Let's get it. You may have committed one (or more) of the following trading violations.
1. Non-stop trading and profit taking
Many forex traders recommend using a mental stop loss. But how many of you actually follow this stop loss? When the price reaches it, do you close, or do you hope the price will return to your advantage?
Never trade without a strong stop loss.
2. Mastering money management
– Almost every trader you meet with a stop loss is much greater than the target profit target. I have learned (and found) that the 1: 1 (or better) risk / reward ratio is already possible. You only have to win more than half of your trades and you will still make money. The goal is to create a system, strategy or signals that can do so.
3. Trading before, during or after a major news event
– Liquidity around highly volatile news events. Although you can sometimes be lucky and earn a few hundred points, you'll find yourself on the wrong side of the trade, or worse, called margin.
My advice: I learned not to trade 30 minutes before or after a news event … this is the safest way to protect your capital …
4. Trading on weekends
Have you ever traded on Friday and stumbled into a position on the weekend? Then, on Sunday, when the market reopened, did you notice that the deal became inauspicious, causing you heavy losses or at worst, summoned the margin? My advice: Do not trade on Friday!
My advice: If you are a daily trader, be sure to close all positions before the market closes on Friday.
5. Listen to the daily broker comment
– The broker's main intention in advising is to pay their positions. This may mean that they will trade as opposed to the news they provided, in order to gain your liquidity; or they may need more people to add to their bias
My advice: Don't feel excited about your broker's tips. Most won't help you. In fact, it may hurt your chances of getting a successful trade.
6. Minimize your feelings.
– Many traders trade in countless demo accounts and never feel like trading in their own money. After that, they get a lot of "play money" on their demo accounts. Then, they try to trade their own money. They believe that the way they trade with their demo will translate into the same success in their live accounts. Unfortunately, most traders lower their feelings and end up trading quite differently than when they started trading their demo accounts.
My advice: Start with an amount of risk capital equal to only / 10% of the entire capital. Never trade for long. For example, if you have $ 10,000 of your total risk capital, invest only $ 1000 in your forex trading account. Then, trade $ 1,000 more aggressively, because you won't have much to worry about (you still have $ 9,000 to trade if you blow up your entire account).
This will help unite your feelings and make you a faster trader than any e-book or training system. Understanding and managing your physical and mental feelings is the key to your success in Forex trading.
7. Spend a significant investment on the Forex teacher
You don't need to spend thousands of dollars of initial investment on a professional Forex coach or teacher, even if he or she is professional and honest and makes full-time online trading. I've been trading (for free) with Mike Swanson just over a month now. I found that there are cheaper and more profitable options available. I own Free4xLesson.com. I have a live trading room and weekly webinars on a range of forex topics, trading in live accounts ranging from about $ 1,000 to $ 10,000 per day of the week), and I had the opportunity to connect with some other traders who were coming.
Just for fun, shoot me a message at Free4xLesson if you made a day (or more) of these seven errors before …