WHAT IS THE MOST IMPORTANT FACTOR IN FOREX TRADING NOWADAYS?
Most Forex traders often practice very good trading with demo accounts. However, they are at a loss for the real deal. According to statistics, up to 95% of traders suffer losses in the Forex market. Why is this number so high? To answer this question you need to know the most important factors in Forex trading, from which you consider what are yourself missing and this is the answer for you.
Here I will share from Mr. Fanara Filippo of BRKV Forex the common reasons leading to failure in Forex trading and how to prevent it.
Most people who lose money in the Forex market are beginners. The reason is that they lack experience. Before participating in course, you need to have all the basic knowledge, causes of changing trends, market analysis skills…
However, there are no books or schools to teach you battle skills on the marketplace. Maybe you understand everything but that is still not enough, until you put real money on the trading desk, there are many psychological factors that make it no longer theoretical.
To solve this problem, brokers provided traders with demo accounts so that they could experience real trading without any capital risk.
Using demo account
According to Mr. Fanara Filippo, a demo account is not much different from the real account. It is provided by trading platforms such as Metatrader, Trade station… and there is a symbolic virtual currency available to help traders experience the use of trading platforms such as placing command orders, close orders, perform market analysis, master the tools that can be used on the platform as well as experience the services of brokers.
However, you have to follow many different rules so that the demo account is a useful tool to practice: Please choose the capital that is similar to the amount you will have on your real account; Try to imagine that the money you have on the demo account is real, as is the profit and loss; try to grasp the core elements of the trade while using the demo account.
Lack of a clear plan
A trading strategy is the most important factor in forex trading, it makes trading much easier and more active. There are two common mistakes found in traders: Using someone else’s strategy; many traders initially have a very careful strategy, but when the market deviates slightly from their plan, they immediately forget their strategy. In the strategy, there must be goals and plans for each of your transactions: