Various people from all walks of life have engaged in trading forex or binary options.
Have you ever asked yourself why this is happening?
At SlickTrade, it’s our job to equip traders with the essential skills so that they can succeed in their career.
Therefore, in today’s post, we are going to examine some of the core reasons that make traders to bury their trading tools six feet under because of failure.
Poor risk and money management
Most traders experience losses when trading because of their poor risk and money management habits.
For you to be a successful trader, you need to know exactly the percentage of your capital that you’ve risked to the market and whether it is manageable in comparison to the returns expected.
If you are not doing this, then you’ll join the failures bandwagon sooner than you expected.
Importantly, never forget to put a stop loss in any of your trades. Also, always use leverage carefully to avoid wiping out your account.
Lack of trading discipline
Statistics point that about 90% of traders fail within the first few months of their trading career.
And, one of the main reasons that causes this is due to inability to maintain trading discipline.
Most traders are unable to control their emotions to the point that they cannot make sound and profitable trading decisions.
If you lack the discipline to put your emotions below your feet at all times, then your chances of succeeding as a trader are limited.
To maintain an emotional balance when trading, develop a strategy and stick to it at all times.
Remember to always stick to your strategy to determine whether you want to enter a trade or not, and not your gut feelings.
If you don’t have adequate knowledge on how the forex or binary options market operate then you are simply going nowhere.
Or, how can a surgeon operate on someone without having sufficient knowledge on how the human body operates.
The same thing applies to the financial markets. Without equipping yourself with enough skills on how the markets operate, you are simply going to engage in a trial and error experiment.
One of the best ways of learning the forex or binary options market is by registering a demo account.
You’ll be provided with virtual funds you can play with as you seek to perfect your trading skills.
Having unrealistic expectations
Expectations are good, but the problem begins when they start sailing above the roof.
To be a successful trader requires hours of hard work and dedication.
However, some traders think that trading is a get-rich-quick scheme and they start behaving as if they are in Las Vegas.
Achieving trading success needs persistent efforts to master the strategies involved.
Hanging on the fences or trying to squeeze the market to give abnormal returns often leads to traders risking more money than merited by their potential profits.
In the end, they end up causing too much damage to their trading accounts.
If you want to start a rewarding career in forex or binary options trading, then let SlickTrade equip you with the right skills to avoid unnecessary failure.