7 Reasons Why You May fail as a Forex Trader

The Forex market is by far the biggest financial market in the entire world. It is also the most accessible financial market. Many people try their luck in this market but unfortunately not all traders succeed in the end. Financial trading may seem easy at the beginning but it actually is not. There is so much that the trader needs to learn beforehand for instance the market basics, which can help him in the long run. If you are getting started, it is important to know some of the things that are likely to make you lose your money in the trade:

  1. Starting without a plan

Planning is very important in any kind of business, not just in forex trading. In the financial market, a lot of people are likely to be led by their emotions to make trading decisions, which is the largest mistake that makes many fails. Planning will help you enjoy a few major wins while at the same time you are suffering smaller losses and this is what is termed as success in forex trading. To control your emotions, you need a well laid out trading plan.

  1. Unrealistic expectations

One thing that forex traders need to know is that the forex market is not a place to make money quickly. There are always good and bad periods, which bring profits and losses respectively. You should be prepared for both and learn how to balance the two so as to take in more profits than losses.

  1. Lack of discipline

You need lots of discipline to follow your trading plan through. Sometimes emotions will get in the way, affecting your trading decisions. When this happens, you might end up counting major losses. You have to be as patient as possible and confidence with your trading plan. Fear and greed are the two main emotions that can ruin your chances of success in forex trading, therefore do not give in to them.

  1. Trying to learn through trial and error

This is the most expensive and ineffective way to learn to trade in the forex market. You only end up counting huge losses, which might be too hard to recover thereafter. The best way to learn in this case is through the experience of successful traders. You can go through a formal trading education first before you start trading. There is also the option of getting a mentor. The mentor should be someone with a proven track record of success in forex trading.

  1. Poor risk management

If you have improper risk management skills, you may end up losing money faster in the forex market. What you need to master is the skill of grabbing profits and stopping losses automatically.

  1. Excessive trading

This can either be through trading with a lot of money or trading too often. Both ways, this is not good and it may lead to your fail sooner than expected. The reason why many people overtrade is that they have too high-profit goals, which are very unrealistic.

  1. Being unable to adapt to market conditions

The market is always not static; it keeps changing. This is what every trader needs to know so that they can track down these changes to be able to settle in any situation that occurs, therefore. Do not, therefore, assume that a single trading strategy will be sufficient to produce the same results in all situations.  You have to be able to pick a trading strategy as per the market situation.

These are just some of the reasons why you may fail as a forex trader. Good thing is that there are solutions to help you prevent them from occurring.

 

 

 

 

 

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Which is Better for Your Credit Score, Debit Card or Credit Card?

Credit Score Improve

One’s credit score is very important as it determines the kinds of loans one will qualify for as well as the interest rate they will pay. Loan lenders do not issue out loans without finding out what your credit history is like. They can understand the kind of debtor you are by obtaining your credits core. For anyone out there, it is likely that you will need to borrow some money at one time or another, which is why your credit should be important to you.

Debit and credit cards are very common today as a means of payment. Many people are skeptical about carrying cash whenever they go shopping. Since cards are less risky, they end up using either a credit card or a debit card. The two cards can be very convenient but the best to use is the debit card if you are worried about your credit. A credit card allows the user to pay for goods and services on credit while a debit card allows you to transfer your own money electronically to another account whenever you are making a purchase.

Whenever you use your credit card to make payment, you are using borrowed money that should be paid back later with interests. Debit cards on the other hand use money that is in your own account to make payments. With a debit card, you do not worry yourself about high interest rates because you are only using money that is in your account. Debit cards are just the same as paying for goods and services in cash only that they are a lot safer that cash payments. In case your debit card is lost, you immediately call your card issuer and your account will be frozen, protecting your money.

There are many more reasons why you should use your debit card more than your credit card especially if you are worried about your credit score. Some of them are:

1. You never get into debts whenever you use your debit card. The money you spend when you pay using your debit card is your own money, therefore making payments this way does not affect your credit score. This is not the case with credit cards though, because every time you swipe your credit card, your credit score is affected.

2. You do not have to worry about interest rates either when you use your debit card. This is because you are not required to pay back the money that you have spent. Credit cards are highly charged especially if you are unable to pay within the grace period. Whenever you shop, the only things you think about are the increasing interest charges and how much more than you have used you will be paying in the end.

3. You can pay less on tax: a lot of people are not aware that one might save so much money on tax if they pay it using their debit card. Credit card users are usually charged more, and this means that you will incur more debt than you already have. If you are paying less with a debit card, chances of paying on time at all times are high; therefore, you are able to stay out of debt.

A good credit score will make your life easier especially if you are anticipating getting a loan in the future. It also helps you get better terms whenever you are signing up for services like insurance. Using a debit card more than a credit card will help a lot in achieving this.

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