FOREX TRADERS

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False confidence is your biggest enemy

Have you ever heard when traders have been making money in Forex and try to make a big trade and win a lot of money? They could not pull off this trade in Forex market and they lost a big amount of money. If you have not heard this by now, you will hear this as it is very common in Forex. We have met a lot of people in Forex who once were making a lot of money. Greed got into them and they could not but help themselves by making a big trade in the market. The reason they have placed this trade in market is a false confidence. Today’s article is going to tell you about a lot more about this false confidence that traders face. If you do not know how to remove this confidence from yourself, you will never be successful in life. You will be living in an alternate reality and the trades that you will be making will be on your false confidence.

It triggers your death traps
Life is not such big and we have ended many good traders who have ended in the market by losing all of their money. They have started in Forex and they begin to make good amounts of money. It is important that you know that making the profit and making the consistent profit is not the same. Every trader makes the profit in Forex when they place trades. Then why are they not success in Forex? It is because they do not make a consistent profit. They make a profit of some dollars and after many trades, they have lost more than they had made in the market. When the traders begin to make consistent profit in Forex by a small amount, they become confident that they can make any amount of profit in their account.

They are making a small profit because they are making small trades. When they become false confident, they begin to make big trades in Forex. They do not understand that it is their enemy and if they do not stop this confidence from growing, it takes them into the death traps. We have seen many traders who become overconfident and they blow up their account. They were doing the right trades in Forex and they were also closing them when it was the right time. When they become false confident, they do not know what they are doing and they place trades to lose money. If you want to master the art of exchange traded funds trading then you need to learn a lot just like the experienced UK traders. The more you will learn about this market the easier it will become to understand its nature.

Assess your risk tolerance level
Every trader has different risk tolerance level and based on that they should calculate their lot size. Those who are trading with the reputed broker Saxo always limit their trading risk by using the various technologies. You might be thinking about the key ingredients to limit your potential loss in trading. The answer is very simple. As a currency trader always do your technical analysis in the higher time frame. Use the daily time frame to find the key support and resistance level. Once you have your trading levels wait patiently for the price action confirmation signal to execute your trades. But don’t think that price action trading system is the best way to trade this market. You need to create your unique system based on your demand.

As a trader, it’s very important to have a high level of confidence. But this confidence must be legit and proven. You need to develop your confidence level based on your trading performance. Assess your trading result once in a while and make necessary changes to your existing system to increase your profit factors.