Why do some traders fail when they start doing online trading?

Some traders fail when they start doing online trading. Why is it happening? How can they avoid it?When we say that some traders fail when they start doing online trading, we do not mean to lose money: everyone who trades can lose money, this is part of the rules of the game. The traders who fail are those who lose (very little, no matter), they are discouraged and stop trading. Why is it happening?

Not everyone was born to do online trading

Online trading can be a source of great earnings but you should not think about trading as a machine to make easy money. When you start, the online trading does not take a big capital (you can start with a capital of just 10 euros) but it takes courage and winning mindset.

Making online trading means doing market operations, many transactions. Some of these will close in loss, others with earnings. Even millionaires traders lose money on some operation.

Those consider any loss as a tragedy, they are not really fit to do online trading. Better for them to do something else.

The winning trader is not the one who knows complex strategies, after all the strategies you learn or you can copy automatically using a social trading broker. The winning trader is the one who is capable of dominating the emotions.

And unfortunately not all are capable of it. To avoid loss as a trader is important, then, do an analysis of your personality to figure out whether you are able to withstand trading stress or not.

The wrong trading platform

Needless to go around: The online trading platform that you use it really makes the difference. In many cases, you can lose money because of a wrong choice.

The most striking case is that of unauthorized platforms: choosing a platform like that means losing all your money, because in most cases they are real scams.

scam-tradingBeware of scams

The worst way to start doing online trading is to believe the promises of easy earnings. Systems such as 1k Daily Profit, safe and instant gains. In fact, they are systems that do not work and that, indeed, they make you lose all the invested capital.

Those who start doing online trading should never believe, for any reason, to that kind of promise. They are fake and deceptive promises, designed to drive the trust and money of the less experienced.

Online trading is not a way to make easy money: to earn it requires an authorized and regulated platform, it takes commitment and takes time to devote. Anyone say something different, probably, is trying to cheat.

Author: Editorial staff of 70 trades reviews blog


Stop loss: what is it and how to use it

Stop loss are a tool to control trading losses. You can lose with online trading, you have to remember it always. Even the best traders, those who can make millions, are not immune to losses because no one can control what the market does. Good trades are not afraid of losing money, simply using the best tools to control the risk. The best tool to control the risk of loss is called stop loss.

Using stop loss is absolutely necessary if you want to keep track of your losses. It is a simple tool but must be thoroughly understood.

A stop loss is the maximum level of loss that a trader is willing to accept. As you open a position on a trading platform, it is always advisable to fix the price level at which the platform automatically closes the position. It’s a really simple procedure, even for those who do not have much experience and so always recommend doing it.

stop-loss-chart-explainHow to set stop loss

The novice trader who has come to this point of the article is surely thinking that stop loss is a great idea (he is right) and has already figured out what the right loss threshold is willing to accept: 0. And here you are wrong.

The problem is that the price of an asset on the market varies continuously and so if you stop the loss to zero you seriously risk that your position is closed immediately because there is a small loss. In practice, if you set the stop loss at zero, many operations would be closed immediately. Online trading would be a waste of time. Most of the operations would be closed before they could generate profits.

It’s obvious that fixing an excessively large stop loss also has negative effects because the expected losses could be excessive. Fixing stop loss is an art that you learn with practice.

Forex and global markets. Focus: Japan

trading-markets-70-trades-reviewsThe japanese index Nikkei 225 continues to grind records with the sixth consecutive rise, most probably beacuse of the Prime Minister Shinzo Abe’s election affirmation. A victory that encourages investors to continue the ultra-expansive policies of the Japanese central bank. The japanese index updated this historic record since its inception in 1950.

Europe moves more cautiously awaiting the Federal Reserve decisions (considering the Janet Yellen’s succession and Donald Trump decisions) and the European Central Bank.

In this context, the euro is slightly upward and in the US there is optimism around the quarterly season, which according to Goldman Sachs will be better than expectations.

From the macroeconomic point of view, in Japan, the SME index slowed down in September, but as seen it did not affect the markets.