Before you make a another single trade, I urge you to read this article all the way through to make sure that you’re not one of the many Forex traders who make one or more of the following common trading mistakes. These mistakes can cost you a lot of money. Most likely they are already costing you money today. So, go through this article and correct any mistakes that you may be used to making.
Mistake #1 – Trading With No Method
Most traders wouldn’t be able to present a coherent explanation to one vital question: why did you make this last trade? Why did you choose this price point at this time?
This is indicative of a bigger issue: trading without any reason, with no method. This is your money we’re talking about. You need to know why you’re trading it the way that you do. If you don’t have a system to work with, a trading method that indicates to you when and how to trade, it’s essentially the same as saying that you’re nothing better than a mere gambler. You don’t really have any idea of what you’re doing or any advantage over someone who has no notion of how the Forex market works.
The bottom line is that you have to use a trading method to help you place high probability trades. It’s the only way to succeed long term in Forex. One trading method you may use is the Forex Rebellion system.
Mistake #2 – Trading too often, too much
It feels good to be placing trade after trade, being in the market. It makes you feel like you’re making your money work for you all the time. However, this can also be a huge trap. Overtrading is a bad habit and one that may lead to an abundance of losses.
First of all, when you trade too often it usually means that you’re also placing a lot of bad trades. You need to particularly good at your game to be able to place a large number of trades and win with them. Forex is about quality, not quantity. It’s better to win a handful of trades than to place a whole bucketfull and lose on them. Don’t overtrade.
Mistake #3 – No risk Management
The first goal you need to have is to not lose your money. Only after you control your potential risk do you need to go after the biggest profit you can find. In the mean time, control your risk. The first thing you need to do is to always trade with a Stop Loss to limit your maximum loss on each trade. The second thing is to place only a small part of your account balance on each trade: 2-3%. Exposing yourself too greatly on any particular trade can also be a risk factor.
In Conclusion
You don’t need to trade unless you avoid making these mistakes. It’s imperative that you don’t expose yourself to these loss makers.
Trade well and thrive.
