Exness Broker

Forex Traders Common 10 Mistakes - Defend Yourself From The Unexpected Losing Reasons

Exness Broker - Open An Account

Forex Traders Common 10 Mistakes - Defend Yourself From The Unexpected Losing Reasons



The Foreign Exchange Market is the most accessible market in the world. That's why its daily turnover is
6.5 trillion dollars.

Deep down you know it’s true!

Why do people trade?

Because they can start trading with a computer or phone, an internet connection and with a few hundreds of dollars. But it is not easy to extract profit from the forex market. Some various websites and blogs admit that around 70% to 80% of people or in some cases even 90% people lose trades and quit forex because of avoiding the "Forex Secrets" & "Know Yourself" formula at online trading. 


What do you think that forex is hard to trade? No, it is not at all. Because traders are making mistakes that's why the ratio is still high. So, in this article, we will talk about the most 10 common mistakes that traders must avoid.

Why are we waiting? Let's begin the show...




                                                         ____________________


Mistake 1: Stop TRADE WHILE LOSING Evermore

Forex Mistakes - Do not Trade - DailyForexTrading
You can monitor your profits by two methods. The first one is the win percentage and the second is the risk-reward ratio.

The win percentage is a simple strategy. If you place 100 trades and win 60 trades into them, then absolutely the percentage will be 60%. A profitable trader should have his win percentage above 50%. Then surely it will be profitable for him.

The second most profitable way is definitely the risk-reward ratio. It means how much you are profiting instead of losing. If you are winning 75$ and losing 50$, the ratio goes to 75$/50$=1.25. And the ideal ratio is above 1. So, I think it will be nice if you are making profitable trades while using these methods.

Mistake 2: Do not Use "STOP-LOSS" When Assigning TRADE

Forex Mistakes - Do not use Stop Loss- DailyForexTrading


Stop-loss is a great way to protect your balance from extreme volatile markets. If you are making trades and not setting up stop losses, it might be huge unwanted worst. If you set your stop loss in a certain position, then you can control it. It will automatically stop the trade if it reaches the limit of losses.

There are many traders who do not use it (sometimes professional traders do not use this method). But we always recommend for fresher to use this formula and let your balance safe.

 

Mistake 3: RISKING HUGE MONEY FOR A SINGLE TRADE

Forex Mistakes-Risk DailyForexTrading


Most traders are risking huge amounts to get a single profitable trade. But it's not the rule. If you are risking so high for a single, then if you lose the game is completely over. And if you do not know to gamble, then I must say that you are on that list.

Because you can not predict the trade into a 1:1 situation. You have to trade with the trend and risking money that you can afford to lose. As my personal recommendation, you should set a win percentage. You can win trades with an ideal win percentage. Or you can follow someone's VIP Signals to get instant Buy & Sell direction.

 

Mistake 4: Choosing the Wrong BROKER

Forex Mistakes-Choosing Forex Broker-DailyForexTrading
Choosing the wrong broker can bring problems. Depositing your hard-earned money into the wrong broker can make trouble. 
That's why you must need to check your broker about the deposit and withdrawal times, spread average and commissions, trading execution methods - market or instant execution and leverage offered and whether it is floating or fixed.

In addition, you need to check whether your broker is a Dealing Desk (DD) or ECN / STP brokers and acting as their liquidity provider. Sometimes they provide the handsome bonuses
 of forex no deposit bonus or a deposit bonus that will be great for an extra trading volume advantage.

 

Mistake 5: Poor TRADING PLAN

Forex Mistake-PoorTrading Plan-DailyForexTrading


A trading plan is a proper out making strategy for your trading. In your trading plan, you can make a strategy, write down your profit and loss, calculate your risk-reward ratio, track your monthly goals, and many more.

Your Trading plan helps you to maintain your track goals. So that you can count how you profit or lose, in a certain time. Without having it, you can't get the right information. And if your graphs are down, you can not predict that you will get profit. Then you'll not have the right strategy to set a plan goal.

 

Mistake 6: EXPECTATION BEYOND IMAGINATION

Forex Mistake-Over Expectation-DailyForexTrading
Starting trading in forex will not make you a lot of money at an early age. You are expecting to be rich while trading, but it will only happen when you really make your position tight.

Expectations are good, but unrealistic expectations can be a reason while losing. That's why most traders are giving up forex trading for the first time. We have to keep in mind that beyond expectation we can't get our satisfaction.

 

Mistake 7: Do Not Focus MULTIPLE TIMEFRAMES

Forex Mistake - Do not use Multi Timeframes - DailyForexTrading 1
Most novice traders make one common mistake that they only follow one single time frame. The time frame indeed shows the chart with a different period of market reactions. And as a trader, it is truly necessary to read out all the information that is truly needed.

Multiple timeframes can be a deadly milestone in profitable trading. Expert traders are using lots of timeframes to identify the exact market price for a certain time. And the use of technical indicators is amazing with multiple timeframes.

There are three different timeframes lines you can use.

  • D1, H4, H1
  • M30, M5, M1
  • H4, M30, M5

 

Mistake 8: Do Not Follow THE TREND


Trading with the trend is a common way that most traders are using. It is not only popular but also it's the most profitable way. With trend trading, it is the most possible way to get maximum profit within a certain time.

You can get benefited from the lower trades, which means more time and lower commissions. But, if you want to score, then trend trading has no alternatives.

 

Mistake 9: INTENDING ON MONEY

Forex trading is all about high risks. But having a lot of tension of getting lost, you can't go longer. Your money will be at risk until you are trading with patience. Don't you read, "patience is the key to success?"

Forex Mistake - Do not patience - dailyforextrading


If you look around, you can see successful people don't worry about money-making. They always hunt for the right plan to produce more and more productivity. If you are really good at trading, then the profit will come to you. You don't need to get it.

 

Mistake 10: Book Is King Of Ideology But Average Show Zero Interest

Forex Mistake - Less interest to read book - DailyForexTrading7
In forex trading, people are talking about money, analysis, broker, trading platform, forex market, and so on. But how many people really want to suggest reading books?

In one word, "rarely one or two!"

If you do not read, you can't gain more knowledge. Successful people like Warren Buffet and Jeff Bezos have a huge habit of reading books. A report says that "Bill Gates read more than 50 books in a year." That means he probably read one in a week and also he tries to utilize the things that he absorbs from the book.

So, according to Investopedia, here is a list of best forex books--

  1. Currency Trading for Dummies, by Brian Dolan
  2. Day Trading and Swing Trading the Currency Market, by Kathy Lien
  3. Japanese Candlestick Charting Techniques, by Steve Nison
  4. How to Make a Living Trading Foreign Exchange, by Courtney D. Smith
  5. Forex Trading: The Basics Explained in Simple Terms, by Jim Brown

Readout those collections and practice in real life. That much we can suggest to you.

The Outcome 

We all know that success without mistakes is unbelievable.  But if you keep forcing out to avoid these blunders then practice, practice, and practice and you shall overcome one day.

For now, you can try to fix these things.

Best of luck!

  • Share:

HOW CAN WE HELP YOU?

contact@dailyforextrading.net