Losing Money? Here Are 10 Keys to Losing It Fast in Forex
Many forex traders – both new and experienced – lose money almost 6 out of each 100 trades that they take. While theNational Bank settles that the chances are “not good” when an investor invests 100 dollars, I’m pretty sure that this number isn’t half as much as the experience some traders have.
If you would like to find out how to lose money in forex, all you have to do is simply just follow my key tips below.
- Do Not Diversify.
You can risk your entire account on something that only has “3” key points. If the share price goes up 30%… you lost 30% of your account (not only that but you still didn’t take the opportunity to make a profit).
- Wait For Market To Open.
When the market opens for business, the volume and momentum are usually the highest. Again, these conditions usually take place around 8:00 AM Eastern Time, so if you’re one of the first 10 traders in the market, you’ve already missed a significant portion of the move.
- Take In Enough Money Too Easily.
You should make sure that the risk/reward you’re getting is still in your favour before taking too much money. Don’t be so sure that you’re only risking $10 to make $50. If you do this, I can almost guarantee that you’ll “win” less than half the time.
- Trade Without Fear.
Avoid trading against your system, or fellow traders when you have a losing position. Trading against the market will only increase the size of your losses.
- Get Clued In and Learn.
Do not trade blindly without having a strong trading system in place. You may think that you have a killer strategy that may still not work, so don’t focus too much time on this at the beginning. Instead, focus on learning to profit with the market (including your current system).
- Do NOT Use Third-party Signal Providers.
A lot of signal providers claim to have models which dramatically improve your chances of success. Unfortunately, with 90% of these, they actually don’t. Instead, they’re using fitness trackers, or something similar tosh Pioneer technology. Instead of using real-life trackers to track you, they’ll tell you that their system has been tested and that you’ll receive accurate signals automatically.
This is easily the biggest scam of all time, and I can tell you that I’ve tried every single service out there.
In my experience, they don’t deliver on any of their promises and give you a false sense of security in order to initiate your account.
- Staying On Top Of Your Forex Trade Log.
In a trading environment, a single moment can prove to be a decisive moment. Often times novices regain a profitable position, or close their trade in a pinch, too late and too soon.
You need to learn to “ulatesively” track your position with a precise log. An example of this would be to move the Stop-Loss figure up or down to grab a small profit, or if you’re especially wise, to change the direction of your trade.
- Keep Your Trading Time Below The ladle.
Oh, my gosh, I keep telling you to cut your trading time in half. Sticking the expiration time down to only 3 hours or less is not only a waste of time but your body will thank you for it.
The body needs to take an influx of hormones as that is what you are doing to wake up each day. Imagine the amount of energy it would use, you know, burning off, resetting itself for another day of trading.
Also, if done for a long length of time, your eyes will take in more negative signals causing you to be foggy.
Finally, lowering your risk in the smallest amount possible will ensure that you lose little and destroy more.
If you’re trading on a demo account, treat yourself. Go on a vacation. Take it out of your wallet. Cut out any and anything and change clutter. Cut off your Colses Day, anything.
- Let It Ride.
I really hate the word “let” but it’s true. Can you imagine going back home in the middle of the night and just letting nothing bad happen? Let the trade go your way?
Let it go?
The only time I’ve ever done this is when I’m extremely sure of what I’m doing. Then, I let it ride, trust my normal and intense state to relax me.
Just like a roller coaster or a jungle, you are constantly doing the opposite on a regular basis.
- Become Friends with Your Partner.