Most common mistakes in Forex Trading

There are several strategies out there, choose the one that your comfortable using and easy to understand.

In addition, over-trading should be avoided. Just try not to over do it, trade conservatively.

Its like playing poker for matchsticks… putting down $100 instead of a matchstick certainly grabs your attention and affects your behavior completely. With Forex I think its better just to see the figures as numbers and not money… if we can do that then we would all probably be better traders but easier said than done.

I agree, since money has a negative connotation attached to it. By seeing it in figure would really help traders to look at it in a different perspective…

Cant you put alllllllllllllllllllllll this crap in 1 thread?
19 threads in a span of 2 pages? Commmmon man…

In addition, using candlestick chart would greatly help newbies to determine it support and resistance. Thereby helping you to use trailing stops and other stop orders.

Starting of forex with low learning is a common mistake of traders. When they read about earning and make good profits in demo they think they will easily get their targets. They are not enough experienced to manage their risk . Their attempts to gain high profits become a loss.

trading should be controlled according to traders capability its not necessary to trade everyday if you think market is very volatile and its risky for trading then it should be avoided…

Here here!

Hi Everyone. I am not sure everyone will understand this problem, but I trade the Asian session on the USD/JPY pair. I am a late afternoon USA/mountain standard time trader. I wonder if anyone has the following problem: normally, when I am watching the Asian market, the Yen strengthens by the nature of the market that time. When the Tokyo market closes, the dollar begin to strengthen. This does not happen all of the time, but there is some truth to the fact that pairs gain or lose according to the trading market they are in. Thus my question is, when a market changes in polarity, the typical practice of shorting or buying a currency becomes more complex. Recently, I have lost over $2,500 in my demo account once the market changed. I had gained $2,200 by anticipating the natural tendency of the market. (i.e the yen strengthens during the Tokyo session and the dollar strengthens during the New York session. I have made a lot of money with this theory. I also have produced a “Correction” theory whereby I buy a currency at the end of “Spike” knowing that the market will correct itself over time. This doesn’t always work, but it has provided some high yields. In any event, I was wondering if others think along these lines. I appreciate any feedback.

I think big mistake in Forex is not planning a good strategy and also have no planning and no knowldge. So it is necessary to plan good in Forex.

In my opinion we should have a good strategy and should follow our strategy if we do not follow it is a big mistake. Also we should have good knowledge about Forex.

the most important thing for me is psychological. I know a trader one of the banks…, good analys, but no mental. accompanied by an assistant to handle him, he only determine entry and exit levels, then he stayed away for a coffee.
:18:

Lack of knowledge. :15:

There is a lot of reasons why traders lose money, one of them not discussed so much is not sticking to your trading system, in my case I had a lot of trading ideas, thats all I could think about and that made me switching from one trading system to another running them all a very short time, if I lost a few times I would disregard it and move on to another, or testing out my ideas I tought would work, same thing there, I didn’t give it enough time, I didn’t realise at the time that it takes a lot! of trades before the probability starts to level out. so my advise is find a system test it first, if it’s profitable, stick to it. I would say this is a emmotional thing or problem, having a lot of patiance is important, if I had given all of my systems and ideas the time they needed, allmost all would have been profitable, but thats over the long run, trading is not about making fast money.

Common mistakes especially for newbies is trading without enough knowledge.

the following are the most common mistakes traders in forex make:

  1. Using Too Much Leverage
  2. Over Trading
  3. Picking Tops and Bottoms
  4. Buying Systems on the Internet
    5.Taking Profits too Early

The very first mistake especially for beginners is greediness and believing that when they trade they could earn double, triple and more. And didn’t see the disadvantages and risks involved.

I totally agreed with you, truly real money is not involved in demo account so it make newbies to trade with less emotion. when it come to real money, traders tends to trade with real emotion. Since losing in forex is normal and in every trade there is bound to be loses, every trader should learn to have self control over his or her trade. If at all a new trader wants to trade via live account, He should start up with little money, I mean he should trade with what he can afford to loss.

Yes and i am one of them , i am join this business because i see forex will give big money as instant . then i start this business with bad mindset which i can reach man in short times , but it is not true instead this is bad mistakes that happen very common for every trader