The trading market is unpredictable, yet it doesn’t mean that you can’t trade the Forex market. If you ask the Singaporean traders, they will accept that it is possible to make regular income in trading. But, there will be differences in how you approach the trades and how other traders approach them. But, sometimes even the traders with the same knowledge of trading and trading experience may understand the same chart in different ways. Why does it happen? Also if they are using the same trading strategy, the results can vary. Hence, it is important to understand the reasons why the results are different. As a beginner, you must try to get some understanding of the things that are happening in the market. Most beginners, enter the Forex market without any understanding. Thus, they leave the market as soon as they entered. Actually, there are many reasons why traders with the same knowledge and experiences understand the same charts differently. Let us check some of the reasons why this issue is persisting in the market.
Not looking at the market with an open mindset
Of course, we understand that you are trading the Forex market with your real money. But the moment you narrow your mindset about the market, you wouldn’t be able to see it clearly. The traders try to hold on to their positions, and this can be one of the reasons why traders understand the same charts differently. Sometimes, you might have a perfect plan and a perfect strategy, but at a point, you might feel insecure because you are trading the real money. This kind of mindset may result in losses, and weak personalities get affected pretty soon. In fact, the way they trade the demo account might be totally different from the way they trade the live account. And you don’t call it practice. However, if you don’t want to face this issue, you must not treat Forex trading as a game. You must not hang on to the positions in the trading even if you have because it creates an imbalance in your mind.
Thinking of the elite class traders
The elite class traders in the exchange traded funds industry always think about long term consequences. They are not biased with short term gains as it significantly increases the risk factors. Due to the variations in time frame analysis, different traders tend to have different opinions about the market. So, stop thinking about short term gains and try to focus on the long term market trend to make a consistent profit.
Becoming overly committed to a position
When a trader risks more than the other, the one who risked more tends to feel insecure because it’s his/her risk. You might consider this is as a common thing that you repeatedly read everywhere, but the issues are pretty serious. When you are overly committed to trade, you might make a mistake. Thus, even if traders have a similar level of experience, skills, and strategies, the one who is overly committed to the position may make a mistake. However, when a trader is overly committed he/she may understand the chart differently than the other. And the underneath reason is emotion. If a trader doesn’t control his/her emotions things can get tougher.
Getting attracted to the view of the chart
As we said, traders with a similar level of experience and knowledge witness the same chart differently. One of the reasons why it happens is most traders get attracted to the view of the chart. When a trader spends time researching and studying the charts, he/she will not be able to overcome the fact that what he/she studied is not what the market is portraying. Hence, the trader becomes arrogant and starts to get attracted to the view of the chart instead of analyzing it. However, you learn when you practice often.