Forex Trading: 10 Common Errors That Cause Equity Wipe Out
Here are ten common errors in forex trading tat cause equity wipe out. 95% of traders lose and they make some or all of these errors. If you do then you will wipe yourself out so learn them and avoid them.
1. Trying to Predict
Most traders try and predict where prices will go but this is simply relying on hope and you will see your equity disappear quickly!
You need to trade on the reality and that means waiting for price momentum to confirm the trend is going your way.
If you don?t know how to use price momentum indicators learn or lose.
2. Following a Scientific Theory
Follows on from the above ? markets are not scientific so avoid theories such as Elliot Wave or Fibonacci numbers.
Its pretty obvious markets are not scientific, because if they were we would all know the price in advance and there would be no market ? PERIOD.
When you learn forex trading the most important part of your forex education is seeing forex trading as an odds game.
If you trade the odds you will make a lot of money.
3. Trading To Much
Most traders like to trade all the time in case they miss a move and end up trading signals that have poor odds.
Keep this fact in mind you get your reward for being RIGHT not for effort or how often you trade so trade only high odds trades and they don?t dome around often
4. Buying From a Vendor
There are numerous sharks out there who say they will make you rich for a few hundred dollars!
Really?
If the forex trading systems were as good as they claim they would be to busy making money to bother you.
Avoid them and don?t fall for the hype, they never have a track record to back up their claims
5. Poor Money Management
If you don?t know how to place stops then you will lose also over leveraging will kill you. Play great defence first and the profits will take care of themselves
6. Not having The courage to Hold Profits
Most traders get so excited they have a profit they take it early! If you do this you will lose ? have the courage of your conviction to run trends for weeks or months if there going your way.
7. Chasing your Tail
Be patient with any forex trading strategy or system.
At some point you can expect to lose for weeks or months (that?s not the systems fault it?s the markets) judge your gains over years not months.
8. Trading The News
Trading news stories is dumb ? you have huge volatility and as the news is discounted in a split second, its a lottery and you wont win - you will simply get murdered by volatility.
9. Mixing Fundamentals and Technical’s
There two separate disciplines you cant mix them ? choose one and stick with it. In our view the best way to trade is with forex technical analysis.
10. Day Trading
You can make money day trading!
Why are some trades so stupid?
Its 100% guaranteed way to wipe out your equity as the data is to short and you cant use it to get the odds in your favour. If you can?t get the odds in your favour, you will lose ? PERIOD.
This lead on from our point about vendors selling junk systems that have no chance of making money and day trading ones are the most popular ? try and find a real time track record and you will look for a long time!
Finally!
There you have it 10 errors to avoid and if you do you will have a great chance of making big gains - fall for any of them and you will lose your equity and join the 95% of losers.
NEW! 5 X Critical Trader PDF’s & Much More Claim your FREE PDF’s and demo account and learn Forex Trading and also get: Breaking financial news, tight pip spreads, guaranteed stops $100.00 minimum investment and 400:1 leverage at www.freeforexguidesonline.com
MOST VIEWED POSTS
-
Successful Forex Trading
Forex trading is fast becoming one of the easiest ways to earn large amounts of money on your investment. Then again, it can also be the easiest way to lose all of your money in a short period of time. That is, if you do not know what you are doing. The fact is that [...]
-
Forex Trading Strategies: Self Discipline Is The Key
The biggest appeal of Forex trading is that it offers instant wealth creation. But an offer is nothing more than an offer and the opportunity will pay off only for those who approach the foreign exchange market equipped with Forex trading strategies. The strategies should be well though out, unique if possible, and leave the [...]
-
Forex Trading: A Simple, Easy Tip To Increase Your Profits
Forex trading is all about getting the odds in your favor to reduce rsik and increase reward.
The simple tip below is ignored by most traders - yet if you include it in your trading plan, will see your risk decrease and profits increase and that?s what all traders want!
Most novice traders don?t use this [...] -
Successfully Trading The Forex
Perhaps the greatest challenge to mankind is the mastery of self. Doing what one needs to do rather than what one merely wants to do sometimes seems impossible. An honest introspective analysis will often reveal that we are indeed the greatest obstacle to the desired achievement. Our own unproductive habits and lack discipline cause us [...]
-
Truthful Answers About Online Forex Trading
One of the largest money markets in the world today is the Forex market. Traders from around the globe meet both in person and online to negotiate the value of different currencies for other currencies in goal of making big money. But what is Online Forex Trading? Are there strategies that I can use to [...]
-
Forex: More Trading Terminology Explained
Knowing and understanding basic trading terms can help to build the confidence of a trader. This confidence is exuded not only in trading activities but also in financial discussions with other traders. Comprehending the basic terminology also aids the learning process itself, since knowledge is cumulative, building on previous concepts mastered. Try adding these essential [...]
-
Forex Trading Strategy: The Ultimate Momentum Indicator For Huge Profits
Many traders in their forex trading strategy simply pick levels and buy or sell into them and hope they hold. This simply sees them lose, as they are hoping levels will hold and NOT acting on confirmation of price momentum to put the odds in their favor.
Here we are going to look at the ultimate [...] -
What You Didn’t Know About The Psychology Of Forex Market Trading ? And How It Might Bankrupt You
When it comes to trading on the Forex market, winning is a matter of the mind rather than mind over matter. Any trader who?s been in the game for any length of time will tell you that psychology has a lot to do with both your own performance on the trading floor and with the [...]
-
Forex Education: The Best Way To Become A Profitable Trader
If you want to make money at FOREX trading you need FOREX education.
Most traders think they can buy an e-book from a vendor and make money, but the fact is there is better FOREX education you can get and a lot of it for free!
Lets take a look at the best FOREX education.
First things [...] -
Tell Me About Forex Scalping
Trading on the Foreign Exchange market, or Forex, has become increasingly popular due in no small part to its sheer size and volume of trading. There was a time when only the large investment banks and other ?institutional? vehicles of finance could play in the currencies market but now it is possible for just about [...]
-
Successful Foreign Currency Trading Using Multiple Barriers
Learning how to identify levels where multiple barriers are can be very profitable for traders. Various types of cost barriers are in the Currency trading market. It is common for currency pairs to reverse direction at these barriers. By learning how to combine them, people who trade may develop a plan of trading with higher [...]
-
Swing Trading: A Simple 4 Point Method For Big Profits
Swing trading within the primary trend can be highly profitable and offer low risk.
Here we are going to look at a simple 4 point system for swing trading that any forex trader can use novice or pro.
Its simple effective and can be highly profitable.
You can look and test this method on any free chart [...]