My name is Julia, a Russian trader. All my efforts spent in my three-year forex trading experience have ended up with failure. My lessons are summarized herein.To get more news about WikiFX, you can visit wikifx.com official website.
1. Error in carrying out the contract entered into with a forex broker
I was not aware of the account threshold for executing transactions and charges such as commissions at the beginning, thus failing to select a proper forex broker and spending a lot.
Lessons are listed as follows:
Read all terms and conditions carefully.
Comparing terms and fees offered by different forex platforms.
Be well-prepared through research and confirm the market and its direction.
2. Lack of relevant knowledge and systems
I didnt know how to execute my orders, selling out when hit by a fall and buying in when seeing a rise. Before long, I suffered a loss worth 20% of my capital.
Lessons are presented as follows:
Fully comprehend trading charts and understand the market.
Pay attention to momentum indexes (MTM) amid interday trading.
3. Changing trading systems too frequently
I have tried at least 40 trading techniques and indicators, each of which was not used for more than a month.
One lesson is concluded:
Try all functions of a system at least within 4 to 8 weeks.
4. Neglecting capital management
Although I controlled my loss ratio, I didnt stipulate the number of trading losses in a day. In this case, my overall losses were heavy.
Here are two lessons:
Set the number of trades allowing to lose in a day.
Dont breach your own capital management principles.
5. Holding losing positions
I became quite emotional because of losses, thus holding a transaction with the heaviest loss for nearly a week, which worsened the failure further.
One lesson is listed:
Stop-loss must be set.
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