Avoiding Common Forex Mistakes

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Hi,

Every trader who is just starting to trade forex should read

Common Forex Mistakes article. It explains some basic misconceptions that almost any new forex trader has about the FX market and how to avoid them.

Happy trading,

Mike

 

A huge mistake is to marry your trades, get emotionally attached to them, so that every pip lost breaks your heart.

The problem is that we are all humans and it is very hard to get rid of emotions especially when you see your hard earned dollars go up in smoke.

The only therapy I could find is simple - stick to the rules of your strategy and stops and do not change them no matter what. If you still loose money for like 30 trades in a row switch to demo and only start live again when you have some success on demo account.

Hope this makes you a better trader,

Mike

 

Thanks for the reminder F101. Some key points that all us newbies should keep in mind ALWAYS! Here's a nice quote, not sure from whom, but I think it helps to reinforce some of the mistakes in that article.

'A good trader knows the difference between 'intuition' and 'into wishing'.

Thanks again and good trading!

Lux

PS: You may want to test your site in Firefox as it doesn't appear correctly.

 

Thats why I love experts, they follow the rules no matter the market or losses or wins...

Just when programming an expert you need to understand the importance of stop losses, a gross loss is not the end of the world, as long as your net is a profit, congratulations :-D

 
luxinterior:
'A good trader knows the difference between 'intuition' and 'into wishing'.

Sooo true

 

Biggest mistake in trading FX..

1. Trading too many units
2. Over-exposure to one pair
3. Trading against trend without tight stops
4. Pride

 

Master-FX , I agree with you 100%, but you should also through in GREED in your list

 

Mistakes is normailly our disciple that can not be controlled

Nic

 

Obviously money management is one of the most crucial aspects to any strategy. This should include not risking more than 2% of your capital to using smaller lots (micros) which allow more granular control of the real leverage (less than 10:1) of a position.

 

Most mistakes are lack of a strategy has been tested and the discipline to follow the strategy. Most strategies posted are just backtested using EAs which are not reliable, unlike ours that we trade live.

We teach each strategy step by step how we trade it. Can't get any easier.

 

just recently I had a margin call, lost 60% of account value. My mistake was over leveraging an not hedging a loosing trade, hoping it will rebound ( I had a long position on EUR/CAD when price of oil was reaching the 20-year highs) I should have took the losses early in the trade.

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