ONLINE FOREX TRADING MISTAKE - 3 SERIOUS MISTAKES NEW TRADERS MAKE WHICH MAKE THEM LOOSE BIG

Nobody in his right mind would venture into online forex trading with the aim of loosing money but most of new traders tend to do some avoidable mistakes which make them to throw away their hard earned income too early in currency trading. Forex trading online can bring in huge profit if you apply the right technique but getting this profit is not an easy task, that is one of the major reasons most new traders lose money.

Actually, if you have a good forex education and avoid mistakes you can win big in this market. Take your mind off the easy money message and accept the fact that if you want to make an headway in forex trading, you must have the right tools and ready to put in extra effort.


Let's quickly run through those mistakes that new forex traders usually make.



1) Over Leveraging. I have seen some brokers who offer leverage of 200:1 or more and online forex traders quickly jump into this offer and even request for increase in leverage, thinking this is the best way to make money. These traders don't seem to realize the effect of volatility and their accounts get wiped out as early as possible. Leverage should be used with utmost care and the general acceptable rule is leverage 100:1 or less.

2). Forecasting Price Movement in Advance. Predicting market movement before its occurrence is just mere guessing. Nobody can predict correctly the next direction of the market. Forex market is a market of probability and is not certain. Instead of disturbing yourself predicting, you just need to trade the true price changes. A best way of doing this is to adopt breakout strategy which is one of the good manual trading strategy.


3) Trading Without Discipline. This is no news to forex online traders that discipline is the key especially in the period of losses. Don't think you will not experience losses which might even last for some days or weeks, the so called professionals encounter them, so yours will not be an exception. When you are on the side of loosing, its better to minimize your losses and adhere strictly to your trading system with discipline. I know this is not easy especially when the market proves you wrong and you look stupid as if you don't know what are you are doing again.

Discipline is ability to protect the investment capital and remain confident in the losing period, until the market settles down and move in your favor for profit making.


Enumerated above are mistakes you can easily do away with, and at the same have very good trading system. If you stick to this you will surely experience a long term trading success.


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