3 Mistakes In FOREX TRADING That Make You Look Dumb

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3 Mistakes In FOREX TRADING That Make You Look Dumb

Forex has a lot of rules set in order for you to succeed in your trading career. The Forex trading style varies from person to person, but it doesn’t mean you should skip the basic rules, especially if you’re just getting started. 

Here are the top 3 beginner mistakes that we ranked according to popularity.

Taking too big positions

Taking a large position on a trade might be dangerous. The desire to take a big risk is always present. Traders must be able to manage their money in order to stay in the market. There’s no guarantee that the transaction will go your way. So, if you risk 50% of your capital on a single trade and it goes against you, your trading capital will be severely reduced. It could also have a significant psychological impact on you as a trader. To help reduce risk and create a sound approach to entering and exiting trades, it’s important to learn position size procedures.

Taking too many positions

The human brain can only handle a certain quantity of data at any given time. Because each deal requires so much attention, you only have so much time and energy to devote to it. 

Taking too many positions might potentially hurt your trading results. Monitoring too many positions can be confusing and dangerous unless you have an automated trading system that places trades for you.
If you open too many transactions at once without the right automated procedures in place to monitor them, some of them will likely fail. Keep track of how many deals you’re making. It’s advisable to concentrate on only a few trades.

Emotional Trading

It’s great to be enthusiastic about trading, and confidence is always a plus, but don’t let your emotions drive your trading decisions or force you into positions you wouldn’t typically take.

Take a half step back before starting a trade and try to look at it critically.
Is it appropriate for the trading strategy?
Is it something you’re doing based on facts or just a gut feeling?
What would you do if the trade didn’t go your way?
Create a system of cues that will assist you in avoiding excessive emotional investment.

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