Lack of experience and skills is often cited as a characteristic of those who lose in Forex. Beginners study hard to accumulate skills and experience, but for some reason, the more they study, the more they lose. Why is this?
- Does your chances of winning decrease when you study?
- How to improve your trading
- Recommended XM
Does your chances of winning decrease when you study?
Generally speaking, the more you study, the more knowledge you acquire and the more you can win. In fact, in trading such as FX, stocks, and virtual currencies, there are many cases where the more you study, the less you can win. It can be something like:
Unable to establish a trading method
Trading beginners tend to try all trading methods in order to absorb a lot of Forex information. You can know that there are various ways to fight, but you can only do half-baked tactics for any method. As a result, no matter what method you use, you will lose.
In fact, there are many traders who have graduated from junior high school or high school among FX traders. Academic ability is not necessary for trading, but I study hard to acquire various financial knowledge. Of course, you need to study, but sometimes you think too hard and take in too much information that you don’t need for trading.
Only study, don’t practice
It is common for beginners to become obsessed with studying. This is a very bad thing, and trading such as FX is meaningful only after repeating the actual battle. Therefore, just blindly studying will not help you win. Trading is meaningful only when you have actual battle experience. If you don’t do this, you won’t be able to win even after 10 years. Even if you read a lot of books, it will end with empty theories on your desk.
Forex does not follow the textbook
If you want to study in earnest, you often study from books. The charts you see in books don’t behave the same way they do in real life. Therefore, there are many cases where you can not win even if you practice as written in the book. So why can’t we win? It becomes a loop, and I don’t know what to do.
overuse of indicators
People who only study Forex want to put a lot of indicators on the chart. One or two indicators are enough. Unwinning traders’ charts are very cluttered and difficult to read. In this case, there are many cases where traders do not know what they are trading as indicators.
How to improve your trading
In order to actually win in trading, you should do the following things. If you are busy with studying, please reconsider.
trade is simple
Keeping your trades simple wins. Trading does not require academic ability. Therefore, the simpler your fighting style and tactics, the more clearly you will know who will win and lose, and the easier it will be to come up with countermeasures.
One method is enough to win in trading. Don’t do anything else, just try one method anyway. If you do this about 1000 times, you will gradually start to see different things. You’ll get the hang of it.
Determining Take Profit and Stop Loss Points
Please decide the profit taking point and the loss cut point at the entry timing. A good risk-reward ratio is 1:2. If you decide this first, you won’t be lost and you won’t be in trouble where to pay.
XM was originally known as a forex company with too wide spreads. But this was only recently. Now there is an account type called KIWAMI account. The spread is very narrow and very suitable for trading. Therefore, this account type is highly recommended. Especially for those who trade in pounds, it is recommended because the spread is extremely narrow.