FX day trading is very difficult, so many people lose. There are many people who can’t win even in stocks. First of all, in day trading, there are many cases where you do not aim for a large price range, and most cases are short trades. There are many cases where even if you earn money steadily, you give up in one go, so you need to take care of your mental health.
Characteristics of people who lose every day in FX and stock day trading
The characteristics of people who lose every day in FX and stock day trading are limited to the following cases. In fact, it is not that difficult to come up with a countermeasure because it is a pattern. When you are not winning, you cannot continue trading, it does not go in the direction you expected, and you lose. Even if you read books or blogs and analyze the important things and the reasons for losing, you will not be able to win. You will only lose in the same pattern and reduce your assets, so there is no good point in talking about it. This time, I will explain the thinking of those who make money and put it into practice. If you try to make such perfect trades, you will fail.
beginner
If you are a beginner who is not yet used to trading, you will lose whether it is day trading or swing trading. The reason is that you do not yet understand the chart patterns, and in most cases you do not really understand how the charts move. First of all, you should focus on getting used to trading rather than winning or losing. Anyway, first of all, get used to trading. Whether buying or selling, look at other past charts and find a way to win. You can view the board for stock prices and other things for free. Your mind and mentality are also really important, so train them at the same time.
mentally disturbed person
A steady boom is exactly the result of day trading. Day trading is based on short. I aim for a small price range, but even if my winning rate exceeds 90%, I end up losing a lot in the last 10% and often end up losing on that day. Especially on days when day trading is negative, there are many cases where people are psychologically impatient. Professional traders are often mentally impatient, so they often start strange trades and lose a lot of money. People who are mentally impatient are prone to this tendency.
annoyed person
People who are irritated also tend to be absorbed by the market. When it goes backwards, blood rushes to your head and you enter emotionally, which can lead to even bigger losses. Day trading is a mountain of loss cutting. If you get frustrated there, you will be swept away by the waves of the market, and you will be taken forever. If day traders are influenced by their emotions, they will not be able to judge the situation and will only repeatedly reduce their funds and lose money. If you keep incurring losses and don’t reflect, your chances of growing will decrease. It also wastes time.
person trying to get back
Some people try to make up for the slightest negative balance by significantly increasing the lot size. However, this is not recommended. If the balance goes against you, the loss will be huge. The stronger your desire to make up for the loss, the more you will increase the lot size, resulting in huge losses. Trading is always subject to stop losses, and of course all your money will disappear, making it difficult to make a living or even a side job. Even professional investors can become poor at placing orders without reading the current trends, and will end up averaging down.
Day trading has low profit margins
The biggest problem with day trading is that the profit margins are very small. Since short is the basis, it is not so easy to make a big profit with one trade. A single win in day trading is not very profitable, so a single big loss can wipe out a day’s profit. Therefore, there are many trades, and there is a disadvantage that it is easy to see the chart all the time. Professional traders tend to look at charts.
stop loss and take profit points
There are many cases where people who do it steadily do not have a loss cut point and a profit take point. There are many people who take profits when there is even a small unrealized profit, and endure when there is an unrealized loss. Instead, we recommend that you decide your risk-reward ratio before entering. If you set it at 1:2 or more and decide the loss cut point and profit take point in advance, you will not be in trouble. Loss of hesitation makes it easier to cut losses.
Swing trading also has disadvantages
I explained the disadvantages of day trading, but swing trading also has disadvantages. A swing trade can make a big profit if you get a price range once. However, in the case of swing trading, the number of trades tends to be extremely small. There are many people who cannot create a trading rhythm, so it is difficult to say whether swing trading can be generally recommended. Therefore, it is ideal to do swing trading as well as day trading.
Manage your funds
Funds management is also important. Even if you study, it doesn’t mean that you will win if you buy in a rising market. Risks occur in categories, so be sure to decide the lot size for stocks and stock investments before you do it. For reference, there have been wars recently, so for some reason there can be big fluctuations. Be sure to know the information when holding for the long term. There are cases where you mistakenly think that the price is rising even though it is falling in a bad way. Cut your unrealized losses at 2% of your total funds. There is a lot to learn and decide by participating. If it’s short-term, repeating the same rules for each one will solidify your stock trading style quite a bit.
I don’t care about the income and expenditure of the day
People who lose every day in day trading are people who are obsessed with whether that day is a win or a loss. If so, it is important to trade without worrying about the balance of the day. A monthly total plus is more important than the immediate income and expenditure. More importantly, it is even more important that the total is positive in one year. It all depends on whether you can trade in the long run. At first, the amount of money will of course decrease, but by the time you realize it, your knowledge will improve and it will start to increase. The content of the work will also be enriched.
XM is recommended
XM allows you to trade not only precious metals, virtual currencies, and stocks, but also foreign exchange. They have also introduced KIWAMI, an account type with narrow spreads. Therefore, it can be said that this is a highly recommended FX company for trading. Honestly, if you hone your skills and get the hang of things, you will be able to see the timing and you will certainly be able to increase your assets. Those who achieve good results will also be the best at risk management. Be sure to pay attention to these things when you start.
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