Forex is such a incredible financial type of markets that can make you a living. However, sometimes we understand that not all trades are good, and that is the reason why we lose money as well here. The saddest part here is, we tend to lose more than that we actually make profit, which is kinda pissing to look especially in your portfolio. What is the most common reason you are having this problem and what can you actually do to prevent this to happen again.
Zooming too much
When you zoom too much into your trades especially if you are a short term trader, most likely you do not get the actual glimpse of the whole standing of the certain crosses or pair. Now this is the reason why you are getting stopped out because you do not allow most of the noise to happen which makes you lose more than you actually profit. Now if you are a scalper, then most likely this is your problem, and we cannot avoid that to happen.
Go to higher timeframes. Do not be impatient to wait for the best opportunities to enter as Forex are always there for us every single day. Maybe you see in the Minute 1 – 5 that it displays a huge selling volume for a certain pair and you did not see that there are more space for it to go down, because it reaches the new highs. For you to have an analysis of that you go to a higher timeframes, and try it again.
Not aware about the news, releases, statements
In Forex, every movement explains why it goes into that. When there is an important economic news coming out, this is the most common thing to take note. You entered in an opposite direction which the fundamentals are pointing to, and you will end up getting trapped. Why is that? because you defy a trend, and if you are hoping for a bend then most likely this situation will always happen to you.
In the Trade War, every words are important because as the tension grows, the uglyness of the market is also getting uglier even more.
It is always a rule of thumb not to trade when in news or hedge your position. It is also important nowadays to follow Bloomberg, Trump’s Twitter account, and South China Morning Post, as you could know if you should go out in your position or you will just continue what you had done.