Online Forex Trading: 6 Common Errors That Will See You Lose

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If you are looking at online forex trading, in this article you will find some common errors that will see you lose.

Many of these are accepted ways to make a profit and you will see many writers give convincing stories that they will help you make money, but they won?t.

Make these errors and you will lose, so here they are:

1. You can day trade and make money

Yawn. How many times do you see day trading touted as a way to make money?

All the time.

Fact is it does not work and cannot work, as it?s based on logic that is simply not correct.

Any experienced trader knows that short term volatility is random, within daily and hourly time frames.

If you can?t judge where volatility will go in short time frames you can?t get an edge or the odds in your favour.

So, if volatility is random how you can get the odds in your favour and make money?

You can?t!

Don?t believe me? Then consider this:

There are millions of traders in the market each day trading trillions of dollars and the huge majority are not looking at daily ranges.

Try and find a day trader with a real time track record of profit ( let me know when you do) as most are selling systems and not dumb enough to trade themselves.

Good story, but a great way to lose your money ? period.

2. You can use moving averages as a timing indicator

Really? This is a real gem.

How can you time entry with a lagging indicator?

Think I will stick to momentum indicators.

3. Brokers can make you lose

This is a story put around mostly by day traders who want to justify why they get stopped out.

Brokers hunt stops!

No they don?t ? consider this:

The only participant with the potential to move a market and pick off stops by themselves is a central bank and even they don?t achieve this every time.

A broker trying to pick stops in a market that trades trillions of dollars a day is laughable.

Don?t fall for this story.

4. Currency trading is risky

A statement of the obvious!

To a degree this is of course true, but so to is life.

Crossing the road is risky, so do is driving a car, but there are two aspects to risk.

The market you are trading + your approach = Risk

You can make online forex trading as risky as you want, or you can control it by prudent money management and a sound trading method.

By: Sacha Tarkovsky

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