Are you struggling to earn as much money as you thought you would from Forex trading? If so, there’s a strong possibility that you’re missing out on a large number of profitable trades. Maybe you’ve done everything else correctly. You selected a top broker such as EagleFX, you’ve taken the time to master the basics, and you’ve learned how to perform detailed analysis. Why are you still not raking in the profits? The reason just may be one of the following common problems.
- Ignoring the News
Market news is vitally important. Checking the news first thing in the morning is an excellent idea, but are you checking on reports later on during the day? Missing out on important reports that drive asset prices equates to missing out on profit opportunities. Consider making it a habit to check market news throughout the day and absolutely do refer to a detailed economic calendar on a daily basis. The more you know, the more you’ll earn from FX trading. It truly is that simple.
- Strategy Hopping
Forex strategies can lead to excellent profits, but they can also be problematic. Time can be wasted on strategies that are overly complex, overly time-consuming, or simply do not work. Then there is also the problem of strategy hopping, or jumping from trading method to trading method, looking for quick profits. The best approach is to find a few tested and proven strategies to use on a regular basis and use those over and over again. This is not to say that you cannot branch out but be mindful of the amount of time that you’re spending on strategy testing.
- Not Taking Profits
Allowing a trade to run past the time that it should have been closed is a major no-no. Often, the reason for this is merely greed. The market is moving in your favor and you want the cash in the largest possible amount of profit. But what if the market starts to move against you? Erasing some of your earnings, or even worse, wiping out all of them? Professional traders often stress the importance of having a plan for when to close a losing trade, but the importance of having a plan for when to close a trade that is in profit should be equally stressed.
- Lack of Education
Even if you’ve chosen an excellent broker such as EagleFX, you still have to learn how to trade. The broker can provide you with excellent trading conditions and support but cannot (and will not) trade for you. The bottom line is that many profitable trades are overlooked by beginner level traders who simply are unable to read the markets correctly. Everyone has to start somewhere, and no one will be profitable on every trade, but the more you know, the better off you’ll be. If you’re trading forex without fully understanding how to do so, consider taking a break to continue your education.
- Trading too Little
Far too many people expect to generate huge profits in little time. The truth of the matter is that if you truly plan on getting rich from FX trading (or more realistically, supplementing your existing income nicely), then you need to be actively trading for at least a few hours each day. If you’re not trading, you’re missing out on profitable trades. If you find that you’re too busy during the standard business week, consider opening an account with EagleFX and trading cryptocurrencies, which can be traded on 24-hours a day, 7-days a week within this brokers platform.
- Overlooking Longer Time-Frame Trades
A large number of FX trader opt for short-term trades on a consistent basis, completely ignoring the profits that can come from long-term positions. With some assets, it’s simply best to play the waiting game, allowing time for a slow, steady price trend to setup and then cashing in on your forecast. Analysis for long-term trades is most definitely different from that of short-term trades, but it isn’t all that different. If you truly want to maximize your opportunities, don’t overlook those long-term trends.
- Choosing the Wrong Trade Sizes
This is less about missing out on profitable forex trades altogether and more about earning less (or losing more) than you should due to choosing the wrong trade size. If you commit too little to a profitable trade, you are leaving money on the table. If you’re committing too much to losing trades, you’re letting money slip from your hands. This is yet another problem that is linked to lack of education. Part of knowing how to trade FX is knowing how much money to commit to each trade. Don’t overlook leverage either. Broker’s like EagleFX offer leverage up to 1:500, which is excellent.
- Limiting Asset Variety
Do you have a few assets that you prefer to trade on? If so, you’re certainly not alone. The problem here is very clear. Limiting the number of assets that you’re willing to trade with is increasing the odds that you miss out on profitable trades. Once you’ve learned how to trade using your favorite assets, consider branching out. The EagleFX trading platform contains over two-hundred assets for trading. Variety is key and you’ll find plenty of it within their platform.
- Not Opting to Receive Trade Alerts
Trade alerts are email or text alerts that signal you when market conditions are changing, or trends are taking place. These alerts are not the same as signals. Instead, they tell you to look at the news and charts for yourself to see if any profit possibilities are available due to the current conditions. In an age where most people receive too many emails, texts, and sales calls, it’s understandable that you might not want to opt in for alerts, but in not doing so, you just might be missing out on one or more profitable FX trades each day.
- Giving Up
Let’s face it, trading can bring on some strong emotions. A losing streak that lasts even as little as an hour can make you question why you ever started trading forex in the first place. A losing streak that lasts longer can cause you to give up completely. If you think that trading just isn’t for you and it’s time to quit, take an objective look at your actions. Be honest with yourself. Did you start trading before you were ready? Did you skimp on analysis? Did you become overly confident and blow through your account funds? Giving up isn’t the answer. Making changes and starting over again is.
The good news to take away from these tips is that all of these problems can be eradicated with action on your part. It’s never too late to make some changes and in doing so, change the course of your trading career. As a final tip, do be sure to trade with a broker that offers good trading conditions, such as EagleFX. Make sure to use an STP broker with tight spreads, low fees, high leverage, and deep liquidity;a broker that is in position to connect traders with a platform that allows them to keep more of their hard-earned profits. However much money you earn at the end of each day, the total will always be higher when trading with a brokerage that provides these types of benefits.Get the 5 most predictable currency pairs