Most Common 10 Mistakes Made By Novice Forex Traders
Do you want to try Forex trading and succeed? Begin to study the most general mistakes that novice make on the Forex market.
1. Intuitive business decisions. The currency market is not a casinos. However, beginner traders see it as such, mostly use intuition to make their decisions. Although it can sometimes lead to success, but ultimately, the trader ultimately succeeds in losing money.
2. Unreasonable expectations. Some Forex companies promise in your promotions that you will be wealthy at no time. Do not trust them. Yes, there are people who end up trading with a rich Forex, but there are also those who like selling homes. In both cases this does not happen in a single day. It can take years to create a real experience and turn Forex into a profitable full-time job.
Uncontrolled emotions. The main enemy and the biggest mistake of starting a novice merchant is their emotions. When you see a rise or fall in deposits, beginners may lose their heads and take urgent steps to get more money or to lose. This approach is not good. Decisions must be based, not emotional. To not increase stress, set profit and stop loss and leave the market itself; do not look at it day and night.
4. Inability to use stop-loss and profits. When you place a market order and open it, you endanger your entire trading account. For example, when you open a long position for the EUR / USD pair, you can set a stop loss so that the purchase order will close automatically if the price falls below a certain level. You can limit the amount of losses for each order, especially if you can not track the market at any time. The input row works the same way: it blocks the profit by setting the level at which the position should be closed.
5. Negotiating the Trend. No wonder they say "Trend is your friend". It can try to catch short-term price movements or price corrections. But in reality, you get more and more regular earnings if you follow long-term price trends and sell or buy in the direction of the trend. Always observe the trends of global prices for longer periods and only after exchanging open in less time frames.
6. Short-term business in shorter payments M1 to M15. Beginners may have difficulty negotiating at these times because they have no experience in the synthesis of time. External factors such as news are also important and can cause problems. In this case, trade can be very risky and can lead to large loss of deposits. It is recommended to use longer time intervals such as H1, H4, D1 and higher, where the movements are more predictable and the merchant can make smarter decisions.
7. Keep the losses too long. Unlike beginners, a Forex expert and a trader can determine when a loss trend will not reverse. Instead of waiting for the best, a disciplinary trader will have a loss and close the line. Sometimes life teaches lessons and we have to learn them and continue.
8. Business News. When delivering important data, prices can move tens or hundreds of pipes in any direction in minutes or seconds. Moving is so fast that it is physically impossible to trade well. The market is extremely feverish and jumps up and down. Forex brokers increase spreads and reduce liquidity, resulting in risks and high probability of loss. We recommend that beginners refrain from negotiating in important economic press releases.
9. Too many open spaces. If you open too many posts, you are unlikely to respond to all the events correctly and quickly. It's hard to focus on each post when you get too much information.
10. Excessive exploitation. Usability is a twin-sword because it can improve the efficiency of profitable companies and increase losses in those who fail. This happens mainly in the currency of commerce, where commercial capital can be exhausted if entry into the market becomes bad.
We hope that our advice will help you make good decisions and exchange it successfully.
1. Intuitive business decisions. The currency market is not a casinos. However, beginner traders see it as such, mostly use intuition to make their decisions. Although it can sometimes lead to success, but ultimately, the trader ultimately succeeds in losing money.
2. Unreasonable expectations. Some Forex companies promise in your promotions that you will be wealthy at no time. Do not trust them. Yes, there are people who end up trading with a rich Forex, but there are also those who like selling homes. In both cases this does not happen in a single day. It can take years to create a real experience and turn Forex into a profitable full-time job.
Uncontrolled emotions. The main enemy and the biggest mistake of starting a novice merchant is their emotions. When you see a rise or fall in deposits, beginners may lose their heads and take urgent steps to get more money or to lose. This approach is not good. Decisions must be based, not emotional. To not increase stress, set profit and stop loss and leave the market itself; do not look at it day and night.
4. Inability to use stop-loss and profits. When you place a market order and open it, you endanger your entire trading account. For example, when you open a long position for the EUR / USD pair, you can set a stop loss so that the purchase order will close automatically if the price falls below a certain level. You can limit the amount of losses for each order, especially if you can not track the market at any time. The input row works the same way: it blocks the profit by setting the level at which the position should be closed.
5. Negotiating the Trend. No wonder they say "Trend is your friend". It can try to catch short-term price movements or price corrections. But in reality, you get more and more regular earnings if you follow long-term price trends and sell or buy in the direction of the trend. Always observe the trends of global prices for longer periods and only after exchanging open in less time frames.
6. Short-term business in shorter payments M1 to M15. Beginners may have difficulty negotiating at these times because they have no experience in the synthesis of time. External factors such as news are also important and can cause problems. In this case, trade can be very risky and can lead to large loss of deposits. It is recommended to use longer time intervals such as H1, H4, D1 and higher, where the movements are more predictable and the merchant can make smarter decisions.
7. Keep the losses too long. Unlike beginners, a Forex expert and a trader can determine when a loss trend will not reverse. Instead of waiting for the best, a disciplinary trader will have a loss and close the line. Sometimes life teaches lessons and we have to learn them and continue.
8. Business News. When delivering important data, prices can move tens or hundreds of pipes in any direction in minutes or seconds. Moving is so fast that it is physically impossible to trade well. The market is extremely feverish and jumps up and down. Forex brokers increase spreads and reduce liquidity, resulting in risks and high probability of loss. We recommend that beginners refrain from negotiating in important economic press releases.
9. Too many open spaces. If you open too many posts, you are unlikely to respond to all the events correctly and quickly. It's hard to focus on each post when you get too much information.
10. Excessive exploitation. Usability is a twin-sword because it can improve the efficiency of profitable companies and increase losses in those who fail. This happens mainly in the currency of commerce, where commercial capital can be exhausted if entry into the market becomes bad.
We hope that our advice will help you make good decisions and exchange it successfully.
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