Most common mistakes in Forex Trading

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

Like your thinking, I think sticking close to the underlying trends has to be worth morte of a look. I am a newbie also, but I would be keen if anyone can recommend reading on this kind of trend. Thanks!

Certainly emotion plays a vital role in a traders career. Thus, one should be well in control of their trading emotions such that they can excel with the planned trade. We need to ensure that we are well versed with the market action and play according to the technical aspects with strong reasoning rather than emotional flow.

Start Forex without knowledge about Forex
Play with emotions

I think that is most common mistakes.

No doubt about that , but between start forex without knowledge and play emotion , i think majority traders will face emotion is common mistakes for them , and i am sure almost of them know it but unfortunately they hard to solves this problem

1 word, 4 letters, LAZY
How many newbie threads on BP along these lines…
“What is quickest way to make big money”
“What is SL and TP”
“Need free EA that is always right”
“Looking for mentor”

People who cant be bothered to learn and expect to be spoonfed, really grinds my gears

the most common mistakes that i have encounter on fellow traders are: Greed. Lack of knowledge, impatience, and the illusion that they can buy a supercar the next day. no. trading the fx is not a gambling or whatever. its an investment. a buissness. and it must be treated like one otherwise it will cost you!

The thing is, that in order to succeed over time you need ALL elements to work well. If even one of them is not in place you will probably lose. For example, you can be self disciplined with a winning trading and risk management strategies, but you choose a bad broker - you will probably lose. Or you can have the best broker, a winning strategy to enter/exit the market, the best broker in the field. and be free of emotions, but you don’t know how to apply a proper money management system - you will lose. And there are many other factors… So dedicate the time to learn all aspects of trading. Otherwise, you will always find another reason for losses. The good news is that once you’re on the track its really really worth it!

For me the common mistake here in forex is for not using stop loss and lack of knowledge on how can we avoid difficulties while we trade.