Trading is very hard (and very risky) if you take low probability trades with a narrow optimum entry window, restricted allowance for volatility and under tight self-imposed time deadlines.
Many new traders immediately take to day-trading as their over-riding perception of the market is that they need to fear losing everything. The response to this fear is to be in the market for as short periods as possible, never over-night and never over weekends.
This is like the driver whose response to having to take a difficult, dark, rainy and slippery road is to drive faster, in order to get home and make this risky journey as short as possible.
Being a trader, I think giving up risk and capital management guidelines that are intended to minimise market remorse means giving up trade discipline in order to gamble on irrational gains which eventually makes forex trading difficult.
Forex trading is anything but easy. Building a profitable strategy, sticking to money management, controlling emotions, these things seem easy in theory but are actually difficult in application.
Though, one thing that has greatly helped me is understanding that I don’t need to be successful ONE HUNDRED PERCENT of the time. It’s okay losing some trades as long as my winners are bigger than my losses.
If traders wish to make money overnight and enter without a plan, it will be tough. Planning, discipline and structure is needed to pull off profit and gain success.
Short-term trading is preferred by most new traders, Its supposed to be less risky.
But compare trading with weather - Will USD/JPY be higher on Monday afternoon than it was last Friday afternoon? Probability about 50%.
Or
Will the daytime temperature in the northern hemisphere be warmer in 3 months than it was today? Probability about 99.9%.
Forex trading isn’t difficult, and it’s a great way to improve your lifestyle. Expecting to be a great trader right away is unrealistic. You’ll make errors and lose money, but you’ll also gain knowledge. The sooner you realise it, the faster you’ll learn. Nobody naturally developed into a brilliant trader.
Everyone had to acquire the skills necessary to trade and adopt the entire procedure. It’s not difficult unless you make it so. You’ll have a lot of adversaries in forex trading, just like in trading in general. But bear in mind that you are your own worst opponent when it comes to success.
Pick one or all of these to lose money: taking on too much risk, betting, or trading too frequently. Although reading the forex market can be challenging, you have the trading guidelines to be able to achieve it.You’ll be protected by rules from making emotional decisions.
Forex trading can be difficult for several reasons:
Volatility: The currency market is highly volatile, which means that the value of currencies can fluctuate rapidly and unpredictably.
Lack of regulation: The forex market is decentralized and not as heavily regulated as other financial markets, which can make it harder to protect yourself from fraud and scams.
Complexity: The forex market is complex and requires a deep understanding of economic and political factors that affect currency values.
Emotions: Trading in any market can be emotionally challenging and can lead to impulsive decisions, which can be detrimental to your trading performance.
High competition: The market is highly competitive with many traders and institutions trying to make profit.
Risk management: It is harder to manage the risk when the market is unpredictable, and the leverage can amplify the losses.
Lack of consistency: There is no guaranteed way to make a profit in forex trading, as the market conditions can change rapidly, making it hard to find consistent success.
Limited control: Forex traders have limited control over the market conditions, which can make it difficult to predict price movements and make profitable trades.
Cause everything, that can bring good money is not easy in this world. You do not have a great salary at start at any work and the work seems also not very easy, but after some years, you earn more experience, as well as money, and things seems not so hard, as before.
You can integrate different indicators to generate a better trading strategy. Traders should use multiple strategies at a time to produce better signals, which help a trader earning big amount from the market. They are all part of technical analysis.