Don’t believe the lies, many experienced traders lose money on the Crash and Boom Market daily, if you don’t believe me, try and look at their trading history and you will be surprised at what you will see. Personally, I believe that understanding why you keep losing money on the Crash and Boom Market will help you develop a winning attitude that can transform your trading journey.
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I have blown my account twice and I truly understand how it feels. If I didn’t sit down to study the reasons behind my failures, I will still be in the same loop over and over again.
For the records, if you want to have a good run in Forex, you need to sit down and study your mistakes, because if you don’t, you will keep being in the same loop over and over again.
Table of Contents
Why You Keep Losing Money on Crash and Boom
There are many reasons why people lose money on Forex. Some of them includes:
1. Fear and Greed
The two enemies I battled in my first few months in the Forex Market was fear and greed. Sometimes, I will see a good trade opportunity, but fear of losing my money will make me miss the perfect entry point. Sometimes, I will stay too long in the market, before I know the blue will suddenly turn red.
N/B: Battle fear and greed with an open mind.
2. Poor Trading Mindset
I may not know why you are in the Forex Market, but most people are in the market for the wrong reasons. I suffered this same fate during my first months in trading because of the orientation i got before becoming a full time trader.
My number rule is: Enter the market only when you see a good opportunity, if you don’t see any, don’t try to force the market. Forcing the market is why you are consistently losing your equity
3. Poor Trading Strategy
It’s true, most Forex Broker have some assets that are like death traps where they manipulate the market and make traders lose money easily. As scary as it sound, a good trading strategy can help you to understand when to trade and when not to trade.
However, you may fall into this trap once in a while, but with a good strategy, you will understand when to go out of the market.
Read: The Secret to Trading Boom and Crash
4. Poor trading capital
It’s true that you can grow $5 to $300 or more in days or hours with a good trading strategy and money management skills, but having a small equity put too much stress on your equity and a little mistake can wipe up the whole account. If you want to enjoy the Crash and Boom market, have a good equity, develop a good strategy and a good money management skills.
Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.