In forex trading there are ten big No-No’s that a novice forex trader should never commit. This is a given fact that over ninety percent of novice traders commits these mistakes and loose their money.
1. Day Trading
Many articles had all been written about day trading but still a number of novice traders take dumb decision of entering to it.
As already been said… Day Trading is the simplest way to loose money in forex trading.
2. Get advise from a Guru
There are “so called” experts that sell advice but only as little as ten percent of it works and the ninety percent don’t. If you’ll buy an advice from an expert make sure that you’ll have the discipline to use it.
But still it’s you that can make yourself successful.
3. A Broker Assisted Account that Says to Work
Can a broker really help get those huge profits in trader?
Reality is – if brokers are good in trading they wouldn’t be brokers they wouldn’t be traders themselves and make money on their own. Chances are they can give you convincing stories instead of profits.
4. Learning to Get Money Using a Demo Account
Paper trading mimics the real scene on the trading world but without the risk and pressure of putting in money. In the cruel world of real trading paper trader’s fall down as easily than traders who don’t use demo accounts.
5. Habitual trading
Some forex traders trade just for the sake of it. They think that if they are not in the market they will miss a move. If you trade just for the sake of trading then chances won’t be in your favor.
Be patient wait and trade only on high odd trades, then you won’t be swift.
6. Mix fundamentals and technical inputs
This is not always productive and chances are you will loose and will be just one of the others that can not combine the two.
7. Trail your Tail
Again patience is the key. Many traders have the perfect system but get bored along the way. Just be patient have a system and be disciplined to stick with it.
8. Over leverage
Don’t pull too much on a trade and get wiped out in the end.
Combined great defense and offense will help you win in online forex trading. You need to protect what you have. Sometimes the best looking and most comfortable trends are the looser.
9. Avoid risk and creating risk
Most often traders who avoid risk creates the risk, they take guarantee and will be stopped out on a trade without getting the chance on a big profitable trade.
Forex Trading is all about taking calculated risk, when the odds is in your favor – protect it and make sure that you’ll never be stopped out by normal market unpredictability.
10. Using too many inputs
Many traders think that complicated systems are the perfect system but with it they are more likely not to succeed.
In forex trading the more inputs the less chances your system succeeds. Make use of a simple system for it is what the world’s most top traders use as well.