Biggest Mistake to Avoid?
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  1. #1
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    Default Biggest Mistake to Avoid?

    What would you all consider to be the biggest mistake to avoid in intraday trading?

  2. #2
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    Over-trading over-trading over-trading and over-trading. If you start to hit a losing streak cut down on your lot size. Only be risking at most 1% of your capital on a single trading or trading idea. So if you are trading two high correlated pair then only trade 1% between them. If you are lucky most currencies give you a good opportunity once a day during any particular session. Unless you have a system that is producing entry signals left and right, but such a system would be less efficient due to transaction costs. The fewer the trades the better. So you have to make sure that the trades you take are right and you ride that winner. Also, cut your losses short. After a loss I would be cautious about reentry to the market. Nothing worst then getting emotional and making a compound lost!

  3. #3
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    No discipline.

    It's amazing to me how many traders out there enter and exit trades with no real reason like they're throwing dice.

    To be successful, I feel you have to have sort of checklist that eliminates as much of the emotion involved in trading as possible.

  4. #4
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    Default Patience pays, so buy them and hold them

    Quote Originally Posted by swordofrue View Post
    So you have to make sure that the trades you take are right and you ride that winner. Also, cut your losses short. After a loss I would be cautious about reentry to the market. Nothing worst then getting emotional and making a compound lost!
    I agree. Over trading and inpatience were my biggest problems when I first got started. When I lost, I have this urge to hurry and make a re-entry to get my money back...and lost again. Sound familiar? I learned my lesson. Patience my friends is the name of the game. Today I choose to trade using daily time frame and ride the winning trade.

    As O' Wise One Warren Buffett says: "...patience pays, so buy them and hold them."

  5. #5
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    Quote Originally Posted by happygilmore View Post
    What would you all consider to be the biggest mistake to avoid in intraday trading?
    Not being aware of the data release calendar.

    Just watched the US Non-Farm Payroll data come out WAY better than anyone expected. Can you imagine being blindsided by that? Picture yourself being short the Dollar in some regard prior to that release without realizing the figure was due out. Whoa!

    A pending data release completely alters the risk profile of an intraday trade.

  6. #6
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    Since overtrading is the most obvious risk..what are some signs that you are getting close to the edge..that is getting close to the overtrading mark?

  7. #7
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    Quote Originally Posted by littlefranciscan View Post
    Since overtrading is the most obvious risk..what are some signs that you are getting close to the edge..that is getting close to the overtrading mark?
    Well you should define a maximum draw down. How much your capital can go down in total before you stop trading. If you are getting close to that then I would say you are over trading. If you are not scalping I would say most pairs give you a good trade once per session. So I would say no more then 1 or 2 trades per session per currency pair. Say you were wrong about your initial entry but then you realized you were wrong and took the opposite position. That is fine so long as that you really realize that you were wrong. If you take the opposite position for the hell of it then you probably will be wrong again. Also, if you get caught be whipsaw then I would say it would be ok to re-enter the market.

    My personal experience with EURvsUSD is that one trade a day is usually good. Sometimes though there isn't a trade at all. That is something you have to learn to deal with. Some days there will be no trades and just don't get into the market for the sake of getting in.

  8. #8
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    BigPippin is offline The ***iest member of the FX-Men Superior Master Contributor and Member
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    Quote Originally Posted by littlefranciscan View Post
    Since overtrading is the most obvious risk..what are some signs that you are getting close to the edge..that is getting close to the overtrading mark?
    Greed and Revenge I think are good indicators that you are getting to the point of overtrading.

    Sometimes you'll be on a winning streak and start to get a little overconfident and greedy. This can cause you to rush trades without thoroughly thinking them through and can result in you making some really bad decisions.

    On the other hand, you may be on a losing streak and start to get angry at the market. This can cause you to get vengeful and make you want to get your money back which would ultimately cause you to make bad trades and perhaps lose even more money.

    Whenever you feel yourself getting like this, its time to take a break!

  9. #9
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    Thank you both..for your excellent advice.. Setting a maximum draw down and avoiding greed.. I think this should really help me on my new venture in forex.

  10. #10
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    Hello

    For me worst mistake is to have poor money managment.Whatever stupid mistakes you do you will be out of game cause only 1 reason - you lost your money simple right ? And money managment is thing that teach you how to not lose your money even more simple.

    Best Regards

    Vladimir.

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