You need to know that just like many other businesses that promise great profit potential, the forex trading business also requires time and patience to gain the success. This is probably why not too many beginners can really master the forex trading business on the first try. Besides, there are some factors that make your trading fail.
Check out these factors that make your trading fail:
Fear is a natural reaction that we show to a threat that can harm us. In fact, this fear is also considered as an important thing for our survival. Without fear, it will be difficult for us to see the danger and avoid danger.
On the other hand, that fear can be a dangerous thing, especially if the cause of that fear pushes us to make an irrational, and unreasonable decision.
Instead of motivating traders to trade without emotion, fear often triggers traders to stay away from trading. Moreover, fear also ultimately triggers traders to blame all the analysis and the time they have spent searching for entry opportunities. Worse yet, this often leads traders to the more adverse trading side.
Another type of fear is the fear of missing out on good entry opportunities. It often makes traders open positions at any price, and without waiting for profitable trading opportunities. A trader who has fear like this also often neglects to trade rationally and is more concerned with his ego.
The last type of fear, and even more dangerous, is fear of loss. This fear will cause the trader to psychologically fear, and give a horrible picture of trading even before making a trading decision.
Did you know that greed in forex trading is something more dangerous than fear? This happens because greed is a selfish emotion that drives you to always want huge profits when trading. According to FX Street, greed is often considered the most dangerous emotion for traders.
Although profit is the ultimate goal of a trader, the profit to be achieved certainly must be rational. In the end, if a trader prefers greed in trading, then it can become a double-edged sword that can destroy his trading account at any time.
Writer: Fenda Agustina