As a beginner Forex trader, what problem or challenges do you usually face? And what do you think would help you do better?
could not agree with you more antradingfx. the most important thing in trading is a clear risk management structure, that gives you a clear idea of what your daily loss should be and from that amount, you can structure the size of your risk and then plan the entry and exit levels.... most Retail trader do NOT understand risk or the risk they are taking, nor do they understand that a trade is planned before you even have risk.... as that way your account survives even the odd bad day... and you are around to fight another day, as we all lose at times but it has to be in sync with the account.... if you get that part right.. thats already a great first stepRisk management
if you don’t have that forget the rest
focus on getting robust set of rules for risk management in and you will be better than 90% of people
because 90% people focus on their entries exits bla bla when in fact all that is pointless if you don’t have a solid risk management strategy in place
That depends on what you want FX trading to be for you.... if you want to make money on a sustainable basis , you have no other choice than to learn it all... easiest way to look at it is... look at it as if it were your job (for some people, including myself it is my job) but what i mean is.... if you want to be good in something.. you got to learn all there is to learn to really reach your potential... as anything less, makes little sense unless you say it is just a hobby and if you lose small deposits you not bothered but that would be an odd starting pointIt is necessary to really look at how trading in the forex market will take place and that many problems will have to be faced.
I recently added some features to my trading style to deal with exactly this situation. I now define what I call a "transition level" in my trade. It is typically an ATR multiple of forward progress from the entry price. At the point of transition, I do 2 things: first I bring my stop up to breakeven, and then I optionally close a percentage of the position such as 50% (take off the table). Then I let the remainder of the position run free until it fizzles out. This situation you mentioned about trades swinging back to hit your SL is very common.Taking a trade that fits your parameters looks good moves into profit then swings back takes out your SL .
I am not a beginner. I have been trading for about 10 years. I remember my challenges that I faced at the very outset. At first, I traded on demo account. I made some money and I blew all of them. I thought if I trade with live account, I would not blow them. Thank god, I did not blow my account but I carried loss for about a year in my live account. I took some entries with very tiny lot without stop loss. Those losing trades held me back taking more entries. They floated for a long while and made me wast my time. Using Stop Loss at the right place and using them with every single trade are one of the toughest things beginners face.As a beginner Forex trader, what problem or challenges do you usually face? And what do you think would help you do better?
Newbies should develop a positive and serene mindset and focus on developing good trading psychology before trading live.got your fine line but the reality is totally different. as beginner level that is really difficult to keep patience . need a strong mentality.
Agreed, trading psychology is important to learn about and we constantly need to work on managing our emotions. This is a big part of becoming a successful trader, and many people underestimate its power.Newbies should develop a positive and serene mindset and focus on developing good trading psychology before trading live.