Why am I still losing in Forex?

Q: Why am I still losing in Forex?

A: Best answer

There’s a lot that we don’t know about your trading right now. It could be you have subliminal messages at the back of your mind that say this is impossible and it is just scam. Could also be you are not 100% committed, you may have a paying job. It could be not enough family support.Like all works of life, we perform when under pressure. If there ia no pressure the mind won’t be creative.

Forex are not for everyone so it may not be for you. These are things you should look into to increase the profitability of your trading:

Do you sometimes cut your winners short? If so, why?

Do you move your stop loss away from your order open?

Do you notice you jump into trades too early? Maybe you’re going in too late and chase the price?

Does your strategy perform better on higher timeframes? Most strategies that are based on chart patterns will give more reliable signals on higher timeframes, so that is something to consider.

If you go for smaller wins, are you more profitable? If you go for bigger wins, does your profitability increase? Try to measure the effect of different exit scenario’s on your expectancy.

How do you manage your trades? Do you move stops to break-even and notice that price often moves against you?

What is your MAE (maximum adverse excursion) and MFE (maximum favorable excursion)? Maybe you can easily take more profits or use smaller stop losses?

How often do you ignore your strategy and take a trade that is not in your trading plan?

Do you often find yourself not taking trades that are perfectly valid setups according to your strategy?

Do you journal your trades? Do you review the trades you take, look for what went well for your winners and what you could improve on your losers? Even the mere act of writing down why you take your trades will give you some insights about your system.

Have you backtested your strategy? Like going candle by candle and test over a large enough set of trades (20–30+) if your system is profitable? This accomplishes two things: you figure out if your system actually has an edge and it creates the confidence for yourself to actually follow your system when money’s on the line.

Do you notice that you become influenced by losing streaks? Trade less confidently? If you made a big loss, maybe you should step away from the charts for the day and use a smaller lot size the next trade you take?

Do you believe in your success? I know traders who were almost profitable, but from the moment they had a positive balance, they gave it away because unconsciously, they didn’t believe it could be done or got scared. Sometimes, a change of mindset is all you need.

Novice traders engage in Forex trading with high hopes of making big money. The truth is that although they win small amounts, they’ll lose even more. As a result, many try new strategies and further educate themselves, only to find out their efforts haven’t paid off.