Most of the Forex trading brokers market their brands aggressively, in order to attract more and more members. At the same time, a big percentage of beginner traders end up losing money on trades.
Let us first check out some of the main reasons why people lose money on Forex
- They make unrealistic expectations, and end up making mistakes.
- They do not put in efforts to educate themselves, and they approach it with the same mentality of paying lotteries.
- Many people have lost money because of desperation. They rely solely on luck, and take drastic measures to increase their earnings.
- Not bothering to see what is happening is the market, before placing their trades.
- Becoming greedy and disregarding the trade strategies. You are fated to lose money if you rely solely on emotional trade decisions.
- Also, many people have failed simply because of not acting on time. They hesitate to make the moves, even when they know that the timing is right.
- Similarly overtrading can also prove to be disastrous. Your body and mind has a certain capacity, and you must make it a point to NOT stretch it beyond that.
- No familiarizing themselves with the vital trading tools that help in making accurate trade decisions.
As you can see, most of the failures are caused because of the inefficiency of the traders itself. They make errors in judgment due to lack of clarity on the market conditions, inability to use the analysis tools, and also due to other emotional factors like greed.
Trading Analysis – The Backbone for Your Success as a Trader
In order to make winning trades consistently, you will need a combination of 3 types of analysis, namely the fundamental analysis, technical analysis, and the sentimental analysis.
When it comes to trade analysis, it really means that you will be working on the data that is available for you at that time. Now again, the data that you get should be in a timely manner, preferably from a single point.
That is exactly the reason why the Economic Calendar is one of the indispensable tools for traders, be it for beginners or for the experts
It is not just enough if you have the data on existing market trends, which you can get to see with trading tools like the candlestick charts. At the same time, you will also need to keep track of major economic events and announcements of the future, in order to analyze their impact of trade movements.
With the help of economic calendar, you can keep track of future indicators that can determine the market movements. That kind of information is very crucial for a long term success of any trader, which is why it is an extremely essential tool for the beginners.
Market movements are generally the result of more than one factor. For example, announcements on increase and decrease of interest rates are definitely the sure-shot indicators for placing both, long-term and short term trades. If the interest rate does not change, then the traders will need to analyze other factors like market sentimentality, volatility, etc.
When it comes to Forex online trading, that really is no limits to your growth potentials. However, you will need to learn and understand the intricacies that can affect the markets. Make sure that the Forex brokerage trader you choose provides you with the essential tools like the economic calendar.