Death by a thousand cuts in the trading profession

08 Mar

Many people are wondering how this article can come up with Forex ideas. There are many things in this industry that investors do not have ideas about. This is the most amazing and most lethal sector that can slowly kill the traders, yet they will not understand why. This article will tell about one important concept, how investors slowly lose the capital and bleed to death. We are not going to be dramatic but it has happened to many people. The trends look predictable but are not, the movement seems perfect but risky, and the indicators are helpful but do not give the correct prediction, all these things only makes the decision harder.

Death by a thousand cuts implies that you are digging your own grave. You do not realize until there is no time left. Most investors like to trade smartly but the decisions are not good. Either they will follow the groups to avoid the analyses or they will use paid signals to make a good amount. Doing these slowly drains the strategy and skill, making them a robot. It is like having thousands of small losses that become big and end the career. We believe we have got your attention, this article should be read with concentration. The more you go through this concept, it will be easier to realize the mistakes. There are many traders who have gone through the same stage.

Be content with small rewards

The first indicator is this death is, becoming content with small profits. Though a novice will always get the strategy for a small amount, it should not be always followed. Try to understand the risks, every time there is a change of patterns. Losing happens more than the chance of profits comes. This increases the risks of losing the capital, even though there are many small profits. Imagine you have won $20 in 15 trades. The average reward is close to $1, but if one trade cost 4 dollars, it will only take four trades to lose the profit. All the achievements will be washed away. If the strategy was developed and set to make more money, this could have been avoided. They slowly dig their own grave by having small wins that cannot cover for the money lost.

Try trade with discipline

The disciplined traders in the Forex trading industry always manage to make a profit at the end of the month. Due to their risk management skills, they are able to embrace losing trades on regular basis. Changing your life based on trading currency trading business is a very challenging task. Unless you become a disciplined trader, you are going to lose money like the majority of the traders.

A small mistake is always happening

If there are no flaws, people are not learning anything new. This is the way the industry works. Always try to make a good strategy but never make the same mistake twice. It can be a small flaw in the position size, or a careless mistake in the planning or forgetting to set the stop-loss. The sector is live, every moment is important. Give the best performance possible to increase your level of success.

Following groups

The groups try to make the best possible strategy, talked with the members but still fail. It is because they are looking to chart more than using indicators. Every person has different views but as the money is deposited personally, it is smart to trade with your own concepts. Greed continues to persuade the investors to listen to the advice to avoid the analyses, they keep doing the thing over and over until the capital is lost. It is a thousand times wiser to lose own money by making own decisions than to lose it following someone else’s strategy to the letter. 

Overtrading

The traders overtrade but do not stop, until the account is closed. The brokers will not hesitate to close your account if you do not learn when to stop. If this occurs, slowly the profit begins to be lost. A few trades are successful but the failures are bigger. Never overtrade as it can drain your capital and your profit

Photo credit: Truthout.org on Visual hunt / CC BY-NC-SA

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