You may have the best sports car in your country and maintain it with all of your heart but, unless you sit behind the wheel and drive it, it is just a piece of pretty looking metal. Furthermore, if you are not a good driver and get distracted easily then you are bound to have an accident too.
When it comes to forex live trading, your routines, strategies, and trading plans are your sports car and your mind is the driver. Unless your mind is in complete control, not only would you have a rocky drive but you would most probably end up having an accident.
The reason why the majority of new traders fail in their forex live trading efforts is simply that they get emotionally compromised and lose their minds to their emotions. Here are some common examples.
Slow Growth Rate of Account
Most new forex traders start their forex live trading careers with a small account. They do this because of various reasons ranging from not having sufficient money to not having enough confidence in their own abilities in the market. However, what this leads to is that their accounts grow extremely slowly.
This slow growth can often become too much of an irritation for new forex traders to a point where they make a reckless decision and lose whatever little they have gained.
Panic Owing To Job Insecurity
The majority of stable forex live traders are full time traders. They rely on the forex market for their monthly incomes. In fact, most new forex traders enter the market after quitting their previous jobs as well.
However, there is a period wherein the trader is learning about the market and, hence, cannot rely on it for his monthly income. Once the trader realises this, the effect on his consciousness is immediate in that he starts to panic about job security and what he would do if he fails.
Pressures of Financial Requirements
Every individual knows how much money he is going to need the next month to maintain his current lifestyle. At the same time, it is important to note that there is no way that a trader, especially a new forex live trader, can be certain of his returns from the forex market.
When these two elements combine, the pressures of finances can make it very difficult for the trader to retain a calm and composed demeanour in the market.
Forex live traders can also get emotionally compromised because of the kind of physical pressure that the market puts on them. For instance, in the earlier stages, the forex market can be one of the most time intensive professions for an individual to be in.
This means that in the nascent stages of their forex live trading careers, new forex traders will have to spend a lot of time in front of their computers to understand the market, perfect the strategies, as well as break even in the market.