Context of Business

A manual trader generally makes a way to buy and sell trading positions depending on the asset price movement. They carry out trades based on their own abilities. But 90% of traders are still accepting their failure. In this phase, our mission is to help our readers overcome the failure and achieve the best profitable outcome. However, the reasons will vary traders to traders, but these are the primary cause of failure.

Backtesting:

You may hear about the demo account. A demo account mostly used by traders to test the platform before trading live. Not only to test the platform, but it is also necessary to build a strategy. On the other hand, backtesting is not only for automated traders, but manual traders should also do it. It will show you what to expect from a strategy and give you a trading database to compare your live trading results.

Lack Of Education:

Lack of trading education can be another reason for failure. Success in trading depends on how much you have learned before performing the first trade. It is a serious business, you have to get the best education possible. With the help of trading knowledge, you can improve your trading skills. Moreover, it is a magic wand to make constant profits.

Trading Emotion:

Trading emotion is a personal feeling. Moreover, it has an impact on decision making. Bringing emotions into trading is a bad idea, but sometimes it is helpful for traders. Unfortunately, traders allow emotions to take over their trading. Removing emotion from trading is not easy. It is the most difficult thing for traders.

Money Management:

Money management is the key to success, especially when the market gets volatile. By following this rule, one can save their funds. Risk management is mostly necessary for traders who trade with leverage. In binary options trading, traders do not use leverage to execute trades. On the other hand, as per rule, traders are recommended to invest 2% of the money from the capital. It also ensures the long-term sustainable return from fortune wealth.

Trading Plan:

The trading plan is a guideline for traders on how to trade and when to trade. A basic trading plan includes entry and exit point of each trades, trading time zone, and market movement. Moreover, a trader will decide either he will make a short term trading plan or a long term trading plan depending on his trading nature.