This is like rule 101 for Forex traders. The most common way of losing your profit in your money in Forex is by staying in the market even after when you have made a good amount of profit. Profit is so hard to make in Forex and if you can do it, it is the first and foremost duty to close your trades and take the exit from the market. Yet this simple task cannot be done by many traders and as a result, they lose all of their profits. When they have decided that they will quit the market and they have made a good profit, the trend has changed and they are losing money.
In our article, we are going to tell you why traders could not exit the market after they have made their profit. Is it their greedy mind or they do not understand when they exit? All of these will be clear to you once you have read our article.
Most traders become greedy
Traders are not greedy when they first came to this market. They only know that this investment market is the biggest market in the world and they would be very happy to get a small piece from this large industry. They begin their trading and get to know many other professional traders of this Forex trading. When they know that all these traders are trading in large money and they keep their trades open in the market for making a profit, they do not understand these traders ate professional in Forex and only keep their profits open and running when the market is in their favor. The new traders do not understand this and they also want to make a large amount of money like these professional traders. This is when traders become greedy and to make their profits as big as they can make, they do not exit the market when they make a profit. They are not happy and want to make their profits even bigger.
Why could they not exit after realizing?
They could not exit the market after realizing that the market is going to reverse because they keep hoping that the market will be back in the trend and they will make money. They also could not accept they will lose money in their Forex trading account. This does not happen all the times and most traders who have been in Forex market only lose their money. The trend does not return and why they have realized that they have lost their money. But the market trend will not remain forever. This market is dynamic in nature and very often the long term trend gets changed. If you are new to this trading community then you should develop a strong mental stability or else it will be hard for you to make quality trades. Once a single trade hit your potential take profit stop trading for that day.
Focus on quality trade setup
When the retail traders win a big trade they become anxious to place their next trade. Most of them don’t analyze the market perfectly in the second time and ultimately lose a huge amount of money. You need to learn to control your emotion if you want to survive in this industry. All the professional traders also face such type of problem during their initial stage but they were devoted to their trading discipline. Without strong devotion and patience, you can’t overcome this problem. You need to have the stable mentality to master the art of trading to make profit consistently.
Summary: As a trader, you should always focus on quality trade execution. If you execute another trade immediately after a big winner then you won’t be able to do the perfect analysis. So it’s essential for you to take a small break after the closing of running trade.