Causes of Big Loss in Forex Trading
Forex trading is not always profitable. There are times when traders experience losses. In business, profit and loss are common. Losses can be experienced by every trader throughout his career including large losses after the cut loss which results in the loss of most of the capital. Whether it's because the market has suddenly changed or because of internal factors that are undisciplined and too aggressive in trading. To overcome this is to rise from adversity. However, traders must know the causes of big losses in forex trading. What are the causes of the big loss?
Over Lot
Over lot is the volume or lot used by a trader to place a buy order or sell order the lot size is too large, or the amount of margin used to open a position, the amount exceeds 10% of the total capital owned.
Overtrade
Over-trading or over-trading is often caused by emotional trading. This is a very common mistake made by novice traders. Over trading or opening too many trading positions is usually caused by an emotional way of trading, and is very common for forex traders, especially novice traders who have not much trading experience. Those whose trading results are inconsistent and tend to experience frequent losses are usually over trading without realizing it.
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