The traders join in the trading industry to earn money. Sadly 3-4% of the retail traders are able to make earn money from this market. As a naïve investor in Hong Kong, you have a lot to learn about this market. Never thin you can become a millionaire without doing all the hard work. Since the Forex market is extremely volatile in nature, you have to learn a lot about the technical and fundamental parameters. Without having a strong knowledge of this market, you should never try to execute the trades. If you do so, you are going to blow up the trading account. In this article, we are going to highlight some of the key reasons for which you might blow up the trading account.
Trading with emotions
Trading with emotions is a very big mistake. If you intend to make a living out of trading, make sure you are not trading this market with emotions. Because if you do so, you are not going to analyze the technical and fundamental data. So, all the trade executions will be based on simple emotions. Learning to gain control over your emotions is a very challenging task. But with proper devotion and hard work, you can expect to trade this market with logic.
Trading the low equality signals
If you start analyzing the lower time frame, you will lose too many trades. The naïve traders are losing money most of the time since they don’t have the ability to analyze the perfect trading signals. To make living out of trading, you should have the skills to identify the false trading signals. Identifying false signals is not difficult. But for that, you might have to use the demo account. Try to create a unique trading strategy by which you can find the quality trade setups. Once you learn to trade this market with the best trade setups, you don’t have to lose any real money.
Learn to trade with the best broker
You need to open the Forex trading account with the best broker like Saxo. If you trade with the unregulated broker, you are not going to get the best trading environment. Most of the time, you will deal with the faulty price feed and eventually you will lose a big portion of your trading capital. If you want to earn money, you need to think about the safety of your investment. Think about the long term goals at trading and ignore the associated cost of the premium brokerage firm.
Stop using EAs and bots
Using EAs and bots are one of the prime reason for which the naïve traders are blowing up the trading account. The EAs are designed to execute trades based on some specific traits. The EAs are just your helping tools. But if you try to use the EAs and bots to automate the trading process you are going to lose most of the time. So, try to use the manual trading strategy so that you don’t have to blow up the trading account. If possible ignore the EAs and bots as it can improve your trading skills.
Trade with the trend
Those who are trading the market against the major trend are losing money most of the time. Being a currency trader you have to learn the importance of trend trading strategy in the Forex market. If you want to survive at trading, you should only trade with the major trend. The trading method has its own benefit. Since the market stays in favor of the trend most of the time, you will be winning more trades. On the contrary, if you place your trade against the trend, you are going to lose money most of the time. So, learn to stick to the major trend as it can change your trading career.