Reasons, impact and solutions:
Timely decision making is a key factor to earn profit in Forex Trading. A single correct and timely decision can result in handsome profit. But at the same time, humans are not immune to mistakes. Sometimes you do not avail the opportunity presented in front of your eye that turns out to be a good catch. Such a situation is termed as Missing good trade opportunity in Forex Trading.
Why traders miss trading opportunities
There are many reasons of missing golden opportunities. Some common of them are:
- Lack of Confidence
- Being in trauma after incurring loss in a trade.
- Insufficient Capital
- Already met the daily quota
Impact of missing opportunities on forex trading
Missing profitable trade pips always has serious impact on a trader. Such impact includes:
- Loss of Confidence
- Damages your account
- Falls in trap of losing streak
- Revenge Trades
- Irrational decisions in an attempt to make up for such a mistake.
Although missed trade chances have serious impacts, yet you can minimize the missing opportunities by adapting to following techniques:
- Maintaining a journal to minimize missed trades. It is also helpful to keep a track of what went wrong and what to avoid next time.
- Setting Price alerts also assists in a situation when you cannot analyze your chart for whatsoever reason.
- Setting and using Entry orders also helps in placing orders at the right time.
- Decreasing the size of position is another effective risk management technique that can aid you in availing a good catch.
- Handling and coping up with loss is part and parcel of Forex trading. You need to learn and understand that Loss in one or two trades in not the end of the world. “Be confident, you can make up for it”.
You can always use vantage point x which trade on your behalf.
Thus instead of ignoring missed opportunities, you should keep a record of them. In this way, you can identify the avoidable mistakes and shield yourself against them in future.