Forex Day Trading has become a popular pastime with tens of thousands of avid traders around the world dreaming of making it big on the currency trades by raking in hundreds or thousands of dollars in a matter of minutes. And indeed, the forex market provides a massive money making opportunity with over 3 trillion dollars changing hands on a daily basis.
However, alongside opportunity there is also risk and the statistics show that over 90% of forex day traders lose their money in the long run. Why is that? This article deals with that exactly.
1. Short span trades - Forex day trading is all about making short and fast trades. If you fall in love with your trades, not raking in your profits when you can or staying too long in a losing position, then you're no longer a day trader. Your day trading system needs to be fast.
2. Waiting too long for the perfect moment - Day trading is all about making many small gains. If you keep waiting for the perfect forex day trading signal that may never come, you may spend your entire day in front of the monitor without making a single trade. It's better to profit less than the maximum than not at all.
3. Falling in love with a system - Many traders end up losing their money because they develop a fixation on some sort of forex day trading system and don't leave it even when it doesn't work. If something doesn't work for a length of time, chuck it and find another strategy.
4. Making money for your broker and not for you - Brokers love day traders better than anyone else. The more trades you make the more commission they rake in. Don't waste your money on your broker. Negotiate the best commissions. As they see you make many trades, your brokers will fight to keep your forex day trading activity with them.
5. Don't trade blindly - You may be the best trader in the world, but if you're trading without a forex software than you're trading blindly. Stop! Get yourself a good forex software to support your actions and you're likely to make more money on your forex day trading efforts.
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