Novice traders at a certain point on the learning curve face some of the problems associated with trading the forex market. Here the question may arise about the nature of these problems and how to deal with them or at least avoid them?
Old strategies stop working. You should always be ready to update, adapt and refine your trading strategy as long as you want to continue making profits in the forex market. Market conditions are constantly changing and thus old strategies become less effective. Although some simple strategies are designed to suit all market conditions, this type usually includes a large number of parameters that need to be configured to suit the prevailing market conditions.
The difference between the real trading experience and the demo account. Although the characteristics of the demo account are supposed to be identical to those of the real trading account, there are some caveats in this regard. Firstly, with demo trading, you will not feel the same emotions that you would experience when risking real money, and secondly, the trades in the demo account are executed very smoothly with all forex brokers, but when you switch to real trading you may encounter countless problems, especially in times when The market has sharp fluctuations (during news releases or due to the application of rollover fees).
Scam brokers. Unfortunately, not all brokers operating in the forex market have the supposed integrity, as there are a lot of scammers in this market. Fraudulent brokers manipulate their clients through many methods and tricks: from sharp price slips to fake market jumps with the aim of hitting stops and stealing deposits or profits. That is why we always advise to avoid unknown forex companies and to limit your choice to companies that have a good reputation.
Limited knowledge. Jumping into the world of trading with little theoretical knowledge or practical experience is the shortest way to lose your money. Experience comes from persevering in trading and learning. That is why we always advise to practice on the demo account for a long time and learn all the necessary information about forex; And in case you encounter any unexpected difficulties, you will have plenty of time to look for solutions without worrying about losing your money.
Over-trading. Always maintain your moderation, even while trading. Do not open your next trade just because you just closed the previous trade with profits. Also, do not open a new trade just to compensate for the losses of previous trades. Simply put: Don't trade just because you are motivated by your feelings, but only when the market tells you there are opportunities.
Paid forex robots and strategies. Buying these systems will cost you a lot of money and you won't end up making the profits they promise you, and even if they are profitable, don't expect to get rich from them. What's more, you pay a lot of money while there are many strategies, robots and expert advisors available for free online.
Find the magic lamp. You will be wasting your time and effort if you embrace this idea because there is simply no perfect system capable of achieving amazing results in all the conditions and situations that the market is going through. The magic lamp is you - you need nothing more than to spend the necessary time learning and mastering the personal qualities that can help you achieve better results from trading, instead of wasting your money and effort in vain.