MAJOR REASONS YOU DON’T MAKE GREAT GAINS IN TRADING
1. Poor Market Analysis: Ignoring market analysis can lead to disaster. Proper research and analysis help traders prepare effective trading plans.
2. Lack of Trading Plans: Failing to have a plan is a recipe for failure. Successful traders follow a documented strategy with discipline.
3. Poor Risk Management: Many traders lack a proper risk management strategy and often risk too much of their capital on each trade. This can lead to account blow-ups. Traders should aim for a maximum risk of 3-5% per trade.
4. Stay Informed: Being up-to-date with market news is crucial in forex trading. Economic data and international news can significantly impact currency markets.
5. Unrealistic Market Expectations: It’s important to have realistic expectations in forex trading. Many traders expect large profits quickly, but consistent profitability takes time and skill development. Setting unrealistic profit targets can lead to disappointment.