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Mistakes That Forex Traders Make


ellliottt

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Yeah, over-trading is a very large mistake that Forex traders make. Using high leverage is another problem. A lot of times, new traders use high leverage and over-trade. They do not even try to understand the market. They try to get lucky. As a result, they often end up losing a large amount of money and losing their accounts. It is better to start small and have a plan for managing your losses.

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that will be bad for them if they use it, because that is not good for newbie, especially when they only have little fund and hoping with high margin they can get more money but in fact loss it all, and over-trading is something that not only newbie but for mediocre traders that also want more profit

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Most of the mistakes they have is usually because of not having stop loss strategy or not able to monitor the market to see if they able to have profit or they are in the losses already. I guess its also a mistake to trade with just a little investment or trading capital since we can't survive by having small amount.

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That's true. Not having stop loss and not following your own strategies. Just like me a hard headed trader. lols. I have a solid strategy for three weeks and suddenly in just one wrong move I panic and loss funds. Just imagine two days ago I'm 50% profit on now I'm 25 dollars loss. lols. Or about 10% loss right now. I'm really feel sorry for myself but I have no choice I need to stand up again. SL or Hedging is the best way to prevent farther loses.

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I think the mistake that so many forex trader makes is for them to abondone demo account and go for real live trading account without a good knowledge which can aid and lead them into profit,after abandoning this account and start with real live trading account they always loss more than they can even Imagine.

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Its funny that we all know many mistakes we can do in forex trading and yet many still don't earn in forex. I guess this is a clear sign that we just really don't believe we can earn in forex trading. Because what we only sees is our mistakes. We don't actually find if we are earning or not. I'm happy that some how I see some probability but I never think I can break the habits of losing until now.

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I would like to share with you information about the common mistakes a trader should avoid when getting started in forex trading. This is a list of common forex trading mistakes.

 

1. Using Too Much Leverage

One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.

 

2. Over Trading

Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.

 

3. Picking Tops and Bottoms

Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.

 

 

1. Yes, i agree with that. If we use high leverage, then we may get a chance to lose our funds easily. High leverage leads a way to high lose, to avoid this disadvantage, we may use money management plans to avoid loses. and also to avoid stop outs.

 

2. Overtrading is problem for newbies that they may lose the profits of previous order and even may lose the initial funds too.

 

Lack of knowledge and experience is also the problem for loses.

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How to Overcome Traders Mistakes and Begin to Make Some Profits in Forex

Preparing yourself with a solid basic knowledge of forex trading

 

- Know about the fundamental of forex trading

 

- Learn about what and how forex market really is

 

- Train yourself to getting familiar with the technical analysis in forex trading

 

- Learn how psychological factor affecting in the trading and define your best trading personality

 

- Be aware in risk and money management

 

- Develop your most effective unique trading system based on your knowledge.

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I would like to share with you information about the common mistakes a trader should avoid when getting started in forex trading. This is a list of common forex trading mistakes.

 

1. Using Too Much Leverage

One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.

 

2. Over Trading

Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.

 

3. Picking Tops and Bottoms

Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.

 

Using high leverage is not a mistake. Using high risks is the blunder mistake. We can use any leverage and trade safely with money management plans. Overtrading is really an issue which makes a trader to make loses. I face this problem in beginning everyday. Now, i have some limitations on trading timings.

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  • 2 weeks later...

 

Using high leverage is not a mistake. Using high risks is the blunder mistake. We can use any leverage and trade safely with money management plans. Overtrading is really an issue which makes a trader to make loses. I face this problem in beginning everyday. Now, i have some limitations on trading timings.

 

You are right @hardworks. I myself used to commit this mistake of over trading and ended up loosing my funds. Money management is the most important part of trading and should be managed perfectly as per your benefit. A good money managing strategy avoids such blunders and keeps your account safe from complete broke outs.

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I would like to share with you information about the common mistakes a trader should avoid when getting started in forex trading. This is a list of common forex trading mistakes.

 

1. Using Too Much Leverage

One of the biggest advantages of forex trading is the ability to use leverage or trading on margin. One of the most common mistakes that forex traders make is using too much leverage. Using too much leverage is when you have a small account balance, but make a big trade. If the market moves against your position by just a small amount, it can result in large losses. Commonly, the beginning forex trader will get emotional and nervous and close the trade for a sizable loss.

 

2. Over Trading

Over Trading occurs when traders try to look for trading opportunities that are not really there. It happens to new traders very often, because they just want to trade. The result is usually a poorly executed trade that results in an eventual loss. Over trading can also result in traders making too many trades at once and using too much margin.

 

3. Picking Tops and Bottoms

Many new traders attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. This is something that is difficult even for professional traders.

every trader is different form other so surely they make different kind of mistakes. some are impatient, some put the orders in a hurry and the most dangerous is plying with emotions.emotions are not needed

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I guess the most members mistake made is either they are too passive or to aggressive. This two must be mixed. If the market is volatile we must also be aggressive. if the market is less volatile or stable we must also be passive. Because if we going to be passive when the market is volatile we can end up missing opportunities. while if we become aggressive while the market is stable then we end up opening too many position that when theirs a reversal we going to incur huge loses.

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  • 1 month later...

indeed very true to what you are experiencing an error saying most of us because we did not really get a choice that we must take the current market movement is happening and it is the result of us still do not quite mastered the movement of the market very well and we are always wrong to take action when you start trading

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Investing big amount in forex when you are first timer is a big mistake. Trading in forex as if you know how is a mistake. In forex trading we need to respect the risk that we are taking. The more we realize how risky forex trading is the more actually we can make good income in here. I don't invest in forex anymore. Instead I post in ptp forum that is sponsored by forex broker sites and use that to start trading and make some profit.

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very true with investing by using a large amount of capital at the start of trading we are only going to make we can not control the emotions of trading because we do not know the right way to trade so we will just lose it and it is better for us early trade done using only a small capital because it will make us better appreciate the amount of capital that we use to trade

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  • 2 weeks later...

One of the main mistakes commited by a newbie is to avoid the use of Stop Loss (SL) function while trading which is one of the most important thing in forex. A new trader should take their position with a tight SL to avoid losses which can not be afforded by them or in the worst case avoid a complete blow-up of account.

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may all traders have the same when they were joined in forex trading and when they trade for the first time definite nature of greed that is in them very difficult to remove because they only know how to trade forex trading without knowing the actual and as time went on they will realize all their fault because they already have experience in forex trading

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I don't know but I feel that I'm going to make this mistake and this mistake is trading expanding right away. I have six active accounts right now and still planning to invest 500 dollars this coming January. My one year anniversary. I hope I can make good income in forex trading right now enough that I can have 500 dollars capital to start with. But anyway I just realize that if I want to earn more money I need to take more risk.

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