Common mistakes

@Alexthetrader Placing stop loss in the right place is not an easy task. One needs proper knowledge and experience of reading a chart to place stop loss.

ShamrockEire posted:
One big mistake is to assume that anyone can make money from Forex trading. It just isn't true. Almost everyone loses money. Only the dedicated will prevale

Yes, only the dedicated persons are able to make profit from forex, It’s not everyone's cup of tea.

risk is everywhere , there is no way to avoid , but in spite of having much risk you can bring good amount of profit from this trading place if you can make sure best risk and money management.

all investment is about risk management from a trade decision perspective to a Lot size decision

One of the few common mistake is not having a proper trading strategy which can result in bigger issue, if not taken care of.

As far as I concerned common mistakes in trading activity are usually made not only by novices but by professional traders too. Such mistakes include rushing decisions. Often traders make decisions whether open a position or not, according to their emotions, after a string of losses they've decided to win back what they had lost. It's so unprofessional to make such deisions however as far as I can tell it happens rather often. Never let emotions control you. It's like a postulate of trading activity, you know. You have to control them, not in reverse.

There are lot of common mistakes every trader do when they are new. I also did the same. Like opening trade position before big news events and after the news events. Opening too many lots is another mistakes. Risking more than 1% of the capital is also a mistake. Another big mistake is unrealistic expectation. We come here to make double, triple of our capital over night. But it's the biggest mistake one can have. We also make mistake in choosing broker.

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.