Challenges in Manual Forex Trading
Forex currency trading is kind of difficult and is extremely demanding! Most retail traders fail 80-90% of the times in their journey. All traders attempt to make large sums of money using the high leverage given by the brokers. Leverage is a risky thing where you can make a lot of money quickly, or you can lose an amount of money even quicker. Many new traders lose
their first investment within the first two-month trading and in most case challenged to win the lost money back, by investing more. Forex Trading without proper techniques and money management is alike to gambling. You can take an example of a new doctor, he may have the education and knowledge but still needs two years of residency. Most traders have not the adequate amount of education, patient, and neglect the rules of money management.
The most investor who enters the Forex market is being drawn to the promise and hope of easy money. They are drawn by small initial capital and still managed to trade a large amount of money due to huge leverage offered by the industry. Naïve traders trade without any kind of effective trading plan, and they may be pushed by their adviser to open the real trading account using their instructors as introducing brokers. Most of the traders have no basic idea about trading software, how to use the charts, statistics or apply a detailed technical analysis of the currency pair they are investing. New traders should not be opening the real account after one or two years of demo trading practice and many practicing trades. During the demo trading time, it is recommended that novice traders should follow automated trading software simultaneously. A good trading software is the one that totally focuses on risk management, and is simple to operate and easy to understand by even an inexperienced trader.
Whether it is a naïve trader, or any experienced person trading in Forex market, they would make simple money management mistakes, and it is here that they fall miserably. Many-a-times the retail traders emotionally attached to their trades resulting in large losses. And this happens more with the new traders who shortfall the experience of controlling their greed, fear, and disciplines. After experiencing regular bouts of loss, new traders eventually lose the interest and finally give up.
In the lucrative world of Forex Market, things are not easy as they seem. Dynamic changes create the windfall or downfall for the retail traders. An investor can make easy and huge gains in a short period of time, but it is his consistency performance over six to twelve months that will evaluate his success. This radical also applies to Forex trading software and managed Forex accounts using manual trading or automated trading. All trading systems must be practices for at least six months before committing further investment.
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