The Three Hardest Things to Do in Forex Trading

first thing is not to trade

Trading because of boredom and impatience is an important reason for many traders to lose money, especially short-term intraday trading. In the morning, there was little volatility in the Asian market, and the market lacked direction. You may not care, this is expected, so busy with other things. After lunch, look at the trend chart. There is no obvious trading opportunity, so let's take a rest first. When it comes to the London session, if there are still no obvious trading opportunities, novice and amateur traders will not be able to sit still, and many people must be forced to "discover" some trading signals. Or look for trading opportunities in varieties that you are not familiar with or have never paid attention to. Often you start to lose money at this time. Remember, it is not necessary to trade every day. Sometimes, no trading is the best trading strategy.

The second difficult thing is to buy at a higher price and sell at a lower price.

You read it right, so you don't need to read it a second time. Many people pay lip service to trend trading, and trends are a trader's friend. But the vast majority of people try to be smarter than others and the market when they actually trade, and they are keen to catch the top and the bottom. There is always only one top and bottom. Many traders think that the price is too high when they see the price keeps rising; when they see the price keeps going down, they think it is low. What they think is the top is actually halfway up the mountain or even the foot of the slope, what they think is low is actually the ceiling, and the price is never too high or too low. It's hard to buy higher and sell lower at first because it's against human nature, but most of the time it's the right thing to do.

The third difficult thing is to always maintain a certain transaction size

You make several transactions in a row and make a profit, so you double your bet in the next transaction, and you may continue to make a profit as a result, or you may return all the previous profits to the market. It's not a bad result, it's just a waste of effort. Let's look at another scenario. After losing money several times in a row, you think you can't continue to be unlucky, so you double your bet, and you still lose. Then continue to double and triple the increase. Now you are not only out of control in trading, but also out of control in risk. Although you have set a stop loss position for each transaction, it is actually equivalent to no risk control. Because your risk is determined by the size of the trade, not whether you set a stop loss. After losing money, increasing the transaction scale and continuing to trade will often lead to disastrous consequences. Even if the position is not liquidated, it will often cause the account funds to shrink severely.