Are You Losing Money In Forex Trading
In today forex faq, I am going to answer 2 similar questions at the same time.
Below is the question:
Q1: Any indicators or any system which I have tried have failed me.
Meanwhile I’ve stop trading with forex. But still trade with Demo account.
Q2: I am doing forex trading nearly 2 years but still I am losing money, can you suggest for me which indicator/style of trading I should do?
It looks to me that both of you do not have a working strategy on hand and have started to trade live with your hard earned money. If you have been reading my blog, you will know that I emphasize a lot of trading demo as it is the best way you can test out your strategy to see if it really works.
I assume that both of you are working with a day job and have limited time to trade. Therefore I will suggest that you go for either scalping or breakout strategy.
For scalping strategy, there are more trades available everyday and therefore you will be able to trade when you reach home after work. As for the breakout strategy, the consolidation takes sometime to complete and therefore allows you to trade when you reach home after work unless the breakout occurs during your office hours.
You can find out more about scalping and breakout strategy from the 2 posts that I have written below.
My suggestion to you both is to pick one of these 2 strategies and focus on learning them. Once you have learned them, you should try them out on a demo account until you are able to execute them well.
The problem with new traders is they tend to lose confidence in a strategy once it produces a losing trade. You need to realize that there is no strategy that wins 100% of the time. The most important thing for a strategy is it must make you profit at the end of every month irregardless of how many wins and loses it makes throughout the month.
Sometime a reliable strategy may not produced profit for some trader at the end of the month and it is because of the trader inability to execute the strategy well. Therefore you must always use the demo account as a platform to hone your execution skill before you trade live.
I hope that I have answered your question and do feel free to give your comments below.