I’ve been in forex trading for more than 4 years now and have lost more than $1000. Looking at the past, I think the most factor that cause the loss is the psychology, such as revenge. Other than that failure to follow the basic rules, such as never risk more than 2% of your account, and never use too much leverage.
Now I’ve changed my method. I know buy the currency it self. For example if I think AUD/USD will go up, I buy the AUD. So If AUD/USD go up, I sell the AUD again and buy USD. The goal is to have more USD. I also avoided opening position before news. What I understand from this strategy:
- I’m not using any leverage right now.
- I don’t know how much I loss or gain easily. Not like before, when I use Meta trader and open position, I will show how many $ I loss, which could effect your emotion.
- I can’t easily enter position, so more time to think about it.
- Currently I combine fundamental and technical analysis.
So far this month I’ve gained 0.66%, which I think could be better probably can reach 1.5% per month.