Why get out of Forex trading so early? Here’s how to stop.
Ending Forex transactions too early is a problem that many Forex traders face on a regular basis. This was one of the hardest Forex trading mistakes that I had to overcome. How many times have you manually quit Forex trading to make a slight profit or loss, only to feel the urge to punch yourself in the face the next day? I’m willing to stress it has been many times.
This post is for those traders who have trouble holding onto their Forex trades and who, time and time again, leave their winning Forex trades too soon or close their losses before they hit their stop loss.
Often, Forex traders who leave transactions too soon are due to a combination of conditions specific to the Forex market. It could be a result of their trading strategy, a trader’s trading psychological attitude, personal Forex trading belief systems, novelty bias, or a combination of these factors.
Here are the most common types of early Forex trade exits that lead to regrets:
Exit Forex trading at a breakeven point due to fear of losing in the Forex market on a regular basis, only to see that the vast majority of these trades turn out to be winners.
Exit the Forex trade to make a small profit but before the planned Forex market profit target due to concern of market reversal, only to see the Forex trade continue to meet your initial profit target and more.
Exit a normal Forex trade with a partial loss for whatever reason, long before the Forex stop loss is reached, only to watch the trade turn and become a winner.
The inability to slip into successful Forex trading positions, fear of a Forex market reversal, and frequent exits from such large holdings.
The most important factors contributing to an early exit from Forex trading
Improper Forex trading procedures and lack of knowledge of market realities
The most common reason Forex traders terminate transactions too soon is because they do not understand what they are doing. They trade with real money in the Forex market before they figure out what their comprehensive Forex trading strategy is and how to work properly in the Forex market in terms of entry, exit and trade management.
Forex trade exits are more likely to spoil if you are over-invested in your Forex trading and spend all day and night staring at Forex charts. Forex traders who have not learned to forget their Forex trades once they get into it are notorious for ending the transactions in the Forex market very soon.
If you have not yet understood the value of letting the Forex market take you out and how to implement it, you should do so as soon as possible. Allowing the market to take you out of your trade allows you to trade Forex synchronously with the Forex market instead of fighting or trying to control it.
Modernity bias in Forex trading
Modernity bias is a psychological phenomenon that states that our recent Forex trading experiences have a greater impact on our behavior than those in the past.
Forex traders are often affected by their past transactions, so if they lose a few Forex trades in a row, they get scared and start realizing that the Forex market is more dangerous than it is, and start to lose faith in their Forex trading advantage, which is very dangerous.
It is important to note that your Forex trading advantage only appears on a large number of trades in the Forex market, and you will never know for sure which trade will be winning and which will be losing until the trade in the Forex market is completed. As a result, allowing your past deal, or even a series of deals, to influence your feelings and actions about your future trade is neither constructive nor reasonable.
The mentality in trading psychology in Forex
Exiting Forex trades early is often the result of not having the right mindset for trading and not understanding the basic facts of how the Forex market works.
A lot of Forex traders get into the trade hoping to get rich quickly and even quit their jobs before they make any trading money because they are very convinced that they will make a living from Forex trading.
Accept that trade and to win the race and that a low-frequency Forex trading strategy is the best way to make money fast. You will lose more money the more you strive to earn money in the Forex market.
Forex trading success comes from focusing on market trading performance, perseverance, and doing all the little things well day in and day out so your equity curve doesn’t have big swings. Once you truly accept these facts, your thinking will become much closer to what it must be like to be a successful Forex entrepreneur.