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Posted on Oct 14, 2019 at 07:00 AM
Why Exactly is it so hard for you to make money from Forex? Find out the seemingly small mistakes that you are making that is preventing you from cashing out from the Forex market and of course my version of a fix to help you get to the right track.
Hey Welcome back here!
This topic is a series that started in September to help you identify the little mistakes that you make that prevents you from making profit and cashing out from the Forex market:
I do not want to assume that you started the series with us, so if you are yet to see the first series, Click here to open it in a new tab, It is about 4 minutes read, so you can quicky catch up before diving into this series with us.
But if you have been following the series from the last one and you’re here right now, it means you either didn’t find your own reasons in the first article and you hope to see it here or you found just a few of the last reasons relatable and you have corrected them but you still want to stick around for more tips on what to change to improve your trading and profitability.
Either way, I think it’s a smart decision to keep up with the series, so let’s dive right into 4 more reasons why you are not making profit:
5. You’re Trading a Clueless Robot: Personally, I think the whole Idea of buying a robot to improve your trading and profitability is practically the same with giving someone your money to trade for you which I consider to be a careful decision.
You need to be sure of the strategy behind the robot and if it fits well into your expectations, risk appetite and profitability plan.
8 out of 10 traders who have shared their robot experinces with me, simply opted in for this option because they understood the power of forex trading and how it can give you unexplanable amount of profit but they didn’t really have the technical skills to do this and didn’t have the patience to learn it either.
Robots are designed by traders like you with a little more level of experience and its more like putting their strategies into an automated process that is expected to replicate similar results to your account.
But not all robots are useful and when you find one that works it may only do the job for a short while because trading strategies require constant reviews and optimization, so you can’t afford to stick with a robot that does the same thing over an over again, it will only take a while before it starts churning out losses.
So if you are newbie, It will be easier to sell a useless robot to you, because you know nothing about Forex trading and the seller understands that you’d do anything to earn from the Forex market.
Therefore, I recommend that if you are a newbie, learn how to trade first, so when you see a useless robot, you can identify it and also if you are a trader it’s best to understand the strategy or indicators behind a robot otherwise don’t use them, because your account is not a test site!
6. Your Money Mangement is Weak: If you still find yourself burning out your accounts in a trade, your monet management is very weak and somehow you may be a gambler.
For every account size, you should follow a set of trading rules that should help you manage your capital as you trade. The truth Is that knowing how to trade is not enough because the fact that you can anlyse correctly does not guarantee a 100% acuracy or profitability and the only way to protect your capital is to prepare for the losses that may arise at any point in time.
Always ask yourself, my current trades goes sour, how much will I lose? If this figure exceeds 20% of your account as you trade at anytime, then you may need to rethink your decision.
While I recommend keeping your limits to 20% yours could be more or even lesser because I understand that our risk appetites are different. However, the most important task here is to ensure to map out a loss limit and make sure that you stick to the plan as you trade.
7. You have not Fitted Your Trading Plan into Your Daily Lifestyle: Imagine setting up a plastic table with detachable legs, if you ommit one of the legs nd just clip in 3 legs, it may stand for a while, but as soon as you put anything with weight on it, it would come crashing to the floor and throw off whatever you put on it.
You need to trade consistently to make money from the Forex market, you cannot afford to be here today, gone tommorow and expect to make money from the market, because you need to place actual trades to earn profit.
The reason why you are not consistent with trading right now is not because you are actually busy, but because you have not put your personality and available time into your trading plan.
If top successful traders have time to trade then you shouldn’t take no excuse from yourself rather match your time to the opportunites available and make sure to use them.
For example, if you do a 9-5 job and you have a 30 minute commute time to work, you can fit your trading plan to trading sessions which open around 7- 9am, analyse in transit, take a positon for the day and because you know that you would be busy later in the day, you can already have set your stop loss and take profit so that you do not have to consisitently check the charts.
Now that’s just an example, your own spare time could be at 1pm during lunch or 9PM just before you go to bed. All that matters it that you get to choose a convient time to trade more consitently and in turn earn more from the Forex market.
8. Not withdrawing your profits: If you made profit, withdraw it and enjoy the fruit of your labor!
Some times when traders say they arent making profit, it’s not entirely true, some times traders begin to groom the idea that they can build an account to billions, the truth is yes it happens but it takes patience and alot of commitment as a trader and in most cases only portfolio managers can do this.
There’s a satisfaction that you get from making profit and actually that is when you can truely have a sense of profitability.
So the next time you are tempted to keep that profit, remember that you can lose it the next minute, so learn to enjoy your profits while you can.
Have you found the reason why you aren't earning from Forex yet?
If you have found some of the habits that you have that may be stopping you from making money in this series or the previous? I hope the tips shared here would help you change those habit, but if you are looking to speak to me on it and finding a fix or mentorship that can help you get back on track then leave a comment below and I will attend to them swiftly.
If you have identified some of your mistakes, that I am yet to cover and you'd like to hear my thoughts on how to fix them, then also leave me a message and I will recommend the best way to fix them so that you can start to make money from Forex steadily.
The truth is at the end of the day, you're in this market for profit and if you're not makinh consistent profit there is a problem and you can fix it now!
I'd like to help you fix yours, make sure to leave me a comment below.
The next series will open up more mistakes that you may be making and how to fix them and get back to making money from the Forex market.
Stay Tuned and Happy Trading This week!