Here is a very honest list that can better you as a Forex Trader.
Just like “most” professional traders you got to learn how to analyze your own information. A true trader does all of his own analysis and learn from his own mistakes. If you choose to follow someone then I wish you the best because how are you ever going to learn the right way….? You will end up losing more of your money then you think.
This happens alot and especially to all the noobs. Over Trading occurs when traders are trying to look for opportunities that are not really there. This will result in a very bad executed trade and will result in a loss. Over Trading can also result in making to many trades I will talk about this later.
This has to be one of the most common mistakes forex traders make. Why? because is the biggest advantage that Forex Trading have! Which is the ability to use leverage. Leverage is when you have a mini account but make a big trade. Which can lead to huge losses. I will go over this on my next post.
Alot of traders suffer from this. Many of them attempt to try to pinpoint where a currency pair will turn around and start moving the opposite direction. It’s always good to analyze your trade before pinpointing any currency pair.
Paper Trading has there floss because new traders see huge quick gains and find that they can gain quite a surprising amount of paper-profits in a very short period of time. These noobs now are convinced that they can easily trade in real time with real money and BAM! Within weeks they see there equity drop 50%. The benefit of paper trading is that it will help new traders become more knowledgeable with the basics of interfacing with the market.
Not having a trading plan can lead to losses and not having one can make you go broke so fast you won’t even notice. Basing your trading plan on hypothetical profits or on how well you did paper-trading is not having a trading plan. Having a plan isn’t has hard as you think. A good solution is to ask a trustworthy professional trader to show you his daily/weekly/monthly trading plan. Then ask yourself if you can make a plan that addresses a similar things.
Please! Please!! Ignore all those false trading systems. They will not get you rich quick period. The best bet is to create your own and stick to your own method of trading.
This is way I love Forex because you can make a decent amount with just one pair. Trading 1 pair helps you analyze your trade and makes forex trading less harder. It will also help you see how that pair moves. Want to lose money? Trade 4 or 5 pairs a day and if your profiting from it please shoot me an email and show me your method of trading. Trading only with one timeframe will help you concentrate on learning one time frame. Learning 1 pair at one timeframe can make you a killer trader… Trust me 
Tags: Forex, forex trading
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Very nice and informative. If you need a particular or specific
forex signal trading recommendation then check out a system which is
doing very well for me (at least this month anyway!)
[Reply]
Benny,
I can’t thank you enough for helping me spread the word about ignoring those ’super duper wonderful’ trading systems out there. I’m starting to see the benefits of trading one pair, but for now I’m still trading anything that matches my trading principals that has a decent spread. Keep up the good posts.
[Reply]
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