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

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

What Is The Online Trading?

Simply put, online trading is the act of buying and selling any financial product through an online trading platform. Usually, trading platforms can be provided by the online broker you choose or they can be independent. In the case you’re interested in trading the Forex market, one of the most used trading platforms is the MetaTrader platform, which in independent from any broker.

Since it’s one of the best Forex trading platforms, many online brokers recommend it and you can use it without any problem. Either when you want to use a demo account or a real account, you just need to open an account with the broker and download the MetTrader platform to your computer, When it asks for your login information, you should use the data you got from your broker and you can actually trade using it. This makes online trading a lot easier.

In the old days, when you wanted to buy or sell a stock, you would need to call your broker and tell him what to do. With the Internet and the new technologies that are now available, you just need to download and install a simple software and you can start trading online.

One of the main advantages of Forex trading is the fact that, even if you’re a beginner, you can test your skills before you start trading real money. For that, all you need to do is to open a demo account with any broker of your choice – and this step also allows you to know more about the broker and how reliable they really are -, and start trading. You can choose the amount that you’re going to start with and then you can practice for the time you want.

Even if you’re not a beginner, demo accounts are a great way to test your trading strategies in real time. Even though you may have designed a trading system that has been proved to work with backtesting, this doesn’t assure you that it still continues to work. So, opening a demo account and following all the rules of that trading system will allow you to know if it’s working, what’s not, what can be improved, improve it, and start over once again.

Another important advantage of online Forex trading is the fact that there are no commissions. Unlike when you’re trading a stock, where you need to pay the broker the transaction fee, in the Forex market that fee doesn’t take place. The only thing you need to pay that slightly resembles a fee is the spread (the difference between the bid and the ask price).

Author: Editorial staff of 70trades reviews blog