Common mistakes in Forex trading
Common mistakes in Forex trading and how to avoid them
It is natural for traders in the Forex market to make mistakes in some decisions, and this is something that is beyond doubt, but if the trader continues to commit the same mistakes over and over again, in this case, the matter will not be normal and will result in him not achieving any profits or increasing his capital, but rather losing it all.
We traders must know these mistakes that we commit during trading and must avoid them in the future.
Trading excessively without justification is one of the most common and most dangerous habits of traders, and the trader must beware of it, which is opening many deals without any analysis , which is just for trading.
The best way to get rid of this habit is to adhere to a clear strategy or plan for trading on a chart of no less than four hours.
Losing a large amount in one trade causes a lot of frustration and is usually an incentive to trade for revenge. Unfortunately, this is not the correct way to recover from a loss . On the contrary, it will lead to more losses and a feeling of anger and frustration .
The best solution is not to risk an amount of money that is less than 5%.
Common mistakes in Forex trading: Trading is very simple and easy, but our minds have made it complicated by thinking too much. The trader must be careful in making the decision and not overthink in his attempt to find a signal to enter into a successful deal.
For myself, I prefer reading the currency pair chart at the end of the day after all the economic events and news that affect the currency price have passed, for better clarity of vision and lack of haste in making decisions.
A major problem facing the trader after achieving a large successful deal or several successful deals is arrogance and overconfidence. It is a psychological problem that must be remedied quickly before it is too late because failure to solve it will automatically lead to greed and an intense desire to increase capital quickly and risk a greater percentage that may lead to the loss of everything. You earned it or even your entire capital easily.
Commitment to a clear plan and strategy, while calculating the acceptable loss percentage in each deal.
- Reading a lot of strategies, systems, news reports, etc. All of this information can become an addiction without achieving profits in your account, but rather it is considered an excessive amount of time and effort.
All you need is to become in tune with the market by learning to read and trade the price action.
- Common mistakes in Forex trading, which are trading using a gambling method, is evidence that you are trading without a strategy. In order to preserve your capital, you must follow a fixed plan and adhere to it. Always know that trading with a gambling system will increase the profits of others and your losses.
In the end, the Forex market is full of risks and the trader must be careful of the changing market fluctuations while calculating the risk percentage in each deal, setting a stop loss and adhering to a fixed trading plan.
In conclusion, I ask you to press the follow button, thank you