Top five problems of a Forex trader 

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Everyone knows learning to trade the market like a professional trader in Hong Kong is a very challenging task. You might have a huge amount of money but still, you are not going to become a successful trader easily. Unless you work hard and educate yourself properly you are bound to lose money in trading. Being a new trader, you have to rely on three major forms of market analysis to find the very best trades. Even after doing all the hard work, some of you might not be able to make money from this market. Let’s explore the top reasonswhy retail traders loses money even after getting the proper education.

Breaking the rules

Your trading strategy is the ultimate guide to execute the trade. No matter what you see or believe, you should follow the rules stated in your trading strategy. If you fail to comply with the rules, you are bound to lose money. To become a successful trader, you must trade this market proper discipline. Never think you can win big trades with gut feelings or emotions. Emotion has no place in the investment industry. You need to trade the market with proper logic and rely on your system.

Revenge trading

Revenge trading is another key reason why rookie traders are blowing up the trading account. After losing the trade, they become emotionally imbalanced and eventually increase the risk factors to recover the loss. Such an aggressive trading system might help you at the initial stage but considering the long term goals, you are bound to lose money. Stop revenge trading the market since it will always result in heavy losses. Stick to your trading goals and embrace the losing trades. Losing trades are just a part of this profession.

Trading with the low-end broker

The selection of your broker plays a great role in your trading success. Visit https://www.home.saxo/en-hk to learn more about the professional trading environment. The low-end brokers might give you lucrative offers, but do you think this will help in the long run? You can’t become super-rich by getting a bonus on the initial deposit. You need to find a reliable broker like Saxo who will offer premium trading conditions. So, choose your broker very carefully or else you will have to lose a big portion of your investment.

Failing to find the perfect exit

The retail traders are always working hard to find the exact entry point. Finding the entry point is just a part of this trading profession. You need to have an exit plan for your trade. Some of you might think this market is rigged and you can’t make a profit. But if you use a demo account and create a simple exit plan, you will see significant improvement in your trading career. Stop trading the market without having a goal. Learn to set realistic goals since it will help you to become a successful trader. Always trade the market with managed risk since no one knows the outcome of any trade.

Using too much leverage

Leverage can be extremely helpful to maximize your profit. But the rookie traders don’t understand the proper way to deal with the market leverage. They are always busy in placing random trades and eventually blow up the trading account. The smart investors always suggest that new trader’s trade with 1:10 leverage since it greatly reduces the associated risk in trading. With the increase of your account balance, it’s better to lower down the leverage. A low-end broker will always give you high leverage since they don’t care about your trading career. But the elite broker will give you leverage based on your trading skills and account balance. So, stop using the high leverage trading account since it increases the risk to a great extent.