Let's handle it. It is likely that you have made one (or more) of the following trade offenses.
1. Trading without stopping and making a profit
-Many Forex Traders recommend the use of mental loss. But how many of you actually follow this stop loss? When the price comes to that, do you close or do you hope it will come back in your favor?
NEVER trade without HARD stop loss.
2. Mastering Money Management
-Almost every trader I've encountered deals with a much greater stop loss than the target profit target. I have learned (and found) that a 1: 1 risk / reward ratio (or better) is actually possible. You just have to earn a little more than half of your trades and you will still make money. The catch is finding a system, strategy, or signals that can do it.
3. Trading before, during or after a major news event
-Liquidity around the news is very volatile. Although you can sometimes get lucky and make a few hundred pips, more often than not, you will end up on the wrong side of the trade, or worse, a called margin.
My advice: I learned NOT to trade 30 minutes before or after a news event … This is the surest way to protect your capital …
4. Weekend Trading
-Did you ever trade on a Friday and stay in position over the weekend? Then, on Sunday, when the market reopened, did you notice that the trade had turned into a sinister one, causing you huge losses or, at worst, gaining a margin? My advice: Don't trade on Friday!
My advice: If you are a day trader, be sure to close ALL positions before the market closes on Friday.
5. Listen to Daily Broker's comment
-The main intention of the broker when giving advice is to push his own positions. This may mean that they will trade the opposite of the news they have given to get you liquidity; or maybe they just need more people to add to their own biases.
My advice: Don't worry too much about the broker's advice. Most will not help you. In fact, they can simply hurt your chances of successful trading.
6. Decease your emotions.
-A lot of marketers are trading countless demo accounts and they never really feel they are trading their own money. After that, they make a lot of "play money" on their demo accounts. Then they try to trade their own money. They think that the way they market their demonstration will translate with the same success in their live accounts. Unfortunately, most marketers give up their emotions and end up trading completely differently than when they started trading their demo accounts.
My advice: Start with a venture capital equal to / only 10% of your total capital. Never trade a demo for too long. For example, if you have a total of $ 10,000 venture capital, invest only $ 1,000 in your Forex trading account. Then trade that $ 1000 a little more aggressively as you won't have that much to worry about (you still have $ 9,000 to trade if you blow your whole bill).
This will help you consolidate your emotions and make you a better marketer faster than any ebook or coaching system. Understanding and managing your physical and mental emotions are key to your Forex trading success.
7. Spending a significant investment on a Forex mentor
You do not need to spend thousands of dollars to make an initial investment in a professional forex trainer or mentor, even if he or she is a professional, honest and full-fledged person, trading online. I've been trading (free) with Mike Swanson for a little over a month. I have found that there are cheaper, more profitable options. I own Free4xLesson.com. I have a live trading room, weekly webinars on an array of Forex topics, and I trade live accounts ranging from $ 1000- $ 10,000 almost every day of the week) and even had the opportunity to contact some of the other traders who came .
Just for fun, shoot me a message on Free4xLesson if you've ever made one (or more) of these 7 mistakes before …