Trading More Does Not Mean Making More Money

Posted by on March 26, 2019 in News Flash with 1 Comment

When learning the trading market, you can spend a heck of a lot of time going over all the styles and methodology that is behind entering a trade. After putting in untold hours of due diligence, you can try out your own systems using a practice trading account. What a great place to learn! But when you’re ready, you’ll join the Forex experts and gurus that you’ve been following.

While the trading field might not be totally even, the basics are the same. You create your charts and trading style and begin jumping into trades that line up with your criteria. You would think that after all the time and hard work you’ve already been putting into learning the ins and outs of Forex that you would be making money hand over fist. If only that were true!

Making money in the foreign exchange market is a combination of knowledge, experience and good old-fashioned luck. Because any honest broker will tell you it’s not possible to know which direction the market might turn at any given time.

Is More Trading Better?

One of the common mistakes that beginning traders make is to over trade. Sure, you’ll lose a percentage of your trades, just like those who are more experienced. But, the knee-jerk reaction is to stay in the game longer and make as many trades as you can. The gut instinct is to try to win big, so as to make up for those losses. But unfortunately, making more trades is a mental game we play with ourselves. If the market isn’t going well, step out for a while. Watch from the sidelines, but don’t keep throwing in good money after bad in hopes that you’ll suddenly cover your losses with profitable trades. Not all trading days end up in profit. Understand that so that you don’t fall into the trap of continuing to trade and losing even more.

Making Money Without Losing Your Shirt

It can be quite a challenge for new to beginners stop trading in the middle of a downturn. There’s always that feeling that if you just press on, you can recoup any losses. Or if you make the mistake of setting a daily trading goal. What if you haven’t yet met that goal? Do you keep trading, with the assumption that the more hours you put in the more money you’ll make? No, Forex does not work that way.

Trading Smart and Making Money

Instead of stretching your trading hours, learn to trade with the market. If the market is going well, and you’re earning nicely, then sure, stick with it a while longer. But there is always the risk of staying in too long and then losing whatever gains you made early on. As with anything, discipline is a must when trading. Set the hours that you can trade, watch the charts, follow your own trading strategy to choose the best currency pairs and come out a winner.

 

 

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  1. leontioscassian@gmail.com' FXAficionada says:

    Hello, Here’s a tool that aims to be more complete than the ones usually quoted for forex trading hours: http://www.markethours.net.
    Couldn’t find one which considers all the parameters (time zones, daylight saving times, weekends, holidays), so we developed a new one to take them into account, with the added benefit of adapting to the viewer’s timezone automatically and showing trading volumes.
    Hoping you will like it 😉

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