Question: 3 mistakes that will blow your first forex trading account

Question: 3 mistakes that will blow your first forex trading account

Answer

Currency trading is an area where your success largely depends on your own actions – with little practice and unrealistic goals you are likely to fail, while hard work and determination can put you on the fast track to success. Still, the number of those who give up trading is between 70-90%. It may sound difficult, but the truth is that many of the reasons other people give up can be avoided quite easily.

Reason #1: It's too hard

For some, trading seems easy. For those who have been doing it for a long time, it feels more natural and it is easier to make the right split-second decisions. Beginners should realize that getting started can be difficult, even if your colleagues or online advertisements make it seem easy. This does not mean that you have to be very smart to trade, only that it takes a long time to learn everything there is to know. From there, you also need to keep up to date with the news and keep doing research from time to time.

Some people give up when they realize all they need to learn because they are looking for an easy way to make money. Don't make the mistake of thinking you can open a trading account and make money fast if you don't feel like putting in the effort. Trading is a real way to make money from home, but it's not an effortless get-rich-quick way.

Reason #2: Unrealistic Expectations

Maybe someone quit their job thinking that trading would become their new source of income. Or maybe you need to earn a certain amount of money within a certain time frame. Whatever the reason, some people start out with high expectations or make the mistake of setting specific monetary goals they want to achieve by a certain date. This can set you up for failure, as it is difficult to predict exactly how much you might earn from trading due to all the different factors influencing the market.

Your profit goals should also take into account your initial deposit: if you hope to earn a living from trading, you should deposit at least a few thousand euros. You can't come here expecting to live off a 100 euro deposit. When people set goals and can't achieve them, they tend to get discouraged and move on to the next step. Remember that setting goals is important, but you also need to focus on the short term and think about improving yourself as a beginner trader. These healthy goals will have a better impact on your profits, and your brain will thank you with the reward of dopamine when you achieve your realistic goals.

Reason 3: loss of trading capital

We all enter the trading business to make money, but things don't always go to plan. Beginners are more likely to make avoidable mistakes, such as risking too much on every trade, setting their leverage too high, forgetting to exit a trade, or ignoring trading psychology . If these elements lead to a financial loss , it can be difficult to bring themselves to invest more money, because their new mindset tells them that they are simply not good at trading or that it is not profitable. If this happens to you, don't give up. It's just a sign that you need to spend more time researching and practicing before trying again.Try opening a demo account if you haven't already, or take trading quizzes to really test your knowledge if you're thinking about making a second deposit.