Challenges of a Forex Trader!!

[priti24701]

As a beginner Forex trader, what problem or challenges do you usually face? And what do you think would help you do better?

 

[MichaelJohnFX]

Not a beginner myself, but i think newbie traders could do with sitting down in front of a screen and understanding price action - despite what the industry tells you. When you're more advanced / intermediate, can stay away from screens. Also, risk management is something a lot of retail traders struggle with massively e.g. where to put stops.

 

[Henow1969]

At the beginning of my trading, I face getting some good material to learn my trade and after it, consistency was my big problem and i never make a good profit consistently.

 

[Terez93]

When I had begun, the biggest issue used to be the right entry/exit of my trades. I used to lack that focus somewhere and handling emotions used to put me off track. But yeah, practice does help one getting out of such issues.

 

[amtradingfx]

Risk management
Risk management
Risk 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

 

[MacroBeat]

Risk management
Risk management
Risk 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

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 step

 

[Hi3rophante]

The big problem fo the beginner : not facing the truth ; that's why it is very important to track your results with some software or website, so you can see FOR REAL how you are actually performing -and eventually improve if needed.

 

[Kathrikelv]

It is necessary to really look at how trading in the forex market will take place and that many problems will have to be faced.

 

[MacroBeat]

It is necessary to really look at how trading in the forex market will take place and that many problems will have to be faced.

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 point

 

[cantagril]

Risk management
Risk management
Risk management

...You should add to that : "Risk Management"

 

[HeavLeighGill]

Coping with losses was a big one for me in the beginning, especially once you get going with pretty good results and then take another setback.

 

[Farm Yard Forex]

The biggest challenge most traders will face is themselves.

 

[Jungletrader]

Your own mindset .
Taking a trade that fits your parameters looks good moves into profit then swings back takes out your SL .
Then you'll know how strong your mindset is

 

[dusktrader]

Taking a trade that fits your parameters looks good moves into profit then swings back takes out your SL .

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.

 

[sharabela]

As a beginner Forex trader, what problem or challenges do you usually face? And what do you think would help you do better?

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.

 

[PipjappBevy]

Every trader faces different kinds of challenges, but I’m going to point out a few that most traders come across:

Strategies not working - Many traders after practicing for months on demo accounts start live trading thinking they would replicate their good performance in the real trading world, but that bubble bursts quite fast.

Not making as much money in a live trading account - This point is related to the previous one. In demo accounts, traders start making decent profits, but as they enter live trading, profits start to dwindle, and the whole focus shifts towards surviving in the market.

Getting emotional - Traders need to follow trading psychology, but not many follow it. Emotions such as greed, ego, and revenge can jeopardize trading capital.

Not able to read charts - Not many traders can read and interpret trading charts, and this is a big problem. Charts depict price and market movements based on which traders make their next moves.

Overtrading - Traders who have an aim to become rich overnight or cover their losses need to stop trading for a while. By overtrading, they only risk their money. They must devise a solid trading strategy and trade according to it.

 

[progix]

Sticking to proper risk management can be a challenge to any forex trader so it is advisable to use proper stop loss and do not enter in trade once the trade ended due to stop loss.

 

[Flink]

got your fine line but the reality is totally different. as beginner level that is really difficult to keep patience . need a strong mentality.

Newbies should develop a positive and serene mindset and focus on developing good trading psychology before trading live.

 

[WalletInvestor]

Newbies should develop a positive and serene mindset and focus on developing good trading psychology before trading live.

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.

 

[taylorarnold]

The most challenging part for me was to read charts. It seems very easy when you first learn about candlesticks but it’s not as simple as red candles for downtrend and green candles for uptrend. It takes deeper understanding to read all the information that’s underneath thode red and green candles.