A common characteristic of FX traders who lose is a lack of experience and skill, but why can’t they win? Beginners study hard to build up their skills and experience, but for some reason, the more they study, the more they lose. Why is this?
Does your chances of winning decrease when you study?
It is common knowledge that the more you study, the more knowledge you will gain and the more likely you will win. In fact, in trading FX, stocks, virtual currencies, and other types of trading, there are many cases where the more you study, the less likely you are to win. Here are some reasons for this: In order to win big in the market with investments, limit losses, and make profits, it is important to manage your funds. If this is difficult, you may lose big somewhere. When you start, make sure to analyze carefully when you have time. It is important to fight with content that reduces risk.
Unable to establish a trading method
Trading beginners tend to try all trading methods in order to absorb a lot of Forex information. You can know that there are various ways to fight, but you can only do half-baked tactics for any method. As a result, no matter what method you use, you will lose.
unnecessary information
In fact, there are many traders who have graduated from junior high school or high school among FX traders. Academic ability is not necessary for trading, but I study hard to acquire various financial knowledge. Of course, you need to study, but sometimes you think too hard and take in too much information that you don’t need for trading.
Only study, don’t practice
It is common for beginners to become obsessed with studying. This is a very bad thing, and trading such as FX is meaningful only after repeating the actual battle. Therefore, just blindly studying will not help you win. Trading is meaningful only when you have actual battle experience. If you don’t do this, you won’t be able to win even after 10 years. Even if you read a lot of books, it will end with empty theories on your desk.
Forex does not follow the textbook
If you want to study in earnest, you often study from books. The charts you see in books don’t behave the same way they do in real life. Therefore, there are many cases where you can not win even if you practice as written in the book. So why can’t we win? It becomes a loop, and I don’t know what to do.
overuse of indicators
People who only study Forex want to put a lot of indicators on the chart. One or two indicators are enough. Unwinning traders’ charts are very cluttered and difficult to read. In this case, there are many cases where traders do not know what they are trading as indicators.
How to improve your trading
To actually win at trading, it is better to do the following. If you are only studying and have become big-headed, please reconsider. Effort is essential to make accurate and long-term profits in day trading. You also need to do it for a long time and use your head to adapt to new market conditions. It is important to constantly research and think in order to make money every day. It is difficult to make money in the short term, so get used to it and understand the market trends. Even if the profit is small, it is important to be very conscious of the rules and execute them calmly.
trade is simple
In trading, it is always better to simplify your trading. Trading does not require academic ability. Therefore, the simpler your fighting style and tactics are, the clearer you will be able to see whether you will win or lose, and the easier it will be to come up with countermeasures. You should also learn proper technical analysis by researching it online. For reference, professionals are well versed in the price movement patterns of currency pairs. You also need to verify the market in order to continue.
one method
One method is enough to win in trading. Just try one method and don’t try anything else. If you do this about 1000 times, you will gradually start to see the difference. You will start to understand the tricks. If you can imagine the strategy, you will eventually be able to live a stable income. A well-founded entry is important to achieve results. If you are currently in a doubtful situation, reconsider it based on past price movements.
Determining Take Profit and Stop Loss Points
Please decide the profit taking point and the loss cut point at the entry timing. A good risk-reward ratio is 1:2. If you decide this first, you won’t be lost and you won’t be in trouble where to pay.
Recommended XM
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.
| KIWAMI | Standard | Zero | |
| USDJPY | 0.7pips | 1.6pips | 1.1pips |
| EURUSD | 0.7pips | 1.7pips | 1.1pips |
| GBPUSD | 0.7pips | 2.1pips | 1.2pips |
| AUDUSD | 0.9pips | 1.8pips | 1.4pips |
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