In every field, there are some costly mistakes that you should watchout for. Forex is not an exception. For this reason, you should not only know them but also know how to avoid them whenever they suffice. Some of those mistakes I encounter as a forex trader are:
1) Overdependence on EA: An EA is a short form for Expert Advisor ( what is normally called "robot" by the layman). EA is a programming script written to simulate trading plans & strategy. There are alot of them out there that promise 100% success. To be honest with you, I tested alot of them. The only one I can recommend to you is Forex Autopilot pilot. You can read more about it at http://tinyurl.com/5cvtmk.
2) Adding to losing trade: I have been asked by most my clients what it means to add to losing trades. It simply means allowing your loss to be greater than the profit. You do this by shiftimg your stoploss whenever price approaches it in expectation that price will reverse in your favour. If your trading paln utilizes 30pips stoploss, stick to it. This is why you need plan your trade and trade your plan.
3) Inadequate knowlege: This is the most overlooked aspect of forex trading. You think attending one forex seminar/course has made you a forex guru as such you feel there is nothing more to learn. Learning never ends my dear. Most of your losses are due to indiscipline, emotions( greed,fear,impatience) and inadequate knowlege.
If you asked how many lots of EURUSD can you trade with a $1500 account on a 1:500 leverage, you will be guessing. Some traders use the trial and error method by changing the volume on MT4 only to see the response NOT ENOUGH MONEY. This is not the brokers problem but yours due to inadequate knowlege.
$1500 account on a 1:500 leverage can trade 5.4 lots max. How do I get this? Last year, I designed a lot calculator using EXCEL programming. I sold it for N4500 at www.forexriskmanager.com. You can check it out. But dont hurry to place an order, I am giving it away for free. Just send an e-mail to forexpips@sendfree.com and you will get it for FREE all yours. What you will give me in return is to tell your loved ones about this blog.
It is only with quality forex education that we can make consistent profit from it. So, share the blog with all traders you know.
3) Taking losses as setbacks: One fact you should put behind your mind before placing a trade is to know that losses are part of the game. If you have a good trading strategy, you will not worry over the meagre losses as long as that system incorporates witthin it a good money management principle. Due to fear of losses, you tend to develop the fear of placing a trade thereby sabotaging/missing some pips due to delay. Punctuality is the sole of every business.
4) Overtrading: This is very common to happen especially when you just had few winning trades continuously. This is when you start assuming that you are on a roll and all the trades that you are going to place will be winners. Well, Forex Trading doesn’t work that way.
5) Looking for a perfect system: No system can be accurate 100% of time. So searching for one such system is just waste of time. Don’t listen to people who say that they know such system.
6) Taking Profits Early and letting the loss run: This is not a right approach. Instead the approach to be used in the trades is the other way round. You should try to limit your losses and let your profits run.
7) Reading the Charts they you want the charts to be: This is most common in beginners. This is a result of urge to place trades. Some traders just want some reason to trade and so they interpret the charts incorrectly.
But If You Want To Really Make Ridiculous Amounts Of Money From The Forex Market On Complete Autopilot, then click here now.
See you at the top,
Hassan Ismail,
MD/CEO Income Legends Concepts
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment