Let's get straight to it. Chances are that you have committed one (or more) of the following trade offenses.
1. Trade without stops and make a profit
-Many Forex Traders recommend using a mental stop loss. But how many of you actually follow that stop loss? When the price comes to it, are you closing out, or do you hope it will return in your favor?
Never trade without HARD stop loss.
2. Mastering Money Management
-Mostly every trader I have encountered trade with a much bigger stop loss than the target. I have learned (and found) that a risk-to-reward ratio of 1: 1 (or better) is actually possible. You only have to win a little more than half your trades and you still want to make money. The catch is finding a system, strategy or signals that can do it.
3. Trade before, during or after a major news event
-The liquidity surrounding news events is very unstable. Although you can sometimes be lucky and make several hundred pips, more often than not you will find yourself on the wrong side of the trade, or worse yet, called the margin.
My tip: I learned NOT to trade 30 minutes before or after a news event … This is the safest way to protect your capital …
4. Trade this weekend
-Did you ever trade on a Friday and get stuck in a position this weekend? Then, on Sunday, when the market opened again, did you notice that trading was ominous, causing you big losses or, at worst, getting margin called? My tip: Don't trade on Friday!
My tip: If you are a day trader, be sure to close ALL positions before the market closes on Friday.
5. Listen to comment on daily broker
-One broker's main intention in giving advice is to push on their own positions. This may mean that they will act the opposite of the news they gave to take your liquidity; or maybe they just need more people to add to their own bias.
My tip: Don't get too excited about broker tips. Most will not help you. In fact, they can just hurt your chances of having a successful trade.
6. Dimming your emotions.
-To many dealers trade countless demo accounts and never really get the feeling of trading their own money. Then they make a lot of "play money" on their demo accounts. Then they try to trade their own money. They think the way they traded their demo will be the same success on their live accounts. Unfortunately, most dealers discount their feelings and end up acting completely differently than when they started trading their demo accounts.
My tip: Start with an amount of venture capital equal to only / only 10% of what your entire capital is. Never trade a demo for long. For example, if you have $ 10,000 in total venture capital, only invest $ 1,000 in your Forex trading account. Then they trade $ 1000 a little more aggressively because you don't want to worry too much (you still have $ 9000 to trade if you blow up your entire account).
This will help consolidate your emotions and make you a better trader faster than any ebook or coaching system. Understanding and managing your physical and mental emotions is key to your Forex Trading Success.
7. Using a significant investment on a Forex mentor
You do not have to spend thousands of dollars of initial investment on a Forex professional trainer or mentor, even if he or she is a professional, honest and provides a full time live trading online. I've been trading (for free) with Mike Swanson for just over a month now. I have found that there are cheaper and more profitable options available. I own Free4xLesson.com. I have a live trading room, weekly webinars on a variety of Forex topics, and I trade live accounts ranging from $ 1000- $ 10,000 almost every day of the week), and I've even had a chance to partner with some of the other merchants who have come.
Just for fun, shoot me a message on Free4xLesson if you've ever made one (or more) of these 7 mistakes before …