New to FOREX TRADING ? - Avoid these 6 mistakes

While searching for information about mistakes made by new forex traders, I've come up with these are the most common ones:

Not having enough funds

Yes, it hurts, but it is the most common issue. You got to have a reasonable trading capital. If your account is too small, you might find it difficult to pull the trigger on a trade, because you are too scared of losing what little capital you have. It's essential to have enough capital in the account so you have the ability to survive a chain of losses, because they can and do happen. You got to accept that losing trades happen to each and everyone, and you should not be in a situation where some losses can wipe out the total  trading capital you do have.

Very High expectations

Another common mistake of new traders is having unrealistic expectations of what is going to happen. Most of us ....... (Please click Read more) ........ begin thinking of sitting on a sofa, opening our laptop, having a few keys pressed and some clicking will make a thousand dollars within a day. Just one or two trades will show you how unlikely that is.

You got to think this as a real business. If you invest 1,000 - 2,000 dollars in a bakery (or any other business) Will you be profiting 500 dollars per day? It takes something more than that, plus hard, consistent work and dedication. Trading forex is not much different.

It will take time to grow your balance up, enabling you to trade higher amounts, and make higher profits. With patience along with some common sense, you will be able to reach where your profits truly matter.

Not treating forex trading as a real business.

Forex trading is a business. So treat it like one. Most doctors didn’t just , but most Forex traders appears to be think they will be able to “pick it up” along the way. You are going to  compete against some of the forex trading masters  in the world. Of cause you will be able to come out ahead, but you need to know what you are doing, before you try doing it!

Be educated, follow demo accounts for a reasonable period, they can get you the experience needed to compete with the larger companies around the world. Of cause You have some advantages that they don’t, like appear and disappear of the market with ease for example. You can learn how to use your experience to make money steadily, but it isn't going to happen overnight.

Over-leveraging

This is quite similar to having an underfunded account. But there are still a number of traders that insist on using all of the leverage they can. The lure of large gains is simply too much for them to ignore, but they don’t look at the other side of the coin, to think about the losses are also on the cards.

Being overconfident

having confidence of what you are doing is good, but one mustn't go too far. Your last trade made a large amount doesn't mean you are going to earn profits on each and every trade you make. Some traders will look for a chain of profits as a signal to start trading with large positions.

This can be very dangerous. Single 'large' trade that goes the other way can level several of your normal profits. A loss can come at any time, and successful traders will actually trades like it is likely.

Trading without a PLAN ?

A successful forex trader is backed up by a trading plan. You cannot just trade some and expect to make good decisions. A trading system as part of your plan can consist of chains of trades towards becoming profitable. You need to learn what and when to do in different market conditions. A good trading plan will get you where you want.