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Posted on Sep 30, 2019 at 03:14 PM
There's no doubt that Forex trading remains the only place in the financial market where you can get the craziest returns and because it has a potential to give you more than every other investment, it comes with a high risk.
A lot of times in Nigeria, people jump into Forex either because they have seen a friend, colleague or family members who are making consistent money from the Forex market or because they ran into a fancy advert telling them that they can escape poverty and become overnight millionaires just by buying and selling currencies.
Now technically speaking, the ad may be fancy but the dream is real and it comes with a lot of hard work, but the sad reality is that most new traders are not ready to do the work and in just no time, they begin to fail in Forex and unfortunately Failure in Forex comes with loss of money.
As a trader and advisor, I have had many months seating over a desk to listen to all types of traders complain about not making profit and I have compiled a list of the most common reasons why some Nigerian Forex traders may not be making money.
As you read through, make sure you pick out all those that affect you and fix it, if you really want to start earning from the Forex market.
This topic will be divided into several series and will be posted twice weekly and will help you to diagonize the reason why you are not making money and how to fix it forever.
1. Starting off on the wrong foot: Forex is risky, but if you currently trade Forex market and can’t tell when it’s time to buy or sell a pair, then you are at more risk than every other person in the market.
Is there a “one size fit all” way to trade Forex? No! But is there a right way to get started with the Forex market? Absolutely YES!
I am sorry to break your heart but if you started trading Forex without training, you started on the wrong foot, because in this market, the only thing we do Is buy and sell currency with the aim to make profit, so if you cannot even tell the trend for a buy or sell, then you should pause!
And here’s why I say that:
Can you get a degree without attending an accredited higher institution? NO
Can a child walk without learning to crawl? NO
The bottom line here is that “ You cannot earn from the market by trading blindly” at every point in time as you trade the market, you have to understand what you are doing and that only comes from understanding how the market works.
The more you trade the market blindly the more risk you take on yourself. I know it may be a hard decision but a stitch in time, saves 9.
Increase your chance of earning consistently from the Forex market, by learning the right time to buy and sell daily, click here to learn the right way to trade the market now.
It’s simply to save you from your curiosity!
It is expected that as a professional Forex trader, you would create a strategy that suits your timing, personality and capital.
And because your broker knows that you want to verify if the strategy you created without losing money, they provide an experiment lab for you and that is the DEMO account.
Before launching any trading strategy, whether self developed or learned from mentor, the first thing you need to do is test its efficacy and adjust it to fit your trading personality.
Imagine if the pharmaceuticals didn’t test their drugs on animals before they sell it to us?
So many lives would have been lost!
In the same vain, it’s too much a risk to try a strategy out on your live account, the best approach will be to try it out on a Demo account for a few days (on an amount you can afford to deposit.) and see how it works
If the strategy work as planned, you can then implement on your live account. And if it doesn’t work the first time, make necessary adjustment, speak to an expert and test for a few more trades.
If after several tests it still doesn’t work out, it would be best to move on to another strategy that has been proven effective over time.
The bottom line here is that: In the process of this experiments, you would not be risking your real capital.
3. You Accept the Bandwagon Mentality that Forex is Hard: Forex is hard, bla bla bla... the next time someone says that to you, ask them what they know about Forex and you will find out that they know absolutely nothing!
They probably heard it from someone else and pick up the believe too and that has a way of shaping your experience with Forex, I mean, this is the same Forex that people are making money from everyday.
Sometimes this people even say this thing to discourage you, so that they can tell you, that they have been trading for donkey years and ultimately ask you to give them the money, so they can trade for you.
The only reason why someone would look at this market and say it is hard, is because they have been making losses and the truth is that majority of the losses comes from them not understanding the market or being greedy.
If you really want to make it in the Forex market, you need to throw down every bandwagon mentility and get set to patiently figure out the market and how to customize the tools available to your personality, such that you can make most of the profitable trends and eliminate the avoidablel losses.
Remember things always seem impossible until someone does it. So the next time you hear someone say Forex is hard.
Run as fast as you can!
The next series will share more reasons why Nigerian Forex traders don't make money, if you are currently making consistent losses and you are yet to point out the cause of your losses, stay tuned cause I still have a tons of reason, based on real life situations to share with you. (The next series is out! Click here to continue reading)
And if you have already found your reasons for losses above, it's time to fix up and if you need help and mentorship in getting that fixed, then leave a comment and we would be sure to give you all the support and help you need.
And finally, if you are a protrader, I am very sure that you have been through this stage of consistent losses and by now you should have overcome it.
So here's the question for today: What are the 3 most common reasons why you think that young forex traders don't make money?