The most common mistakes made by Forex traders is they want to trade the market by themselves. They do not realize the market needs sometimes to play out the trades by itself. This market is very large and no traders can corner the market. It is a suicidal mission if you try to fight the market and win it over. What you can do is going by the trend of the market and place your trades and hope they win. Even with the most successful strategy in Forex industry, you can never hope that you will win every trade you place. If you do not give the market your time, it will also not give its profit. It is a mutual cooperation between you and the market where you are making a profit for giving the market time. If you are new to this industry then you need to see what the professional traders in the United Kingdom are doing. They are simply focusing on quality trade execution and they never change their trading parameters once the trade is live. From the very beginning of their trade execution, they know what the possible outcome of their trade. Losing or winning doesn’t actually matter as long as your trade the market with proper money management.
How can the market play out your trades?
If you are wondering how this market can play out my trades you are not wrong .It is not that this market will come alive and push your trades in the profitable area where the money is. T is somewhat like that but done in a different way. For example, imagine you are trading Forex when the market is normal. There is no volatility and you are expected to make a 10-dollar profit. There is a news release that the USA has been attacked by terrorists or the Federal Reserve Bank of USA has been caught on fire. If anything happens like that, you will see that the market has turned into a rollercoaster ride.
The prices of the currency pairs are moving up and down like a rollercoaster and you have no control over the markets. Even the big and largest banks of the world also cannot control this market when there is volatility. If you exit your trades at that time, you will only be making a loss in your trading. But think that you are not closing your trades and giving time to the market to get into its earlier volatility. You will at your surprise that your trades have recovered from the market volatility and they are now in a profitable area of the chart. You can close your trades with a happy heart knowing that you have made a great profit in a volatile market where most other traders have lost their money. It has been only possible because you give time to let the market work out its magic. This is how Forex works and traders make money by trading CFDs.
Don’t get frustrated
Some novice traders in the online trading world often get frustrated after facing few losses. They think that this market is not the right platform for them. Some of them quit trading and some even blow their entire trading account by taking a big risk to recover their loss. But if you simply trade with high-risk reward ratio and let the market do its duty then you are never going to become a loser in this industry. And make sure that you trade with a reputed broker like Saxo if you consider trading as your full-time profession.
Summary: Losing is just a part of the trader’s life. When you place your trade you should never close your profitable trades too early. Let the market do the rest of your work. Just place the trade with proper money management and wait patiently for your trading result.