Common mistakes in trading

[Brads]

The most common mistakes that many traders follow is that they enter into Forex Trading, unprepared, which eventually leads them towards loss.

 

[Usman Khan]

i keep diary to see at my mistakes and not make same mistakes again

 

[Andrew101]

I agree ... it is not supposed to be quick money. You are supposed to study it real hard before plunging in.

You are very correct. Forex is not something you become a master of in few days or months. It requires hard work, patience, and lots of discipline. So if a newbie is starting Forex with the hope of making quick money, he should think twice about it.

 

[Andrew101]

The most common mistakes that many traders follow is that they enter into Forex Trading, unprepared, which eventually leads them towards loss.

I agree completely. Not having the required trading strategies and lacking the right knowledge makes a new trader unprepared for the exerting task of trading Forex.

 

[Robian]

I agree completely. Not having the required trading strategies and lacking the right knowledge makes a new trader unprepared for the exerting task of trading Forex.

And...how many trading strategies are required?

 

[Lukas Schmidt]

i keep diary to see at my mistakes and not make same mistakes again

Me too! Helps a lot.

 

[Brads]

Keeping a diary would be quite a nice idea. It might help you to remember your mistakes, given in that you have lots of mistakes.

 

[Andrew101]

And...how many trading strategies are required?

Not all strategies are equal in the markets. Some perform better than others, Hence the need for a trader to find out which strategies are more suitable for him to trade.

 

[Andrew101]

It would be a trader's biggest mistake to be desperate and try to defeat the market. Trading with this kind of mindset will cause more losses than gains. So before venturing into this business call forex, make sure you understand and accept the fact that the market can be random, and it is to your benefit to be in a harmony with it.

 

[Brads]

There are lots of mistakes that a trader does in Forex Trading, you need to understand that you are tend to make mistakes, and you need to identify them and then try not to repeat them.

 

[Winjak]

There are lots of mistakes that a trader does in Forex Trading, you need to understand that you are tend to make mistakes, and you need to identify them and then try not to repeat them.

You've already said about keeping a diary in order to keep an eye on mistakes.
Really, having a journal or something like this is an useful thing.

 

[Andrew101]

Some traders make the mistake of not considering the level of volatility of the market forgetting that the risk can be significant when the market is highly volatile.

 

[Robian]

Not all strategies are equal in the markets. Some perform better than others, Hence the need for a trader to find out which strategies are more suitable for him to trade.

I see, I have one strategy for trading currencies for now.
I wonder what if I created 2nd and 3rd strategy? would it be normal?
Do you know someone who practices trading multiple strategies or maybe you do it?

 

[hayseed]

I wonder what if I created 2nd and 3rd strategy? would it be normal?

hey robian..... yes it would be quite normal..... most of us do..... someone that trades the trend using moving averages will often find himself with no trend to trade..... trends vanish or stall.... during these ranging times , using oscillator type systems can relieve some of stress from impatience...

the fear is that we might become trade addicted.... forcing ourselves to find enough systems that would allow us to trade no matter what the market is doing..... there is plenty to be said for using a single strategy but a lot of patience......
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i'll be uploading some youtube videos and posting the code on this forum that will allow you trade or at least view, dozens of systems at a time.... the idea is to put things in a manner that even someone not fully code confident can create or customize these without fear.... pulling back the curtains so to speak..... below is the example that will be used.....h

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[Brads]

There are lots of mistakes that are involved in the Forex Trading, but the most common is to take the Forex Trading as a Gamble and trade blindly.

 

[inggo]

mistakes?

greed
over trading
lack of knowledge
gambling habits
discipline
honestly i think its more of the little things that people neglect that costs them big time.

 

[GIC Markets]

Most of traders fail to make profit from forex due to lack of experience in forex. They don't give time in forex business and they fail to make money from forex. They have greed which destroy them from making money in forex.

 

[freezfx]

There are several things to avoid in trading, however I only choose a few that I think is very important in trading. There is a common misconception that you can learn from a demo account, however, the emotions are different in trading live and demo including the re-quotes that you experience in live trading.

Another misconception is that leverage does not cause you to lose your account; this has even spread as high as government regulatory bodies in the US where there is now a cap on leverage. Leverage is not bad per se; however, without using a proper risk management is very harmful in your trading. As long as you commit to your risk management the amount of leverage will never cause you to lose more than you should.

The second especially is mostly dangerous to neglect, because the more leverage you use the more likely you lose big when things go wrong.

 

[Brads]

Yeah there are lots of mistakes that are done by the Forex Traders, but the worse would be repeating them again.

 

[Andrew101]

mistakes?

greed
over trading
lack of knowledge
gambling habits
discipline
honestly i think its more of the little things that people neglect that costs them big time.

These traits you have mentioned can be summed up in one word; Emotion. Once a trader is able to control his emotions, then he can succeed.