Common Forex Trading Mistakes to Avoid If you consider yourself to be an apprentice forex trader and you know for a fact that the experience you’ve got is great, then the tips, tricks and advice written in this article are exactly what you need. Being a successful Forex trader is a blessing and a curse and it’s not that common, but it’s definitely possible. What we’ll shed light on in this article are the common mistakes of traders that, if you avoid them, you will make another important step to improve your career as a Forex trader.
Random decision-making Traders should know where they plan to open and close their position before entering any market, based on a specific system they are following. Setting this ahead of time helps traders concentrate on their system and avoid second-guessing their decisions. It can also diminish losses by having stop-loss orders in place. It’s important to keep in mind that the market may not always decide where you place an order.
Trading on emotion Keeping your calm and retaining a balanced state of mind is crucial when trading in order to remain focused on important events. It’s rather an easy thing to say but very tough to do especially in the heat of the moment when you have to make a split instant decision. Beginner traders tend to trade with their emotions and they fail to recall all the things that they’ve learned.