How to Stop Losing Money on the Forex Market
For traders who have been trading forex for a long time, they don’t expect to make millions of dollars overnight, but all they want is to stop losing money on the forex market and start running trading accounts better. There are many mistakes made by traders in this situation, and this article will discuss the top 5 things traders can do to change their accounts and performance in order to stop losing more money.
How to Stop Losing Money on the Forex Market
Choose the Trading Method and Perfect the Method
In many cases, traders who come to the Forex market only aim to make a lot of money in a fast time! To achieve this they begin to pursue the ” Holy Grail ” which will give them wealth. Instead of looking for methods that will give them success gradually, they look for cool indicators that will do all the work for them. If you want to make money on the forex market, get rid of this thought and start learning the right method.
One method that can be used to achieve success is Price Action trading. Price Action trading has existed for a long time and will not stop working whenever market dynamics change. Price Action trading involves traders who learn to read raw prices on a chart, and focus on Price Action patterns that have a high probability and repeat themselves. Price Action is a very simple method so that most traders can master it with a little help and proper education.
Once a trader chooses a method that suits their trading style, they must give up on the idea of the “Holy Grail” and start perfecting the trading method they choose. Exchange methods and trading changes will only cause confusion and frustration. So, the only way to perfect the trading method is to commit to it, and practice it until you perfect it!
Learn to trade at a higher time frame
Many traders misunderstand that the lower the time frame chart, the more opportunities to trade and make money. While it is true that traders will get more signals when the lower the time frame chart they experience, but it is also true that the lower time frame, the more false signals appear. This means that it is increasingly difficult to make money.
One of the best reasons why a daily chart is far more powerful than a time frame graph is because the time it enters makes a signal. An example is the inner bar. If we look at the inner bar on the hourly chart, we will know that the price cannot go out of the previous candle range for 1 hour. However, if we look at a bar in the daily chart, the price has passed all trading sessions including the UK and US sessions, and cannot go out of the previous day’s range. Obviously a candle with 24 hours of information tells us more than a candle that only consists of 1 hour of information!
Stop staring at the chart all day
The habit of glaring at charts throughout the day is a serious mistake that many traders make. If traders look at charts throughout the day and don’t do anything, this will be fine, but from looking at the charts all traders start making mistakes like, entering trading at an inappropriate time, leaving trading when they should remain in trading, taking advantage when they shouldn’t and some other mistakes.
When a trader is committed to trading daily charts, they only need to see their charts once a day. When the market closes on that day traders must switch from the chart and look for the possibility of another trading set up. If there is no trading, turn off the computer and do something else!
There is nothing more you can do. The market continues to move and will do the same whether you see a chart or not. Walk and let the market “do its job”.
Only Trade With the Money You Can Risk
The next way to stop losing money on the forex market is to use just enough capital. In the forex market, fear of money means losing money. Traders who place trading fearfully should be more willing to make money for donations only.This is because traders who feel scared will do all kinds of psychological errors and cause money to disappear. The only money that must be risked on the Forex market is money that traders can transfer to lose. Traders must not risk the money they need for their children or for their daily needs.
Some people will say if they only have $ 100 for a trading account. Many brokers offer mini accounts and micro accounts that will let you trade with a risk of only a few dollars and continue to learn to do the right money management. Over time, you can add money to your account from savings then start building your account.
Work with your mind
One of the most visible problems in trading is the trading psychology side. Many traders concentrate days on their trading methods or systems. This is why many people fail in the Forex business, and as long as they don’t work with their minds, they will continue to fail.
Many of the mistakes that traders make are based on how they think about their markets and trading. If the trader does not have the right mindset and way of thinking, Forex will forever be a hard struggle. Traders need to focus on aspects of trading and start learning everything they can. Reading books and blogs from professional traders is the best way to stop losing money on the forex market and overcome skills that you can apply to your own trading.