Whether it's about taking on a new job or starting your own business, the degree of anxiety in an unknown undertaking push you to make mistakes. Online Forex trading is no different.
If you have just entered this industry or you're not making much with your Forex trading, read this article to see if you're making these five common mistakes with your Forex trading.
1. Vague trading plans
Most newbie Forex traders perceive in their first week that their online Forex trading platform is unpredictable. More often than not, they become hasty to make out the most available opportunities in the Forex market.
Here I want you to just think of Frodo who lost his focus on his mission to destroy the Lord of the Rings. Certainly, you will never wish to be like Frodo when you are trading with your own money on the line and aimed to be a consistent profitable FX trader.
You need to outline your risk management rules and refer to best FX journal to record and review your progress.
2. Not Marking a Stop Loss
Trading without a stop loss is just like you are wiping-out the top floor windows of the Empire State building without any harness.
It would just be the fantasy if you can do that, but once you fall off, you will never imagine to clean windows again. You must set stop loss points for your daily online Forex trading. This will keep you to struggle another day when you face loss in trading.
3. Obsess Trading
Obsess trading is when you get furious for a lost trade and aggressively attempt to recuperate the loss. Most of the time, revenging trades set back twice or thrice the position of the previous loss limit.
This effort is put in the hope of quick retrieval of account, which may be difficult. Accept responsibility and do not let your assessments to be collided with your ego.
4. Allowing Losers Run
The bulk of online currency traders lets running their losing trades to the end instead of cutting losses early.
They stick with their egoistic thoughts that either sooner or later, an index will reverse in their favour. With this mentality, you missed out your exit point of trading.
If you have already closed your winning trades but keep running your losing trades and ended it up with. Just ask yourself that would it tilt the odds in your favour?
5. Having Unrealistic Expectations
Setting goals in trading keep you disciplined and motivated. Without them, you may not verily manage your trading risks keep your game face on. So, it is imperative that these expectations should be realistic.
Having unrealistic expectations will upset you with a daily dose of disappointment after a repeated failure in getting this kind of stratospheric goal.
Hope this article have given you an enough food for thought to realize common mistakes in your online forex trading system and consider how to correct these currency trading mistakes for an increased profit... Good luck!
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