trader with a 80% success ratio will still lose 20 out of 100 trades he makes. Keep your risk tight, safe and disciplined.

Losing money:

Unfortunately 90% of all traders are losing traders. They lose their confidence, start doubting themselves. This encourages them to pay for bad Forex services or even desperately let other “winning” traders trade on their account. Again, there are many people with no winning track record willing to help you for a certain price. Don’t be desperate. Your will land power is all you need!

Most important reason for repetitive losing traders:

Losing Trades – Chart Loonatic:

There are lots of fundamental impacts that could easily distract a trader. Also there are a ridiculous amount of trading systems and trading software, which have lots of indicators and templates etc. As a trader you’ve got to filter these indicators and narrow them down to the ones that matter the most for your own strategy. WARNING: This could be difficult for a beginning trader.

It’s not necessary to spend hours and hours behind the screen analyzing the news or charts. Keep it simple and stick to what you need. Keep it organized.

Can you lose money on forex? – Over-Trading:

Most traders lose money simply because they trade too much. We call this over-trading. Over the years we have learned that traders succeed on their demo account but once the real game begins they start losing. Once your real money is on the line your emotions are kicking in. Prove that emotions can kill your account. Over-traders purely trade on emotions.

Everything comes down to your technical skills and not your emotions. So try to create an environment with little to no emotions for yourself. This is done be being organized and having a plan.

Losing Trades – Why Risk Management is so important:

Risk management is vital for success, safety and sustainability in Forex trading. Risk management won’t let you lose more on a trade than your comfortable with. Lots of traders forget about the chance of losing on a trade. Ask yourself this question: “Why would you take more risk than your comfortable with?”

Even if you are one of the best traders or you have this unique talent to see the right spot to step in a trade. Without good risk management you will never be a successfull trader on the long term. Basic knowledge is to always go for more PIPS as your willing to lose.

Aim for the money not for the PIP:

Remember Forex is a job not a casino. Traders who approach the Forex market as a gambler or as an addict to money won’t make the right decisions. He will start thinking irrational and make mistakes. So don’t think of in dollars but think in PIPS.

Can you lose money on forex?

Let me break that down for you.
When your mind is on the money and you think in dollars your risk management won’t work most of the time.
There is always this voice of the devil in your head saying “What if…” Or “Maybe this or that will happen”. Stop thinking like this. Get these dollar signs out your eyes and start think like a real trader. It’s not that easy as use a couple of big lot sizes and flee the scene when your positions are positive. So always calculate your wins and losses in PIPS. Always trade with more or less the same volume. You trading plan has to have PIP goals and PIP risks. How many PIPS do I want to win? Or how many PIPS do I want to risk with this trade?

Losing Trades – No Game Plan:

Most common made mistake is not having a game plan at all. Traders just start out of the blue without a real strategy or plan. If your watching sports, do you think the athletes don’t have a game plan? I bet you a $100 that every team or individual athlete has a game plan. Don’t think like all the other traders “I’m going to make my plan after I’ve done a few trades”. You will end up with an empty account.
Right thing to do is keep track of your trades. Make reports of your trades (a trade journal) so you can look back at what you did and maybe change your tactics a little bit. Organized work like this will help keeping your emotions out of the game as well.
Remember that the game plan you started with doesn’t have to be the winning one, so call a time out, look back and adjust to a winning game plan. Pretty cool right! You can be the coach of your own professional sports team!

Can you lose money on forex?/ From demo to a real account:

After a few successful trades on your demo account it’s tempting to switch directly to a real money account. We completely understand this hunger of you. And why wouldn’t you? After all you’ve just made a few winning trades. The Forex world is all yours baby! STOP right there! Don’t make this mistake unless you have a good strategy and master the strategy of price action trading. If you don’t? Keep playing on your demo account until you are consistently successful for 3 to 6 months. This is a really important lesson. You won’t dive in a deep swimming pool not being able to swim right?

Can you lose money on forex?

It’s just a big difference between a demo and real account. Once your trading with your own real money emotions will get involved. That’s why you need to take your time and wait to your completely sure of yourself. If not, keep practicing. As told before: “Practice makes perfect”.

Best Broker: ICMARKETS.