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Posted on Jun 01, 2022 at 10:09 AM
You, like me, enjoy profits and despise losses. Imagine a loss-free and spotless Forex trading experience... Is it possible? Why do losses even occur in the first place? You're about to find out!
Chances are that you began trading the Forex market for either of these two reasons: To make extra income and/or just for the fun of it.
Either way, I am pretty sure that you hate to make losses and love profits, but can losses be totally avoided?
I know you must have encountered the phrase "Forex Trading is risky" countless times.
It's not difficult to figure out why this is.
Forex trading and the Forex market, in general, involve a certain level of speculation, volatility, and a range of other factors, all of which result in losses.
Because the Forex market isn't completely risk-free, the most crucial question to ask is: "is Forex trading worth the risk?"
Life itself, including unrewarding activities in our everyday life, involves a considerable amount of risk.
How much more are the rewarding activities that bring in our daily income - like Forex trading - if routine and mundane tasks in our everyday lives already carry a measure of risk?
Before we unequivocally define whether Forex trading is worth the risk or not, let's take a look at why traders lose money in the Forex market first.
POOR MONEY/RISK MANAGEMENT: Having several years of Forex trading experience is not enough. To be a good Forex trader, you need a thorough understanding of money and risk management, as failing to do so will cause you to lose money quickly.
Money/risk management is an important part of your Forex trading survival kit, and while you're busy building a winning trading strategy, make sure to back it up with sound money/risk management to preserve your trading capital effectively.
UNREALISTIC EXPECTATIONS: Forex trading is not a get rich quick scheme and the only way to become successful in it is by being patient and consistent.
Having unrealistic goals is not the way to go!
Forex trading is a marathon, not a sprint, and your overall performance, not a single day's performance, is what counts.
Don't become so fixated on making high profits on big trades that you get caught off guard and fail to reduce your overall market exposure per trade.
Slow and steady wins the race, remember?
REFUSING TO ACCEPT YOUR LOSSES: As you are trading the Forex market to make profits, it's equally important that you take total responsibility for any losses that may occur too.
Accepting responsibility for your losses will allow you to spend less time and energy moping over what you've lost, and more time picking yourself up and moving on to the next trade, which may be far more profitable than the current one.
The next time you lose money in a trade, don't beat yourself up over it; simply shrug it off and move on to the next one since there is plenty of fish in the sea.
Go catch 'em!
In Forex trading, the goal is not to totally avoid losses but to ensure that at every point in time, your overall profits exceed losses.
One way of ensuring that your overall profit exceeds your losses is by taking full advantage of trading support tools and services that work and discarding those that do not.
Trading support tools like trading signals, training, Forex educational webinars, trade audits and more, are some of the support services we offer on the InstaFxNg platform that is trusted by thousands of Forex traders all over Nigeria.
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