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Mistakes in forex trading

Gee Dee

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One of the fundamental rules of forex trading is that a trader should trade that amount of money which he can bear to accept: one should take the same risk as much as he can withstand the losses. But unfortunately traders are not generally accepted this rule, especially the new traders. Forex market is an uncertain field where risk of losing money is present for every moment. So when a trader invests beyond his capacity it will weaken him. So, we should know how much risk we can accept according to our invested capital.


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Trading is a risky game where newbie if he directly enter into the market and placing the orders it definitely risk of loss that is beyond his capacity. 

Usually the newbies who heard that they can trade and on The first sight of market fluctuations itself he look it very hoping. 

He invests The money as high as possible and then when he place the order only he understand what mistake he did and he use to cancel the present order with loss and start to Place another order that also start fails likewise he looses all the money and his hope in the market. That should not happen 

The newbies should have to start placing orders by opening the demo account and understand the market then once he understand this truth start placing the orders with confidence and carefully. 

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where mistakes will always be there, so where we as a trader is trying to always try in a good learning process and routine, business forex business risk role is very big, mandatory for traders that must be routinely increase where the skill maximum ability to where can be maximal also in the way of this forex trading

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Mistakes we must do in this forex trading business, and where should traders always continue to do the evaluation to make us able to trade even better, forex is reminiscent of where the risk is great that there is certainly, keep trying to learn in step by step so we can trading able to be able to generate its benefits easily and consistently

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Mistakes where in running forex trading will always always be done, so where for that we routinely to continue to evaluate for where the error can we learn again, and for sure this forex business business that need to try in learning the routine so that we can make trading in more able to get maximum results in the plunge in his estate account later with instaforex

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Forex is not a get rich quick scheme! Forex traders do not know the importance of forming a trading plan while trading. This is, in fact, essential for trading successfully in this highly volatile market. The Forex market often lacks a clear direction.


Well can't disagree. But it is not always the case that the forex market lacks direction. If that was the case then it would not have been so attractive to the traders. Forex market moves based on supply and demand and with technical analysis traders can determine a direction which can work most of the times for them.

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It is because that is how currency pairs behave. They are volatile and behave strongly in opening and closing of certain markets. A good strategy is to place stop losses well to avoid being bankrupt.



Well I always determine a stop loss before entering a trade. It is a rule of mine and if I don't find a suitable place for stop loss then I don't enter a trade. As you said the market can make a strange move and that can bring losses more than I am willing to accept. So stop loss is a must.

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Guidelines to trade by using Rectangles

In a rectangle, price moves horizontally between overhead

resistance and underlying support

best forex signals and Breakout

A breakout occurs when price closes outside the boundary of a chart pattern.


Touches There should be at least two touches of each trend line.


Trend lengths

A short-term trend lasts up to three months. An intermediate term

or secondary trend lasts between three and six months. A long-term trend or primary trend lasts longer than six months


Tops have price trending into a chart pattern from the bottom,

and bottoms have price trending into a chart pattern from the top


The price velocity leading to and exiting from a chart pattern are often similar even if the direction is reversed.


Undershoot or overshoot

Both undershoot and overshoot occur before a chart pattern begins. Undershoot happens when price briefly dips below

the entrance of a chart pattern. Overshoot happens when price briefly soars above it.


A rectangle forms because

traders want to own the stock at two fixed prices, one low and one

high, setting limits (for a time) on how far price moves.


Prices trend up to the formation and then

oscillate between two horizontal trend lines

before breaking out upward.


Measure rule and take profit for best forex signals

Measure the height of the rectangle from trend line to trend line.

For upward breakouts, add the height to the top trend line; for

downward breakouts, subtract it from the bottom trend line. The

result is the minimum expected move. For a maximum price

target, measure the length of the rectangle and extend it vertically

above the top trend line (for upward breakouts) or below the

bottom one (downward breakouts). The price becomes the

maximum expected move.


Wait before place forex trading signals  for breakout Since you cannot be sure in which direction a rectangle will break

out, wait for prices to close outside the trend line before fx trading 

in the direction of the breakout.


Tall rectangle scalp If the rectangle is tall enough, sell or sell short near the top trend

line and buy or cover near the bottom one.



Watch for rectangles forming as the corrective phase of a

measured move up formation and adjust the target price

accordingly. Rectangle reversals sometimes appear as flat top




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