If you aim to become a successful and profitable Forex trader, there are a number of serious mistakes which as a matter of fact you’ll want to avoid.
To be clear, It should go without saying that you will make some mistakes when learning how to trade at first.
This can only be avoided. This is not necessarily a bad thing, because the error allowing you to learn and grow.
Why should you even bother AVOIDING these mistakes?
Here are a few key reasons that will DEFINITELY make you do it.
- Entering too many trades at the same time
2. Devoting too much time for analysis and planning of trade
3. Putting too much focus on short-term charts
4. Passing the opportunity to trade on a demo account
5. Trading solely based upon the news
6. Thinking that past “wins” guarantee current profits
7. Trading out of desperation
8. Failing to follow the process
9. Making unplanned changes to live trades
10. Entering the market after an optimal entry point has passed
So, Your first step is to come up with something that will be helpful for reducing trading risks.
In other words:
Something UNIQUE and PROFESSIONAL.
And in this article, I’ll show how to do just that.
Therefore, let’s dive right in.
1. Entering too many trades at the same time
If you get into some of the trade at the same moment then you tend to over-trading. Each trade worthy full attention to helping ensure that it is profitable.
Dividing your attention between several trades only lowers the probability of each transaction that resulted in profits. Less is more in Forex trading and the sooner you realize this, the better off you will be.
2. Devoting too much time for analysis and planning of trade
Meanwhile, trade analysis is required, it can take too much of your time. You might even find that you spend too much time in the planning stages and very few actually trade.
There will only be some optimal entry points every day. Do not miss out on too much of this with locked into exorbitant trade planning.
3. Putting too much focus on short-term charts
Trading too often on short-term charts can lead to over-trading and over-trading can lead to rapid loss and approach to gambling such as Forex trading.
In addition, important data are from the graph the higher time frame as seen in the platforms of TopAsiaFX, and this graph tends to be more important than a lower time frame.
With a higher time frame, you will receive a more reliable signal and reducing your stress levels.
4. Passing the opportunity to trade on a demo account
One should not trade with real money before trading with mock funds using a demo account.
Even if you’ve done your homework and be sure that you know how to trade, you need to see in action in the trading platform.
5. Trading solely based upon the news
Do not assume that you know which way the market will move only by the news. Too many traders suffered serious losses as a result of making this mistake. You really have to do technical analysis with fundamental analysis on every trade.
6. Thinking that past “wins” guarantee current profits
So, your last ten trade using the same parameters and selection of all the winners.
Congrats! Now, do not make the mistake of assuming that if you open it again using the same option which will also benefit.
Yes, trading with the trend could result in easy profits rounds, but each trend should endpoint of few. Always remember this.
7. Trading out of desperation
If you feel a sense of urgency to the trade, then you may be better to walk away. a terrible decision came from trading during the period of despair. Take a break, collect yourself, and make a new plan before trading again.
8. Failing to follow the process
Although each trader can use their own strategies, there are general steps that all traders must follow when trading. Skip past some of these (especially the analysis) may result in losses.
Follow the process laid out by the successful traders who have come before you if you want to have the best chance for success.
9. Making unplanned changes to live trades
Just because trading platforms such as the MT4 platform provided by FP Markets allow to change does not mean that you have to make them.
Undoubtedly, strong emotions can come from watching the movement of the price during live trading.
Acting upon this can cause problems, so unless you are 110% positive that you are doing the right thing, leaving open trade on your own!
10. Entering the market after an optimal entry point has passed
Skip the optimal entry point?
Move. Never assume that you can jump into a trade as soon as the incoming missed using the same price movement is expected and profits. Yes, it can sting to lose a great entry point, but others will come.
What really sets the best Forex trader other than the worst thing is that the best ones are those who have made mistakes as mentioned above, but took action to fix them.
Those who do not follow this rule might end up making the same mistakes over and over again, eventually, consuming their trading accounts.
Another thing is many traders use signals which are not usually not accurate. So, if you want to use Forex signals then only rely on someone who will provide you with the best Forex signals.
I’d love to hear what you think about this article regarding 10 Common Mistakes That Every Trader Does.
Specifically, I’d like to know:
What’s the #1 thing you want to follow from this article right now?
Also, I plan on adding more mistakes to the article soon.
So let me know if you have any topics that you want me to cover.