The opportunities for gains do exist, and even in abundance on the foreign exchange market. Before starting on forex, you should know that several traps, however, mark out the course of a trader wishing to achieve these objectives. How do we avoid them?
External Traps: The Tools Offered By Brokers
The pitfalls of Forex trading sometimes come from the tools provided by brokers for carrying out transactions on the foreign exchange market. Regardless of what Forex advocates may say, the currency market welcomes both reliable brokers and unsavory brokers, who rarely follow the safety guidelines enforced by regulatory authorities.
The most common pitfalls relate in particular to the obsolescence or inadequacy of the trading tools with the robots trading (โร บอ ท เทรด, which is the term in Thai) methods used by the forex trader. Certain platforms authorizing the technique of scalping, thus, do not have a sufficiently reactive software capable of executing without delay, the buy or sell orders of their customers.
The problems of re-rating or “slippage” result in large part from the inadequacy of the tools offered with the strategy employed by the trader. Restricting trading bonuses, variable and unrestricted spreads, and hidden fees are all pitfalls that every trader must learn to spot in order to be successful in the currency market.
The Trader: The Main Obstacle To His Success
The main pitfalls of Forex trading lie within the trader himself in his approach to the market. Some traders focus on the idea that Forex contains almost limitless possibilities for profit, and therefore, employ trading techniques that are too risky given their experience and knowledge of the market.
The use of a significant leverage effect, with the sole aim of garnering maximum profit, is one of the most recurring pitfalls. In the same vein, using too much of the capital on a single trade and maintaining a losing position through stubbornness are all obstacles that any trader, beginner or experienced, must learn to circumvent, or avoid if he wants to last in currency trading.