The toughest profession? Yes, you are reading it correctly. Trading is often considered to be the toughest profession in the whole world. The success rate in this industry is only 5 % which means 95% of the traders are losing money. So, if 95 % are losers why trading is still so much popular? The answer remains behind its lucrative profit potential. Once you master the art of trading, then the sky will be the limit for your potential earning. Regardless of the world economic crisis, you will be able to make a decent income in every single month. You will never have to worry about your financial need. To be honest you can enjoy your life to the full. But before that, you will have to spend a minimum of two years in this field to make a consistent profit. In today’s article, we will focus the on the main challenges that every novice traders face in their trading career.
Human beings are very intelligent and by nature, they are not programmed to accept the loss. Every single human being wants to win in this world. But the trading world is wholly different from our normal world. If you consider the expert traders in Switzerland then you will notice that all of them are accepting the losing trades with a great smile. They know that losing trades are just the outcome of this profession. You simply can’t ignore it rather you need to learn to adapt to your losing trades. This is the big challenge for every new trader. You need to reprogram your mind with new mission objectives that lose are very normal in trading. But most of the traders fail to do so thus they lose a big amount of money. But if you have strong passion and devotion than over the period of time you will eventually master the art of controlling your emotion in the currency market.
Lack of trading knowledge
Most of the retail traders think that this industry has nothing to with education. But in reality, this market only pays to the educated person. You need to know how the Forex trading industry works or else it will be impossible for you to make profit consistently. If you are new then go for some paid trading course. There are many traders who often buy bots and EAs but always remembers that these are nothing but a waste of money. Instead of this, if you buy a simple book on trading then you will see a dramatic improvement in your trading performance. Those who are trading with the professional broker like Saxo have access to the Saxo Academy where lots of free trading resources are available for the retail traders. Every single day you should do some research on the internet and you will be able to learn many new things about trading.
Due to the recent competing among the brokerage firm, most of the brokers are trying their best to draw the attention of the new clients. For this reason, they set high leverage trading account for their clients. The new traders think that they will be able to make a huge amount of money by leveraging their trading capital. But leverage is one of the most dangerous things that you will ever encounter with your trading account. You need to trade the market with precise stop loss and calculative risk. There is no reason for you take a huge risk to get a big winner. Your main focus on should be on quality trade execution by following money management.
Summary: Trading is easy if you know how to do it. But in order to learn the art of trading, you must read lots of books and articles. There is no other alternative other than learning. This market is dynamic in nature and you also need to adapt to the market changes.