1. Wrong Broker : A lot of forex brokers are horrible; get a good one. Read forums and chats in several different places to get an unbiased opinion.
2. Trading During Off Hours Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.
3. Trading Against Prevailing Trend There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you 're trading against the trend.
4. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.
5. Not Trading Around s Time : Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow).
6. Ignore Technical Conditions : Determining whether the market is over-extended long or over-extended short is a key determinant of near-time price action. Spike moves often occur when the market is all one way.
7. Lack of Confidence Confidence only comes from successful trading. If you lose money early in your trading career it's very difficult to gain true confidence; the trick is don't go off half-cocked; learn the business before you trade.
8. Being Too Smart : The most successful traders I know are high school ****uates. They keep it simple and dont look beyond the obvious; their results are excellent.
9. Stop Losses : Putting tight stop losses with retail brokers is a recipe for disaster. When you put on a trade, commit to a reasonable stop loss limit that allows your trade a fair chance to develop.
10. Relying on Others : Real traders play a lone hand; they make their own decisions and dont rely on others to make their trading decisions for them; there is no halfway; either trade for yourself or have someone else trade for you.
11. Too Many Charity Trades : When you make money on a well thought-out trade, dont give back half on a whim; invest your profits from good trades on the next good trade
12. Too Much Detail : If you are trading more than 2 indicators, then you need to clean house. Having many indicators stifles trading and finds reasons not to trade. A setup and a trigger is all you need.
13.Overconfidence : Trading is not easy; statistics show a 95% failure rate. If your doing well dont take your success for granted; always be on the lookout for ways to improve what you 're doing.
14. Knowledge Deficiency: Most new forex traders do not take the time to learn what drives currency rates (primarily fundamentals). When some news or a statement is due out, they close out their positions and sit out the best trading opportunities; they are taught to only trade after the market calms down. So essentially they miss the whole move and then trade the random noise that follows a fundamental price move. Just think for a moment about technically trading the aftermath of a price move; there is no potential.
15. Rumors : Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.
Hope its will help all of you..
It is very sad that losing money in the forex is very easy and there is no sympathy when you lose, but only congratulations when you win. There are many loopholes in traders' attitude which is always sucking their margin. One I would like to point to is emotional authority, most traders are preys today because they are primarily prey to their emotions. Being definite and mentally strong while been flexible only when necessarily helps a lot when trading.
each trader does not want to lose money in forex, forex risk was especially high. the risk that we need to be careful when trading. loss in forex we can not eliminate, we can only minimize the risk of loss trading with using SL. With SL, the greater risk can minimalized well
Forex is a win or loss affair. It could be that George Soros once broke the bank of England, carting away with $1billion for just a day trading. This is a big yet which is very very hard to replicate because actually you don't need a professional course to learn how to lose money here- it is pretty easy. One way I would however point out is mismanagement of technical analysis. Traders tend to heavily concentrate on technical analysis and outstanding handling of indicators forgetting even about simple management of price actions which is first the indicator that prompts its secondary colleagues. Such that even when predictions from advanced technical indicators are wrong, there is no longer the intuition or natural ability to detect the error.
many factors that cause a trader to lose money. but the main factor that is often experienced by traders as a cause of losing money is a psychological factor. in our forex trading not only requires skill but also requires good trading psychology
how to avoid losing money in forex trading is to try to have a good risk management, with good risk management will allow us to trade with the maximum, and therefore try to continue to improve risk management either by always using the SL when trading
if we have a good risk management then we risk losing the money can be avoided. Forex is a business that has a high risk, the risk that it is to be successful in this business then we need to have a good RM, so the risks can be minimized with good
thanks for your tips. i learn some thing with it . wrong broker is problem. i don't want change the broker.
I think first step of forex trading is to gain lot of knowledge about Forex. If you have not great level of knowledge and skills then it will be very hard for you to make good progress in Forex.
losing money is a very painful thing, because forex is high risk, the risk that we need to be able to have good risk management to minimize the risk of loss. Always use SL when trading will allow us to minimize the risk of even greater
it is good. we can avoid some lose with this tips. the best way is control our emotion in trade. we usually lose it. we will lose money after that
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