People come into the Forex trading world with hopes in their minds and brain. Forex is a marketplace where the traders deal with currency pairs such as EUR/USD, USD/GBP, EUR/GBP, USD/JPY, NZD/AUD, etc. This market remains open 24 hours a day, and because of this, lots of transactions occur every day.
It is often said that earning money from this currency exchange world is very easy, but the situation changes when one enters the real platform. We also opine that earning profits from this market is easier, but one may lose his investment from this industry quicker than he can even imagine. This is a frequent incidence among beginners.
Beginners lose trades because of their inadequate knowledge about the market. Because of their insufficient knowledge, they don’t know when to place the orders and when to execute it. They don’t even identify an ideal entry or exit points. As a result, they lose trades and become frustrated. These newbies don’t even know what they should do.
In this article, we have come with the tricks that should be followed by those people who have lost several trades in a row.
What to Do After Losing a Few Trades
- Take breaks
You have lost a few deals consecutively. Don’t panic or get frustrated because everyone can earn profits from Forex. Instead of being frustrated, take a leave. You need to focus on doing your business or other tasks. Do anything to stay away from the platform. Those who are involved in futures trading often take break even though they are doing well. They never rush in this business.
Take your time, and after a few days, come back and start studying more. Don’t yet start trading because it is time when every beginner should identify his weaknesses. Keeping a trading journal can help him in this period.
- Identify the weaknesses and start developing it
While analyzing the trading journal, take a close look at the following issues –
- Which one is responsible for losing so many deals?
- Are there any common things among those lost trades? If so, what is that?
- Are there any gaps in the business strategy?
- Are you placing the orders too fast or too slow?
- Are there any money or risk management techniques in the strategy?
Find out the answers, and these will help you figure out the weaknesses. After identifying the problems, it is time to solve it.
Once a newbie figures out the weaknesses, he should immediately modify it and practice with a demo account. The Forex demo account is considered a blessing for the novices. One can use it to make the plan perfect.
- Trending and market types
Once the modified strategy is developed, the rookies should think about the trends. He should determine which trends are better for him. He should now focus on learning about the directions or flows and the ways to spot them. He should also learn to use those trends to his advantage.
- Comfortable methods to analyze the chart
A trader can use either fundamental or technical methods to analyze the chart. But it is really complicated to choose the right one. Since you are a novice, we suggest using the fundamental analysis and going for a long-term trade. Technical analysis can make the business stressful for the novices.
- Don’t be greedy
Once the novice set up all these things, it is time to return to the platform once again. This is the last piece of advice from us. Don’t be greedy because greed will influence the traders to take bigger risks and start overtrading. Always stick to the plan and keep learning.
These are the five pieces of advice from the experts. Following these will help a novice to stand firm and motivated. Remember that every successful trader in this platform has faced losses.