The Forex market is known to be the best financial market in the world for its numerous superb benefits to traders and investors. Its accessibility, liquidity, volatility, size and requirements make it a cut above the rest. Truly, many businessmen and non businessmen get drawn to this kind of trading for the wowing rewards it promises. Nevertheless, what many outsiders and newbies in this industry do not know is that Forex trading is not literally and wholly easy. Actually, every Forex trader faces some difficulties along the way.
You’ve read that right. It’s not really a piece of cake to be in Forex trading, unlike what many advertisements say. What’s another true thing is that even veteran Forex traders are not exempted from hurdles that one might face while trading.
Know more about this matter. Here are 6 realest struggles that every Forex trader can relate to.
1 – Lengthening patience
The famous proverb that says, “Patience is a virtue,” is indeed true, and if you are a Forex trader, you will agree.
Having a long string of patience is like a talent for many. Here in Forex trading, you will need lots of long strings of it. Apparently, that’s not so simple.
Moving, waiting, moving and waiting again will be something you’d have to do if you are a Forex trader.
As a beginner, studying what the industry is about is a must. Getting trained first and trying trading through demo accounts will make you ready before live trading. It’s so quickly attainable if you will merely talk about it, however, these processes take time, not just overnight but weeks and even months for some. For sure, as a Forex trader, you have to be patient towards everything you have to familiarize yourself with and also the amount of time it requires. Indispensably, you have to be patient with yourself too.
If you are no longer a rookie Forex trader, lengthening your patience will still be needed. Most of the time, it’s still challenging. Plenty of patience is needed when it comes to the timing of your trades. There are times when you already want to enter a position, however, there’s a huge possibility for a better price. There’s a struggle between wanting to move now or to wait and garner better opportunities later.
2 – The tough competition in Forex trading
What amazes many people, even non Forex traders, is the availability and accessibility of Forex trading 24 hours a day. There are specific days off, however, the operating hours are way more trader-friendly compared to others. Moreover, wherever you are, whatever the timezone in that country is, you can become a Forex trader. Amazing indeed.
But on the flip side, that fact presents a few struggles to Forex traders. Why and how? Being open anytime and within anyone’s reach, the competition in Forex trading becomes a tough one. There’s always a trader out there trading anytime of day. There’s always a competitor. This might not be a big problem for long-term Forex traders, but for short-term traders aiming for quick profits, it could be.
3 – Looking for the best trading platform
Forex trading platform options are bountiful. Sweet! But it can also be difficult to look for the best trading platform in such a great deal of selections. You have many considerations to take into account, research and reading to do, reviews and rating to check out. As a Forex trader, you want only the best trading platform to use, and searching for it is not a very easy thing to do.
4 – Outdated information
One of the most serious struggles of Forex traders is the presence of outdated information about Forex. It’s due to some late updates of news sources regarding prices. The root cause is the fast-paced movement of the market and the trading itself, which is usually done online nowadays. Since the market flow is the basis of a Forex trader’s decisions and actions, outdated information will not help.
5 – Finding reliable Forex brokers
Forex brokers are among the people that can help a Forex trader understand what he/she must do and is doing in this business. They help traders connect with trading platforms and enter the market.
Although you can see many lists of Forex brokers to contact, finding reliable ones is the challenge. You have options, but of course, you cannot call them all just to inquire and compare. You still have to write down a few of your top choices, and closely check them out.
Moreover, corrupt brokers and frauds are around. If you’re not careful and vigilant, unregulated and fake brokers might deceive you and get you in trouble!
6 – Managing emotions as a Forex trader
Some people think that you only have to study Forex terms, make trading plans and formulate wise strategies to do well in Forex trading, yet the part where they fail is emotion management. It’s either they are ignorant of the need for proper handling of a trader’s emotions, or they just don’t know how to respond to their emotions.
Once you get overpowered by emotions, you might trade in ways you shouldn’t; you might forget about your well-thought trading plan.
HATS OFF TO FOREX TRADERS!
Forex trading is a business, and just like any other, it’s not something you can speedily triumph in without exerting your best efforts. Furthermore, there could be barriers on the journey, which might make you feel like giving up.
If you are a Forex trader experiencing one or more of them, don’t stay down or angry because these are struggles that every Forex trader can relate to. Because of that, you will realize that they are actually normal and part of the quest.
What you have to do is to be wise, strong-willed, dedicated and disciplined for you to overcome them and thrive amidst them all. If you are a rookie trader now, have yourself educated and trained, equipped and prepared in every aspect. You will personally encounter some trials in the process of Forex trading, but with the right mindset, strategies and people around you, you can succeed.
ABOUT THE AUTHOR:
Nicole Ann Pore is the author of this article.