Demo trading the market is really easy. The new traders can easily start making consistent profit in the demo environment. But after switching to the real trading account, they start losing money. When they start losing money, they don’t understand the fact, that they are losing most of the trades due to their lack of knowledge. Few indicators tell you are not ready to trade the market. If you find these symptoms, you must learn to trade from scratch. Let’s find out these factors.
Having a tough time to find the trend
Finding the trend in the Forex market should not be a tough task. The majority of the retail traders often say they know the perfect way to find the trend. But if you focus on their analysis, you will be surprised to see how wrong they are. If you are having a tough time to assess the market trend, you should start trading in the demo account. To find a trend, you need to use a simple trend line. However, you can also rely on 100 and 200 days SMA. No matter which system you follow, you must have the skills to find the major trend in the Forex market.
Breaking the rules
Some of the retail traders know the details but still, they fail to make a profit since they break the rules. Breaking the rules in the Forex market is a very big mistake and you can’t make any real progress. You need to write the rules in each trade and trade the market with proper discipline. If you find it hard to follow the rules, you don’t have the maturity to trade. To develop your skills and patience level, you must start demo trading for another 3-4 months. But never trade the real market without having enough maturity.
Executing random trades
After funding your premium Forex trading account, you might feel the urge to execute random trades. The new traders lose their trading capital since they keep on executing random trades without analyzing the market details. But if you look at the skilled trades, you will not find random execution of the trades. They are focused and they know the perfect way to place an order. You need to control this urge at any cost. If you fail to do so, you are still not ready to trade the Forex market. Train yourself hard before you start to deal with real money.
Following the herd
No one in the world knows what will happen to the price of a certain asset shortly. AS a currency trader, you must look at the long term goals. If you fail to keep pace with the changes in this world, you are going to lose most of the trades. Take your time and try to understand how this market works. Never think you can beat the market without doing the hard work. Focus on your skills and stop following the herd. Unless you can find the trades by yourself, stop trading the real market.
Taking too much risk in each trade
Few traders take too much risk in each trade. They want to earn more money and want to become a millionaire. If this is the case, you need to stop trading the market right now. Unless you are aware of the fact, losing trades are very common, you should never trade the market with real money. Think about the long term goals and try to improve your skills by following some basics concepts. At times you might get lost and become emotional. But this is the sign of the immature trader. Unless you can control your emotions, you won’t be able to trade with discipline. And breaking discipline is another key reason to trade with high risk. And this can cost your investment.