Beware of these 7 Forex Business Obstacles
Every type of business or business always has challenges and obstacles that must be faced by the perpetrators. Likewise with a Forex trading business that might seem easy to just buy and sell, but sometimes it’s not as easy as expected. The following are 7 obstacles that are often experienced by traders in the Forex business:
Not familiar with forex business
The first obstacle for traders is if they are not familiar with the Forex business at all. For this reason, if you are going to jump into the world of Forex, make sure you know about this business first. If you already know the business then you can find out how it works. To find out about Forex and the whole about Forex, you can use internet media or you can also read books about Forex.
Market movements are out of control
The second obstacle is about market movements. As we know if the main players of the Forex trading business are big banks around the world. They use trillions of dollars of funds every time they make transactions that affect market movements. This is what makes us unable to guess the market movements, not infrequently, market movements are far from our expectations. This business is different from a real business, for example, we have a store. With this shop, you could say the market is in our own hands. We have complete control over our store market. Want to be quiet or crowded all depends on our own hard work.Whereas in the Forex trading business we cannot determine or have control over the market. Even not infrequently market movements are beyond our control. What we can do to prepare and anticipate all the worst possibilities that can occur is to have risk management and money management
The analytical style of each trader is always different, depending on the personal trader itself which will eventually lead to a trading system. If you have an unfavorable analysis style, it will certainly affect the profit-loss of your trading business. How to analyze a good business is to use two methods, namely
Predict the direction of price movements
This is because in the Forex business the data used is data history. In other words, if you know the pattern of price movements, the next direction of price movements can be predicted
Predict the limits of price movements
This limit is very useful so that traders can manage entry strategies or transaction strategies well
Don’t have a trading system
The trading system includes when to trade, size or lot per transaction, rules when determining the mask and exit the market. As we know if profits in Forex trading are not obtained from guessing. A trading system is a thing that is definitely needed so that the funds you invest can develop instead of disappearing. Well from here if you don’t have a trading system, of course, you already know what the consequences are.
Compare the analysis yourself with the analysis of others
Almost every trader does this because according to trader A the analysis is more accurate and better than other traders and vice versa. Actually, every existing analysis is good, it’s just that in the Forex world the timing or entry time for transactions that will prove the efficacy of the analysis. In the Forex world, there are lots of Forex analysis arguments. This is what can make traders confused and lose confidence to transact. Finally, there are many traders who only become followers and rarely do their own analysis
Do not use money management
In the world of risk management trading is arguably the key to success. The function of risk management is not to generate profits but to protect the capital you have. So even though you can become a very skilled trader without good risk management you can fail. The solution that you can use to overcome this problem is that you can get reasonable and reasonable benefits. Use a reasonable lot size according to the capital you have
For those of you who have plunged into the Forex world, the word indicator is certainly a familiar thing. Likewise, the types and types of indicators themselves start from the indicators provided by the MetaTrader software to the homemade or other indicators. Actually, there is a misunderstanding about this indicator because there are some people who run a Forex business based on indicators. You need to know if the indicator does not form a price movement otherwise the price forms the indicator. For example, for example, the Moving Average indicator whose function calculates every average price movement. Moving Average is taken from a simple math count that functions to see the average of a data but from the accuracy level, it does not reach 100%. But today most traders are based on indicators and if they experience losses they blame the indicators they use.