5 Reasons Why You Might Not Be Earning Money In Your Foreign Exchange Currency Trading

If your trading the stock market or Forex it can be incredibly annoying if you are not getting the returns on your investment that you want. You look around at the forums, news, etc and everybody seems to be making money other than you !. So what are the main explanations people do not make money in forex trading.

Here’s my top 5 reasons

1. Whatever FX currency trading system you employ whether it be a manual or automatic one.

Whether it be day trading, swing trading, scalping trading or whatever you must give it long enough to see results. It is easy to be sidetracked by what every one else is doing. Focus on what you are doing.

2. Keep a trading diary. Why you did what you did and when. Evaluate what you did well and what you did not so you can eradicate errors and replicate successful trades.

3. Rome was not built in a day. Do not give up too quickly and do not be expecting to earn a fortune from day one.Set goals of course but keep them feasible.

4. If you have purchased an FX currency trading system that is unprofitable cut your losses. The same obviously applies to your trades. For each trade you make you have to identify a point where you will exit if it goes against you. Let your winners run and cut your losers quickly. Do not depend on prayers to accomplish your goals.

You have to be brutal when cutting losses. I know I have been there it is so tempting to wait a little bit longer in the hope that the trade will start coming back. Or perhaps you might be tempted to average down. I would not recommend that unless you are 100% certain which you in all probability never would be !.

5. Money management is absolutely essential. If you let too much ride on one trade you may come up trumps a few times but you will lose out long term and will more than likely lose everything if you persistently place risky trades like this. You should never risk more than 1-3% of your trading capital on one trade.

To learn about an automated FX currency trading system visit this useful website http://bestfxcurrencytrading.com