Tag Archives: Errors

Forex Trading Articles

Forex Trading – the 2 Key Errors the 95% of Losers Make

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Most traders lose at Forex trading and a whopping 95% enjoy a total equity wipe out if you want to win then you need to make sure you don’t make the same mistakes…

The first error most traders make is believing is believing the so called Forex Expert.

These Forex experts tell you that you are going to make money with no effort following their Forex trading signals or Robots. Of course anyone who does use these so called expert systems gets a swift wipe out of account equity.

The problem is – anyone can call themselves a Forex expert and they do however most have never made any real money, they normally have no more than a track record on paper which has been done in hindsight – that’s easy! Trading not knowing the prices is real world and that’s a lot harder. All these simulated systems get turned to dust in the real world.

It’s pretty obvious that if there are big gains to be made, you need to know the basics and make an effort to win; this is true in all areas of life and Forex trading , you get nothing for no effort.

The next error is one where traders underestimate the importance of mindset in terms of making Forex profits. Lets look at this it in more detail.

Fact:

Anyone can learn forex trading if they have the right education.

Getting a simple robust strategy together that can make profits is easy – the hard part is applying it with the right mindset.

Most traders simply cannot trade with discipline and keep losses small, while they wait for profits to come to cover these inevitable losses. It’s not easy to take losses, as the market wrong foots you and takes your money – it’s hard. We all have egos, we all have emotions and trading with discipline is very hard. Of course it can be done but it requires you have the following:

1.    Rock solid confidence in your system to perform long term and this comes from education.
2.    The view that you have to lose to win and you can take these losses cheerfully and see them as part of winning.

Forex Trading Is Hard but the Good News is:

Forex trading is NOT the walk in the park many vendors would have you believe and with the rewards on offer you wouldn’t expect it to be however, get the right forex education, the right mindset and take charge of your financial destiny and you could soon be making huge profits in just 30 minutes a day.

Forex Trading Articles

Forex Trading Mistakes – 4 Fatal Errors Novice Traders Make Which Make Them Lose

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Novice traders tend to make one or more of the enclosed mistakes and they lose their money quickly. These mistakes need to be avoided at all costs, so let’s take a look at them…

Forex trading can give you massive profits if you do it correctly but making profits is not easy; that’s why 95% of traders lose money. Anyone can learn Forex trading and win though, if they don’t fall for mistakes and get a good Forex education.

1. Following a Forex Expert

If you really think that you can get rich by following a cheap bit of Software and make no effort, you are going to lose. There are many get rich quick Forex Expert Advisors and robots which claim they will lead you to currency trading success but if Forex trading was as easy as paying a hundred dollars or so and getting an income for life, everyone would be rich!

Forget the easy money message and understand that if you want to make money in Forex trading, you need to learn skills and put in some effort.

2. Over leveraging

I see brokers who offer leverage of 200:1 or more and traders think that to make money, they need to leverage up their investment by the full amount given to them. These traders don’t understand the impact of volatility and soon get wiped out. Any trader should use leverage cautiously and as a general rule use 20:1 leverage or less.

3. Trying to Predict Price Movement in Advance

No one can predict where markets are going to go and prediction is really just guessing. If you do try to predict prices, your predictions will end up as accurate as your horoscope.

Forex prices move to probabilities not certainties and instead of predicting, you should simply trade the reality of price change. A great proven way of doing this is to use a breakout methodology which should be an essential part of any Forex trader’s education.

4. Not Trading with Discipline

Most traders have heard the word but don’t understand how important it is and it’s vital when you’re facing a period of losses. Don’t believe you won’t encounter a period of losses which lasts for weeks, the best traders encounter them and you will too.

When you are losing, its important to keep your losses small and keep following your system with discipline. This is not easy, when the market makes you look stupid, your ego is hurt and your emotions are getting involved. Discipline is based on confidence and an understanding that you must preserve equity in these losing periods at all costs by, until the markets move in your favour and you start making profits again.

The above are mistakes you can easily avoid and if you avoid them and get a good Forex education, you can enjoy long term currency trading success.