Following on from our recent posts we are concluding our series on the most common mistakes people make when it comes to Forex trading. It’s our mission to help people just like you succeed at Forex trading and help you jump the most common Forex hurdles that exist.
Here are our final 3 mistakes you need to avoid. (You can catch up with week one and week two if you missed these).
- Over Trading
Many people do not succeed at Forex trading because they trade too much. The reality is when you trade too often you put yourself in an open position which constantly exposes you to market risk.
Interestingly, many traders start out on demo accounts and see a measure of success but then when it comes to entering the real market the results are quite the opposite. This is purely down to emotion! Traders who over trade are trading on emotion which is the worst thing that you can do.
In both our previous posts on this subject we have talked about having a trading plan I place and once again this is recommended so you don’t start to over trade. It is important you know exactly what you want to achieve so you can stay on track. When you move away from the plan, emotion kicks in and you end up trading too much and this is where the costs start to rack up. Gambling mode can so easily kick in and Forex is not about gambling but requires a calculated approach. Look for positons where you think you have the edge and apply a disciplined and focused approach.
- Lack of knowledge and understanding
Many people enter into Forex trading have read a few books and one or two blog posts hoping to make it big. This is not the recipe for Forex success.
Knowledge and understating is vital to succeed when it comes to Forex – you need the right education. It takes time to master the market and if you don’t receive the right education you can end up losing much more than winning.
By all means do some research, read, watch webinars and practice but the best way to get the education and understanding you will require is through ForexLearn. We are the UK’s fastest growing Forex course provider, giving you what you need to succeed.
- Trading without a stop loss
It is quite incredible the amount of traders who operate without a stop loss. It is important to remember that trading is all about preserving your capital first, and making a profit second. A stop loss is in place to protect you and limit any potential losses.
The first thing you need to do when you see a potential trade set up is to check your target to see where your stop loss goes. The stop loss should be placed, where you believe the price will not go.
Don’t make the mistake of trading without this being in place each time, if you do then you are trading incorrectly and no doubt viewing the process as a get rich quick scheme or a gamble. This will more than likely lead to failure in the market.
Each of our Forex courses has been carefully created by leaders in the financial market. We can help you reach new heights of success whether a beginner of more experienced trader. See more about our Forex Learn Elite course here. Created to shape you into a successful independent Forex trader it is an intensive three-day course run from our office.