There are certain experiences that are the same across the board in the forex market for new traders. Most individuals who have recently completed their forex training face the same kind of things in the forex market.
The notable aspect of these things, however, is the fact that while experienced traders take them for granted, for new traders they become crucial experiences. Unfortunately, many traders are unable to cope with these new experiences to a point where it affects their view of the market, their view of their own capabilities, and even their view of life in general.
You must not let your new experiences of the forex market from adversely affecting what you have learned in your forex training or even what you have learned in life. Knowing about these new experiences in advance should help you in this a great deal.
Getting Stopped but Being Proven Right
New forex traders always end up making little mistakes because of either gaps in their forex training or from sheer excitement or anxiety. What this means on the ground level is that these traders’ positions get stopped out but their projections turn out to be right.
A very common reason why this happens is that the trader lays extra emphasis on analysing the market but misses out on other key elements such as trade management and money management.
Missing Out On Opportunities or Profits
A balance needs to be struck in the forex market and this is something that most good forex training programmes teach new traders. Even with proper training, it can be difficult to attain that balance in the live market. Effectively, some traders are so cautious and careful about their foray into the forex market that they either miss out on some profits or miss out on opportunities altogether.
Staying in Too Long to Lose Profits
As traders try to correct the mistake of being overcautious, they become overactive in the forex market and try to implement everything they learnt in their forex training simultaneously.
Resultantly, they start leaving their positions open longer and longer to squeeze out as much profit from the trend as they can. However, sooner or later, this results in a trend retracement which means loss of profits.
Sticking to a Trade In Hopes Of a Turnaround
Forex training programmes always teach individuals about the ebb and flow nature of the forex market. Unfortunately, some traders take this too much to heart and start riding losing positions in a bid to see the trend turn around. When this happens, the trader either has to realise his mistake and close the position or have a blown account.
Being Too Scared to Get Your Feet Wet
Sometimes, traders complete their forex training but are so uncertain about their capabilities that they spend more time in demo accounts that are necessary or recommended.
Thus, they not only take extra-long to enter the forex market but are also severely limited by the time that they do because of the bad habits that they picked up during demo trading.
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