Traders most of the time blow up their account in Forex. It is very easy to lose your entire capital in Forex along with your profit as a beginner trader. This article will help you to get through it. Though you may seem that you are not on your own and market is controlling your trade, keep in mind that the market is always going to its direction based on the movement of the international monetary system and prices of currencies across different countries. You can control your trades in the market when you know what to expect from the market. If you can analyze the market and tell where the money will go, it is probably you who is going to make the next appearance in the Wall Street Journal.
The Forex is dynamic in nature and understanding its natural movement is not so easy. Even the most experienced traders often have some tough time to find quality trading signals. You might have all the trading knowledge and experience but there is no guarantee that you will make profit 100 percent of the time. In fact, as a trader, you will always have to deal with your losing trades. So if you don’t know the perfect way to accept a managed loss in your trading account then it’s just a matter of time to lose your whole investment. But if you simply follow the proper money management and trade with discipline then you won’t have to worry about financial security. This market will pay you in every single month for your hard work.
Think of your Demo as Live account
The problem with traders I that they do not think of demo accounts as a live account in Forex. They take this demo accounts as some kind of fun activity and the result is very visible in their account when they go live. 95% of the traders are losing money in Forex and these groups of traders are those traders who do not practice in their demo accounts. Traders may say that these accounts to are out of emotion as there is no money or actual risks involved. You only trade the demo accounts with what you have in your virtual account that is of no monetary value in real life. That is not true as you can gain experience and if you can repeat your success in demo accounts, there are chances that you can also repeat your success in live accounts. Live and demo trading account are all the same and you have to practice in the demo just like as you would have practiced in live accounts.
Focus on your money management
It is high time that you forget profit from your mind and keeps your focus on making your money in your dear account. Most of the traders lose their money because they shift their focus from money management to profit management and this is where they lost their money. If you can keep the money in your account, your strategy will improve and you will make money automatically. If you cannot keep the money in your account, trading in Forex will lose much more money and you will blow up your account.
Develop your own system
Some novice traders often buy an expensive trading system from the online market. But if this system was so profitable why other people are spending a huge amount of money in advertising their trading system. They can easily make millions of dollar with that system. This is only because they know that their system is not the holy grail. If you want to become a successful trader then it’s your duty to learn all the essential elements of this market. You need to know how to find the trading pattern in different time frame. Always trade the market-based on your knowledge and develop your trading strategy by using a demo account.