I'm sure you are aware of the common statistic which has been thrown around for years?
For those of you who don't, 95% of new Forex traders lose money.
How To Start Making Consistent Forex Profits
I don't want this to happen to you so I am going to share my 6 easy to fix reasons most Forex traders lose money. And then by showing you how to do the opposite, you can start making consistent Forex profits.
Your Trade Entry Is Too Early
We've all been there.
Me, you & all the professional traders out there making money. The big difference is, I didn't want to stay there.
We all get anxious, all want the Forex profits but how many times does it have to happen?
I'm talking about
Entering the trade
Watching the trade get knocked out for a loss
- And then painfully seeing the trade go in the direction we thought
Isn't it heart breaking?
If you can learn to not rush in, and start timing your trades perfectly, guess what is going to happen? You are going to start seeing Forex profits.
Your Trade Entry Was Too Late
What you will see is all 6 are based on how we approach the trade. Approach is all done BEFORE you are going to enter the trade. Learn to trade Forex like a chess player.
The reason I say this is because if you plan out a trade in advance, there is no opportunity really for an early or late entry.
Your entry is determined in advance, win lose or draw, you can live with the results right?
If I am looking for a trade in real time and I see something which looks good.
I want to enter now
I don't want to miss it.
- Or I want to keep waiting for that right opportunity.
Either way, trading in real time will always provide higher levels of doubt than picking trading levels in advance.
Your Stop Loss Is Way Too Conservative
We've all been there haven't we?
We really don't want to lose but we know this trade is a banker. So we enter as planned but place a much smaller stop loss than usual.
Although price moves in our direction, we are tapped out first because it was too conservative. If only we had used our normal stop loss amount we would be walking with a smile on our faces we say in our heads.
These trades are like double losers because we knew which way the market was moving, entered correctly but our stop loss let us down.
You're Trading Based On Impulse
I've covered this throughout this whole post already. Because this is the underlying reason you will keep losing money.
If you listen to Rob Booker's recent podcast episode he outlines exactly why it is better to trade in advance.
Like I mentioned earlier, the more trading decisions you make based on real time, the more times you will trade impulsively.
You're Trading On Emotion
Ask yourself why you took the last trade you did.
Was it a well thought out trade or was you eager to make money, recoup a loss or something very similar to the previous two?
The aim as a Forex trader is to make money but you cannot allow your emotions to get the best of you.
Write on a post it note and keep it in front of you. Write "Am I Trading Based On Emotion?"
Not Being Aware Of News Releases
Boy was I a sucker.
Now I use a live news feed when I trade so even if for some strange reason I forget to check an economic calendar, I have real time updates of all news.
Sometimes you are in a trade and things are chugging along quite nicely. All of a sudden, the trade instantly reverses and starts shooting in the other direction.
This normally isn’t coincidence, it normally is important news.
Don't forget to check whether news is coming out. You can use the economic news calendar on Forexfactory. Or you can use the RanSquawk news feed like me for live, audio, real time Forex updates and news.
Start Making Consistent Forex Profits
If you implement all 6 things above, you will start making consistent Forex profits. I cover this whole topic plus 11 more in the VintagEducation Forex Premium pack. Click here to check it out.