The majority of the traders and people comes with the negative misconceptions that their trading account will be wiped out in no time; you will never become successful, if you have this misconception.
You don’t get involved in FOREX trading just because you are not at all disciplined or just because you are greedy. Hence, the discipline and greed factor are the major key attributes that you require at the moment.
Before starting to trade in live account, you need to practice with the Demo account first as any trader don’t want to lose the money first and blame the FOREX industry for such a careless step. Hence, before investing, you have to learn the techniques of the industry as a stepping stone to become a successful trader.
We have highlighted a few points below that help you to avoid the negative fallout while trading in FOREX or any type of OTC industry:
The above figure helps you teach discipline and other key attributes while trading in FOREX industry. It helps you to place the stop loss (S/L) and Take profit (T/P). As we have seen that the profit ratio on every single trade is 20 to 25%, but as in the case; if the trader expects the unreal of getting double money on every trade they put then they will be wrong 90% of the time.
The ratio will help you to be disciplined in your trading habits and hence accordingly it also help you to place the profitable orders as per your risk taking abilities.
One of the key contributing factors to become one successful trader is to manage and recover the losses every time if there are some bad and faulty trades and it will also help you to put the winning order to grow in time.
Hence, most of the times, the traders seemingly fail to learn from their mistakes. Therefore, in order to build up the large profits in trading, they don’t realize the risk management skills and hence potentially their trading accounts get wiped out in no time.
It is generally seen, that several traders have suffered a huge loss because of their arrogance and overconfidence. Hence, sometimes we need to accept the loss before our accounts totally get wiped out blaming the industry, perhaps…..!!