The Forex market, as enticing as it is, has almost become a sad financial market to trade in. Many only end up battered participating in it even though all the news and information around makes it look like a gold mine. There are many reasons for the miseries of those traders, but perhaps, the most prominent is their unwillingness to seek help.
Of course, the market can be highly profitable. But to take advantage of that profitability, you might need top trading signals — a perfect instance of seeking help, which unfortunately so many Forex traders are unwilling to do. In addition to the unwillingness to seek help, detailed here are other mistakes many Forex traders make but which you should avoid if you really want to succeed trading Forex.
Trading without adequate knowledge is a common mistake many novice Forex market participants make. Those individuals do not take the time to acquire sufficient Forex education and practice before taking the plunge. Of course, the majority of them usually fail.
To succeed as a Forex trader, you have to study and be properly trained. No matter your experience level, whether newbie, intermediate, or expert, there are numerous educational resources online that will be tailored to your needs. However, ensure that you are practicing as you are learning.
If you fail to plan, you plan to fail. This saying, perhaps, holds truest for Forex traders. It is one of the most important mistakes that the majority of them make. And of course, they always pay for it. Trading without a plan makes your trading haphazard, without any order.
If you are currently losing, do you have a plan? If you do not, develop one right away. It should contain an outline of the conditions that have to be met before you take any trade. Then, always ensure to review it from time to time. If you do that consistently, you will be getting better.
Engaging in emotional trading is another critical mistake you must avoid if you want to become a successful trader of Forex. Some traders, especially novices, often have this compelling urge to trade. Even when the market is not presenting any clear opportunity, those individuals trade nevertheless.
That is wrong. Never trade with emotions. Trade only because of your trading plan. Trade only when the conditions in it are met. When they are not, stay away. Engaging in emotional trading will increase your risks and ruin both your mind and pocket in the long run. So, desist from it.
Leverage is a double-edged sword. It can improve your returns. Also, it can magnify your losses. It is, therefore, quite saddening to see so many traders abuse it. The result for those that do, is not hard to predict. It is often failure!
You should do better. Never abuse leverage. A maximum leverage offering of 1:100 is enough. Anything more can wreck your trading account. Use leverage reasonably, even if you are using Forex Trading Signals.
See, it is impossible that you will not have losing trades as a Forex trader from time to time. In fact, the best Forex traders are also some of the best losers. However, what matters is how many times you lose and how much you lose when you lose.
You have to minimize the two. And you can do that by cutting short your losses and not adding to your losing positions. It is not a surprise that one of the fatal mistakes Forex traders make is doing the opposite of that.
There is never a shortage of trading gurus and experts. Have you heard the expression, “The internet is noisy” before? Yes, indeed, it is. And the Forex market can be noisy, too. That is why you should not follow it all the time. “Whenever you find yourself on the side of the majority, it is time to pause and reflect.”
Do not follow the market all the time. Sometimes, be contrarian. No expert or guru or market noise should ever replace your trading plan.
Trading too many pairs can really lead to your own undoing. It is a critical mistake that has to be called out. As a Forex trader, you really do not need to trade too many pairs. Two or three is enough. All you need to do is to ensure you master the few ones you trade.
The news is very easy to ignore when you are strictly a proponent of technical analysis. However, the fact is that certain important fundamental factors (e.g. the Non-Farm Payroll Report and others) can cause drastic changes in the market. So, you should never ignore them.
Hence, in spite of your being a technical analysis trader, you should also be paying attention to the news. Sometimes, during high-impact news releases, it might even be best to stay away. Incorporating news into your trading strategy will help you to better manage your trades.
Dear Forex trader, you have a long way to go. Hence, you should never feel bad about seeking help when you need it. In fact, not seeking help when it is needed is one of the vital reasons many Forex traders do not succeed. A good example of seeking help is using a signal service. Just ensure that the service you use is a high-probability one.
There you have them, the 9 mistakes you should never make if you really want to succeed as a Forex trader. At Technical Trading Signals, we can easily protect you from those mistakes. All you need do is to subscribe to our signals here.