There are a considerable number of investors involved in Forex trading. People think it is very easy to get involved in this profession. But the reality is different. There is some information all over the internet about this profession. If you gather information from the internet and try to apply it in real-life, sometimes it can bring success and sometimes not. Statistics show us most of the investors lose their money after completing one or two months in this profession. They often try to know why the trading process is hard. Today, we will talk about the reasons the whole process can be hard for investors.
Common reasons that make the profession harder to the investors
The traders have a’ very common tendency to enter new trades immediately after losing money in another deal. They think that the lost money will be recovered so easily if the new trades begin. It is known as revenge trading. In this revenge trading system, investors use low probability systems. As a result, it causes more loss than before instead of earning more money. This system of revenge trading can creep up on professionals too. They can often face losing streaks at a different times of their career. So, you have to control the emotions like sadness, anger, exhilaration, etc., while continuing to trade.
Try to learn about the product futures. By gaining more knowledge, you will be to fine tune your trading method in a strategic way. This will definitely help you to take quality trades at the most complex state of the market.
Unwilling to follow the plan
Another reason for feeling that the Forex industry is hard is because investors are not willing to follow a plan or strategy. The traders may stick to a specific plan, but the whole plan should be changed when the market condition changes. But they often use the old strategy to maintain a new situation. The Forex platform is mostly based on specific criteria like taking the deal when the price is over the 20-day EMA. Many of the traders ignore this rule and are willing to take new trades at a lower price. The support and resistance level will be destroyed if suitable rules are not maintained. When you work without a plan, the whole process seems to be difficult to continue.
Greed and fear
Many of the investors fail to succeed because they want to be rich so quickly. It proves that greed is influencing them. They do not know that greed is such an emotion that it is difficult to control for the human being. Almost all traders fail to achieve the desired success when greed is prevalent.
When you are greedy, you will place the tightest stop-loss, which can cause a great obstacles to your trading career. The other thing is fear. If you feel fear, then the emotions will work so effectively. Fear and greed are very closely related to one another. This is the reason to make the bear markets following the bull market. But most of the time, it does not work, and the pre-planned process is hampered. Greed and fear will lead you to big losses instead of small losses. When you are about to make a very good deal, then fear can be an obstacle.
Unable to make short investment
The last reason is to invest more money at the beginning. Investors in Hong Kong often think that with a huge investment, you can make a huge amount of profit. But they do not know that a small amount of investment can also be used to make a very good profit. When they lose a large amount at the very beginning of their careers, they think this is very hard to survive in this profession. So, they tell others that Forex trading is difficult. These are the reasons behind feeling that this profession hard.