ForexSecret123 (13)

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Avoid 12 Mistakes As A Forex Trader

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• The Forex Secret

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Content At A Glance

• Introduction
• 12 Common Mistakes of Beginner Forex Trader
• Conclusion

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Introduction

• As a beginner trader you are going to make
  mistakes as you are learning to trade.

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Contd
But learning from those mistakes if you are
committed to stop them again and again, you might
join the Successful Forex Traders Club
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Contd

• Keep far your self from those mistakes and be
  determined to be a Successful Forex Trader

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12 Common Mistakes

• Over-trading

90 of traders lose money over the long-run when
about 90 of them are trading too much.
There is no logical reason to be in one trade at
a time ever
To stop over trading and for being consistent in
the forex market, change the way you are thinking
about trading and look for the reason why a
potential trade might not work.
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Contd

• Decisions From Short Time-Frame Charts

One of the biggest mistakes that new traders make
is Day Trading

• This leads them down the wrong path right from
• More data are reflected in the higher time frame
  than a shorter time frame

You need more patience to trade higher time
frames, but in return you are getting more
reliable trading signals and less stress
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Contd

• Thinking more about trading on the chart

Traders often make the mistake of spending too
much time flipping through the charts over and
over
At the end they take a wrong trade generally they
might not take it because of over thinking
Build a planned time away from the charts, into
your  trading plan and move in a discipline way
to survive in a long run
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Contd

• Trading With Real Money before Demo Account

This mistake is like a death-sentence for your
money, yet time and time again, beginning traders
do it.

• Traders start trading without testing their
  strategy

• You dont even know if your strategy is effective
  for your trade

To be a profitable trader first test your
strategy your ability on a reputable demo
trading platform

• As a result they meet lose again and again
  because of silly mistakes

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Contd

• Sucked Into News Distractions

If you fell into the black hole of news
distraction, you will never get out of it until
your all money is gone.

• Based on trading economic news traders place a
  trade

• But before publishing the news, its already
  reflected in the price action experts acted
  upon it.

As a result most uneducated traders to lose their
money. So, dont trade solely on news.

• After publishing the news, price quickly spikes
  one way but then whipsaws back the other direction

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Contd

• Not Understanding Random Expectation

• You never know the sequence of wins and losses in
  a sample size of trades.

One huge thinking error that every single trade
traders take has about an equal chance of ending
up a loss or a win.

• You could get 10 losses in a row within say a 100
  sample size of trades

So focus on the end result of a large series of
trades, you might in profit even after a random
losses.

• But after those 100 trades you could still win
  60 of the time.

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Contd

• Urgency to Trade

• You absolutely must realize and accept that
  trading cannot start off as your Plan A

Huge mistake to have a sense of urgency because
mental strength is required in such risky
complicated platform.

• You should maintain a side job make sure not
  invest all the money though you are in profit

You have already written signed your death
certificate in the market, if you are too much
emotional.

• Trading success comes when you are calm,
  collected and literally do not care if your
  trades win or lose.

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Contd

• Confidence Less in Own Decision

You should strict at your decision at the time of
trading unless there is a monumental shift in the
price action

• Very often traders analyze market, find signals,
  set up it find it in unexpected situation later.

You cant afford too much weight to any one trade
because its stupid to do so when its the large
series of trade outcomes that matters
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Contd

• Focusing on Money Than Process

You have to get out of your own way and let the
process take over.

• Traders spend too much time on money reward

You should not think about profits because those
things are ONLY a symptom of correct trading
process and correct thinking

• But spend less time on strategy, trading
  properly, managing risk, sticking to it etc

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Contd

• Meddling in Trades After Setting Up

• Especially beginners, do the complete wrong
  thing, they meddle with most of their trades,
  screw them up and lose money as a result!

one of the biggest mistakes traders make is
meddling in their trades after they enter them.
About 90 of the time, after you enter a trade,
the most profitable course of action is to simply
do nothing most of the time!
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Contd

• Late Entry with Bad Price

• You saw a trade setup you liked, but you didnt
  enter because of some reasons

You simply have to wait for the next opportunity
and remember that the market will be there
tomorrow

• Then you came back later to the charts and saw
  price took off in your favor

So, dont be in a rush to trade or to enter a
trade you missed because this is emotional
thinking

• But, the last thing you want to do is enter the
  market after its already taken off without you.

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Contd

• Not Pre-defining Risk Allowance

If you have not done this and youre trading
live, then you need to stop trading live until
you have worked it out.

• Many traders dont even sit down and work out
  what dollar amount they are comfortable with
  losing per trade

Make sure its an amount they are financially and
emotionally OK with losing on any given trade.
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Conclusion

• Youre going to make mistakes as you learn and
  trade the markets, especially when youre first
  starting out.

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Contd
But, what separates the winners from the losers
is learning from mistakes.
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