Traders are independent business people. Due to the nature of this business, we don’t have any competitors. But if you dig deep, you will find that traders have many enemies. But don’t worry, these are not the enemies that are holding big guns to kill you. If you can follow the key steps and logical steps, you can beat these enemies in the blink of an eye. But to become a better trader, you have to learn the proper way to deal with the complicated nature of this market. Let’s learn more about the worst enemies of a trader.
Greed is often considered to be the number one reason why rookies are blowing up their trading account. After winning trades, amateurs in Hong Kong become overconfident and try to take trades with aggressive steps. They want to earn huge amount of money without doing the hard work. But if you take a look at the elite trader, you will learn that trading is not as complex as it seems. They always control the greed and they focus on managed risk. To survive in the trading industry, you can’t take trades like a greedy trader.
An emotional approach can make a perfect trading strategy worthless. To survive as a currency trader, you must learn to deal with the emotions in a very effective way. Taking trades and trying to earn millions is a very complicated task. The elite traders always maintain a peaceful trading environment because they know the proper way to control their emotions. In the Forex market, you can’t trade based on what you believe. You need to trade based on what you see. Having the ability to control your emotion is a very big advantage. In fact, this will allow you to make the right decisions at the right time.
Using the lower time frame
Rookies love to trade the lower time frame. But if you trade the lower time frame, you will end up by over trading the market. Overtrading is a very serious problem and it is one of the most common reasons why novice traders are losing money. In order to ensure the safety of your trading capital, you have to follow the core concepts of trading. Never try to take trades with aggressive steps by using the lower time free. Learn to analyze the daily time frame so that you can take trades without any issues. Things are really boring when you are analyzing the daily time frame data, but it is the only effective way in which you can earn a huge amount of money.
Stop chasing the trend
If you miss a good trade, you shouldn’t chase the trend. Chasing the trend makes you frustrated and it is one of the biggest enemies of the trader. The market will always present opportunities. If you fail to take the opportunity, there is nothing wrong with it. You have to follow the basic protocol and take the trade with discipline. After you learn to let go of the golden trade setup, you will learn nothing is perfect in this market. Always be prepared to expect the unexpected. Only then will you be able to survive as a currency trader.
Believing the herd
Rookies always believe in the actions of the herd. Believing in the herd is a very big mistake. We know that the majority of the retail traders are losing money, so if you think that you will make a big profit without doing the proper market analysis, it will be tough to earn money in the long run. You have to focus on rational profit. Only then can you change your life. Trying to earn a huge profit and ignoring the core factors of the market is a very big mistake. So, try to limit your risk exposure and trade with discipline.