This article is all about forex trading for beginners and mistakes NOT to make and the fact is most new traders do make them. Avoid them at all costs here they are…
1. Trusting a Forex Robot
You will make money for life by paying $100.00 for a forex robot. Does anyone believe this?
Yes thousands of traders – but what they really need to look at are the track records there all simulated in hindsight and not real and anyone can do that.
If you really want to wipe yourself out, using a 100 buck forex robot is a good place to start.
2. Day Trade or Scalping
This method is doomed to failure you can’t win because you can’t get the odds on your side and all short term volatility is random.
Sure, you hear day trading system vendors say they make money – but like robots above its simulated profit and you can’t spend simulated profits
3. Predicting Prices in Advance
A great way to lose. Prediction is another word for hoping and guessing and that won’t get you far in life, let alone forex trading.
Trade price action as you see it and not as you think it might be otherwise your predictions will end up as accurate as your horoscope.
4. Trading Forex News
The problem is prices don’t move to the fundamentals, they move to how traders perceive them and sentiment and you can’t trade news events. That’s why market crash when there most bullish and rally when there most bearish.
5. You wont get Weeks of Losses
Yes you will and you may even get months. That doesn’t mean you can’t win, you can but you have to lose to win. Many traders believe all the nonsense they read about trading with scientific accuracy and making a regular monthly income, well that’s not forex trading!
6. Over Leveraging
A very common error just because a broker gives you 200:1 leverage doesn’t mean you need to use it.
Most traders leverage up to high and a small move sees there stop hit and there trades wiped out. Use lower leverage, if you want to win.
7. Not Understanding the Odds & Money Management
Most traders simply don’t understand the odds of success and a fatal errors is to think the risk reward of a trade is the profit target – the stop its not.
We don’t have time to discuss this in greater detail here, just look up our other articles. If you don’t get your money management right, you will never win.
8. Not Knowing Your Trading Edge
If you ask most traders what their trading edge is you will be met with a blank expression but you need to know it and have confidence in it to lead you to success!
Your edge is why you will succeed when 95% of traders fail. If you don’t know what your trading edge is – continue your forex education until you do.
9. Lack of Discipline
If you don’t have a trading edge and know why you are going to succeed then you won’t have discipline.
Discipline is vital to currency trading success. You need the discipline to take losses short term and stay on track, to hit the winners and make overall profits. If you don’t have the discipline to follow your forex trading system, you don’t have one
10. Forex Trading is Easy!
Partially right it’s easy to learn but far harder than most people think to make money at and that’s why 95% of traders wipe themselves out quickly.
The Good News is
If you can get the right forex trading education and adopt the right mindset, you can learn currency trading the right way and make a great second or even life changing income in just 30 minutes or less a day.
The key is to work smart not hard, avoid the myths and losing traits and focus on being a winner.