We all know the aggressive traders are the ultimate losers of this market. You may be a millionaire but being aggressive in the Forex market will always result in heavy loss. You need to show patience and trade this market with an extreme level of caution. Being a new Aussie trader you will not have the patience to wait for the best signals. Most of the time, you will lose patience and become aggressive with your approach. Once you get excited and start showing aggression, the market will wipe your trading account. Let’s find some of the key reasons for which aggressive traders always fail to make a profit.
Aggression is nothing but the representation of human emotions. Being an emotional trader, you will never analyze the price chart with logic. Most of the time, you will be executing the orders with gut feelings. Before you deposit the fund, you have to know the consequences of trading the market with emotions. You might secure big winners with emotions but things will get worse in the long run. Very few traders understand they are emotionally attached to this market. When they realize this fact, it’s too late and they lose the entire capital.
Increasing the lot
Trading with false confidence is very common for naïve traders. Becoming a profitable trader in the Forex market is more like learning to create a beautiful art piece. You have to focus on the minor details or else predicting the price movement becomes nearly impossible. The pro traders in the options trading are making a consistent profit since they never increase the lot in trading. If you increase the lot, you might have a better chance to earn more money but it also increases the risk. Instead of increasing the risk exposure, you should try to find a high risk to reward ratio trade setup. By doing so, you can earn a huge profit with very low risk. On the contrary, increase the lot when you can trade with tight stops.
Ignoring the expert’s advice
Those who ignore the expert trader’s advice, can’t learn anything new in the Forex market. Most of the time, they are losing more money since they don’t have the required skills to analyze the price chart. Being a fulltime trader, you should seek help from the mentors. And the elite traders never help the traders who talk with aggression. You need to be polite in social trading network sites and follow the detailed guideline of the experienced traders. Once you start following their footsteps, you will see the change in your trading strategy.
Discipline is the most important thing in life. If you break rules, it’s just a matter of time to blow up the trading account. So, how we can develop our discipline. To be disciplined trader, we need to embrace the fact, losing trades are very common. After that focus on your trading journal. Those who don’t have the trading journal should create a trading journal so that they can follow some basic rules while executing the trades. Becoming confused with the trading results is very common. Still, you should not break the rules. If you do so, you are not committed to your strategy. And those fail to keep the commitment always lose money.
Developing your personality
By now it should be clear why the aggressive traders are the ultimate losers. To develop your skill, you should depend on the demo account. Trade as long as you need but never switch to the real account you learn to control the aggression. If you ever feel bored with the demo performance, stop trading the market. You must enjoy demo trading or else you will not be able to learn. Learning should be spontaneous and you should not lose confidence after closing a few losing trades. Confidence should be your main arsenal but not aggression.