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| Forex Trading pattern |
Have you ever had a bad streak in your trading and couldn't figure out what was wrong?
You've probably had a few losing streaks, but you've always managed to get back on your feet by making the required adjustments.
However, unless you can determine the source of the problem, rebounding back will be far more difficult.
If you're in this situation, the pressure to get back in the black is probably making it tough for you to figure out what the issue is.
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Instead of allowing anxiety to paralyze you, start by asking yourself the following questions:
- Is it possible that I'm trading poorly because I'm not sticking to my trading plan?
- Is my judgment tainted by my emotions?
- Has the market changed, and what do I need to do to adjust?
Aside from not sticking to your forex trading plan, additional issues, some of which are more typical among rookie traders, could be to blame for your trading downturn.
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The following are three of the most prevalent types of trading issues that rookies face:
1. Lack of training
Some rookie traders, maybe motivated by the prospect of making a lot of money, jump the gun and trade real money on a live account without first refining their abilities on a demo account.
A rookie trader should open a demo account first since an inexperienced trader can wipe out an account faster than you can say "margin call."
Demo trading, on the other hand, allows new traders to get their feet wet without risking their hard-earned money right away.
This helps them to get a sense of the market, make adjustments to their trade plans as needed, and practice risk management.
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Without proper education and training, you might be missing obvious cues from the market such as chart patterns, Japanese candlestick formations, or shifts in market sentiment.
2. Emotional trading
Even seasoned forex traders are prone to emotional trading on occasion. Emotional noise can take the form of uncontrollable dread, hope, or hunger.
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Overtrading, trading too large, cutting winning trades, and letting lost deals run are only some of the negative trading behaviors that result from these emotions.
3. Changing market conditions
The issue isn't always your trading psychology, but rather changing forex market conditions.
Even if you are extremely disciplined and follow all of your plans to the letter, if your trading strategy does not suit the market environment, you may still end up in the red.
There are a variety of reasons why your trade might be struggling. It's possible that you're trading poorly due to a lack of experience, emotional trading, or even shifting market conditions.
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Remember that identifying your issue is the first step toward resolving it. The more we can figure out what's causing the problem, the better we'll be able to solve it.
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