Finding an edge to a trading strategy is very important. Trading edge can be found by backtesting the strategy several times on a demo account on different trading environments where the success rate of the strategy is 60-70%.
I would say the market's high volatility and market understanding is a big challenge. Also, being consistent with returns is a challenging but can be achieved with daily practice. This is fine because I am posting
When I was a beginner, the biggest challenge for me was to find out the correct entry and exit point in a trade. I also had a bad tendency of holding a position open for too long in the hopes of making more money, which has lost me money in several instances but with the passage of time, I have improved myself a lot.
Market volatility is a big challenge for forex traders. Regardless of how strict a plan you create for trading at times, the market can be unpredictable which could lead to huge losses.
In my opinion, having good emotional stability is difficult while trading. Even I found stabilising my emotions while trading hard. But eventually I learnt to manage my emotional conflicts.
Losing money in forex and recovering from it is a huge problem for me. All you have to do is,be optimistic about your upcoming trades. Because you must finally keep going forward by learning from your mistakes and trying to avoid repeating them.
High volatility market indeed involved the risk, but investors like a market that high volatility, because low volatility also lows potential return, forex market that moves dynamic, leads to difficulties for traders.
Starting to trade is still easy. But stopping to trade at the right time is what most traders fail at. The market is highly unpredictable and you may not always gain what you expect. But by sticking to your trading plan, you can save yourself from a huge loss.
"The strategies don't work" That is one of the most typical problems that I believe every trader has encountered. Either you get perplexed or kept questioning why this strategy do not work, you are only attempting to accomplish the hope that it may work out but failed in the end.