Common mistakes

Mistakes are clues to improve. At the same time, errors in calculations do not always lead to losses. The error can have a positive effect. In any case, they should be studied and used for development and for a deeper understanding of trade.

The simplest mistakes are opening positions at the stage of impulse completion, using narrow stop-losses during high volatility, news trading with increased volume, neglecting resistance and support levels.

So many ways to make a mistake in Forex but they all stem from the mistake of rushing into trading and not taking the time to learn and trade on demo

Using too large a Lot size. That has to be #1 mistake.

FredJones posted:
What are the most common mistakes made by beginner traders and experienced traders when trading with a real account?

Over trading, not using stop loss and most important not sticking to the risk reward ratio

croisssan posted:
In general, it is worth understanding that each trader has his own number of mistakes, and it will be quite difficult to combine them.

Making mistakes is a common thing in this market. you just have to be careful.

Mistakes will be there in trading. But we have to learn from our mistakes. If we can't learn from our mistakes, we will never be able to learn.

I believe that the vast majority of common mistakes have direct or indirect connection to psychology. Trading is quite an emotional activity where your money are always at stake, so, in order to make your trading profitable, you've got to control your mind and mentality in order not to fall into greed and fear periods. Also, I'd like to mention the mistake concerning money and risk management. Most people don't really think thouroughly about the lot size and calculating the risks. So. these mistakes are pretty common, from my perspective.

I agree that, but I think most of the problems are problem that come from yourself and THESE are not easy to overcome... Some objective problems can be simply tackled by choosing a reliable broker.

Trading a big lot is a problem. If a trader knows money management and follows it, then he cannot use bigger trading lot than the is supposed to. A single trade should not be having a risk more than 2% of the trading capital. If we follow this, then we will be able to hold us back from using too big a trading lot.

@sharabela Trading big lot is one of the biggest problem among forex traders. They want to make quick money but they do not think they lose the money quickly as well.

@Unellene Finally someone said it and you are absolutely right . Many newbies step into forex thinking it's a money making machine and every trade is going to make them a millionaire which is a solid dream that never comes true. I know how tough it is to make even a dollar in forex. Forex isn't a one day job, it requires a lot of dedication and commitment, which many fail to understand.

marcusobrien posted:
@Unellene Finally someone said it and you are absolutely right . Many newbies step into forex thinking it's a money making machine and every trade is going to make them a millionaire which is a solid dream that never comes true. I know how tough it is to make even a dollar in forex. Forex isn't a one day job, it requires a lot of dedication and commitment, which many fail to understand.

Totally agree with you

marcusobrien posted:
@Unellene Finally someone said it and you are absolutely right . Many newbies step into forex thinking it's a money making machine and every trade is going to make them a millionaire which is a solid dream that never comes true. I know how tough it is to make even a dollar in forex. Forex isn't a one day job, it requires a lot of dedication and commitment, which many fail to understand.

Hit the nail on the head there. Forex is hard. FACT. New traders need to understand that before making their first deposit

The most dangerous mistake is to think that forex trading is all about making money right away. Such a misconception has led to the massive loss of budgets of such naive traders. So, in order to decrease the possibility of losing everything right away, you should forget the idea that you are able to make lots of money in a week.

Everyone wants to become a successful Forex trader, but few want to trade properly. Although Forex trading is challenging, making money in this market is possible since it is easy to invest money.

According to me, overtrading and letting the emotions overpower the skills are the common mistakes that traders make.

skihav posted:
To avoid mistakes in this industry, you need to trivially work on your level of knowledge. For example, a demo account of the Amarkets broker turned out to be an excellent option for me.

Make your mistakes as your learning things to become successful in this market.

I agree trying demo account is good. But I would say trying a demo account in a broker cannot prove how legit the broker is