1-You Don’t Like Losing
Each and everyone of us will experience failure at least once (probably much more than once) in our lives. Although it is difficult to enjoy losing, some people manage it better than others.
Failure can come from different ways. We can forget to get something done, which could lead to failure. We can get something done without much effort, which could result in failure. We can make an error in judgment, which can lead to failure.
In sports, if your opponent plays better than you, it will result in you losing (which is equivalent to failure). What you could’ve done to prevent your defeat is simple; you could’ve performed better.
In Forex, the most frustrating part about trading is being right yet still losing. You studied as much as you could, you came in with a game plan which you executed flawlessly, you performed at the top of your game, yet you still lost. Over and over again. Why? Because, even though the odds are on your side, it is statistically probable that you will lose over and over again.
When explained as simply as that, it may sound easy to get over a couple losses. The hardest part is not knowing whether you made a mistake or not. Are you being unlucky or did you modify something without noticing it? Anyone who lacks experience in trading will automatically start doubting themselves after a couple losing trades in a row.
It is at that stage that you start trading with doubt and start making emotional decisions. You may decide against taking a trade that would’ve been perfectly within your strategy perimeters, or you may open a trade that you usually wouldn’t take.
If you have a hard time getting over a large string of losing trades, maybe it wouldn’t be a bad idea to have a professional manage your account.
2-You Don’t Do It Full Time
If you’re not going to dedicate a good portion of your day to trading (which would include looking at price action for an entry, studying charts for possible setups, practicing your strategy, compiling your trades, reading trading books), you might be better off letting someone who dedicates their professional life to trading manage your account.
In Forex, if you don’t give it your everything and you’re not always on top of your game, chances are you’re going to lose money. There’s people in the market who dedicate their lives to trading; how are you supposed to compete if you’re not taking it as seriously as them?
If you think trading Forex as a side gig is some easy money that’ll add up nicely to your salary, you’re in for a surprise, and you should probably go over your game plan once more.
3-You’re Not Having Fun
I cannot stress how important it is to enjoy trading. The only way you’re going to get through the hardships that come with Forex is if you are having fun. If you don’t like looking at charts, if you feel no need to keep learning and sharpening your skill set, and if you don’t feel amped up waking up in the morning knowing that a trading session is about to start, maybe you should rethink whether Forex is for you or not.
If you wake up grumpy knowing that you’re going to spend several hours staring at a screen, how do you think you are going to react if you start losing, or if the market starts acting in a way that you had not anticipated (which is totally normal)? You are more likely to get angry and make trading mistakes.
There are plenty of reputable traders who could manage your money and provide you with stable returns; why would you have to force yourself to do it?