This “information” [I]and[/I] £3 will buy you a cappuccino at Starbucks … 
Getting included in day trading is the worst mistake. Try not to do this unless you are an exceptionally taught apt merchant. For most brokers day trading may give little, short-term gains but in the long run, it will cost you to miss major moves where the real money is made.
In my experience still not easy to making consistent profit, using scalping also need more concentration and I don’t like with this strategy because not always I can’t focus on the chart while missing opportunity sometime also causing fail and making emotion, and I like medium term as intraday or sometime swing trade
You have no idea how much I agree with you :(. I have that bad habit always to believe that there is still a chance that the market turns around and my floating loss turns into profit. Well most commonly it doesn’t so risk management is indeed crucial.
Hello brickiv,
Even you follow a good strategy you have to find the one that best suits to you. Of course, you cannot earn every trade that you place but you have to earn more than you lose.
Not taking proper management rules with trading is one of big mistake. Like many traders take big lot size which their account can not manage with investment and risk. SO result in loss.
What I still wonder about is the fact that after saying all of this, many still go ahead and make this mistakes. What could be the problem, why is that we still make same mistake after good advice?
because it’s easier to say things rather than do them, as is life in general!
Like the others have said, chasing a loss is a huge mistake, I still do it sometimes and I’m trying to teach myself out of this. Or messing with the SL and TP and not following your plan and strategy usually result in a loss. I hear often people complain of taking too high risk which eventually turns against them, I guess we should do everything to avoid that even if sometimes it seems like it would reward us.
Many looses in forex trading and some looses more while chasing the lost money so its better to let go these losses and go forward, try coming up with proper plan to become successful in future.
23 responses, and not one single poster said anything about the News calendar. These events are what ultimately destroys trading plans thru not being aware of them.
It was one of my big problems anyways. Every single night, you must go thru and take note of them, whether marking down in your journal or marking them on your chart, you MUST be aware of them.
And also revenge trading is a very common mistake to.
Trading is a difficult and complicated business and we have to need positive approach for success, I think the worst mistake is greed as most of the people take the unnecessary risk due to huge money making, which cause the reason of failure.
Very interesting thread !
True, apart from not actually knowing what you’re doing because you’re undereducated about Forex, being greedy and uncontrolled in your trading is one of the worst things you can do.
Worst thing you can do is open a live trading account before you open a demo account. So many people make this mistake and lose all their money straight away
People only learn through their own experience instead of through others.
It’s rare to learn through others experience from reading about it.
I’m not actually sure that’s such a bad thing all of the time, but for some things it is.
I am new with forex but I have tried demo several time, according to demo, Trading without setting SL is the worst mistake and could make your account empty faster than you blink.
hello. Top2 mistakes are trading directly to a real account of a broker without having tried a demo first and trading without placing any Stop-Loss. Demo can roughly give you an idea about the broker you selected (execution, support, etc) and Stop-Loss is vital to keep losses to a level you can afford.
I actually disagree that a Stop Loss order should be placed on a trade at [U]all times[/U]. There are trading approaches, all be them perhaps more advanced and require thinking outside of the box where stops are not required. A perfect example could be to go long GBP/USD and short on EUR/USD (or variations of strongly correlated pairs, the opposite also true for inversely correlated pairs). Not only would this act as a hedge to mitigate risk, but one could also implement OCO orders (other-cancels-the-other Order) where an undesirable move becomes profitable. The key here would be to really understand what you are doing, why you are doing it and what your expectations of the trade (or cluster of trades) actually is.
It’s all very well saying that a Stop Loss should always be used, perhaps as an aspiring trader it is indeed sensible, but as time moves on and you move away from what is essentially pre-school analysis the doors start to open.
Again, this is just an echo of what you need to know before opening a trading account. It’s not really mistakes, rather it’s the absolute basics. This is akin to suggesting that the mistakes of driving are that drivers don’t know where the front of the car is and they should not sit on the roof while trying to overtake…