Common mistakes in trading

Discussion in 'General Forex Discussion' started by mumuy, Dec 3, 2013.

  1. mumuy

    mumuy Active Trader

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    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.
     
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  2. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Nice post mumuy and I agree with you on the points you mentioned. Demo trading is a terrible thing to base your success as a trade on and leverage is highly misunderstood and therefore not beneficial to most traders.
     
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  3. mumuy

    mumuy Active Trader

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    Thanks rambo35, demo trading sometimes create a bad habit of letting you take more risk causing you to lose more.
     
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  4. fxapex

    fxapex Active Trader

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    you have made a very valid point, but still demo account gives you lot of practice on trading...
     
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  5. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    No, it really does not as you do not trade in a demo account. Not one single trade takes place so how on earth are you learning to trade in a demo account? It is nothing more than an illusion for new traders to create a false sense of comfort before they place a real deposit.
     
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  6. bablogfx

    bablogfx Confirmed HotForex Representative

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    I would disagree in a passage when leverage mentioned. It plays significiant role in forex trading, especially for newbies, who just gamble away their deposits quick and easy. Another widespread mistake in trader is choosing wrong broker which just embarasses their trading.
     
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  7. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Nobody mentioned that it does not play a role, but leverage is only a tool and therefore not bad. It actually is a great tool if used properly. The stupidity of newbies is not the fault of leverage.
     
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  8. rrayne20009

    rrayne20009 Trader

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    That is why chosing the right broker is a challenge. Deciding on the right forex broker is very important for it could affect your trading experience considerably.
     
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  9. David Train

    David Train Trader

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    One of the main mistakes is not putting Stop Loss.
     
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  10. mumuy

    mumuy Active Trader

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    I agree with that, not putting a stop loss is really a big mistake.
     
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  11. Rambo35

    Rambo35 Confirmed PaxForex Representative

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    Most don't know how to use a stop loss and think it is used to close a trade for a loss.
     
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  12. nalu

    nalu Confirmed ProfiForex Representative

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    Any trader using leverage should have enough funds because leverage position can lose money quickly just as it can also make money instead being at risk of being at risk of automatically his trading capital. And also the usage of leverage requires proper understanding of risk management and the use of well defined stop loss order.
     
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  13. karunia

    karunia Banned

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    We must making pole to know the real common of mistake..
    So, we can be aware about that and could minimize those mistake.
    We have already know that knowing our mistake is really difficult and make us always do same mistake..
     
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  14. I have to agree with you on those. There are people who use the demo accounts and then think when they go back to live trading that it will be the same. It won't and they lose that emotion that they had while they were losing their own money. That's why I always tell people that you must be very careful because you don't want to lose more money. The point is to learn how to get your trading down and what strategy you're going to be using. So you shouldn't be put too much faith into the demo trading that you might do. And not getting the results that you will with the live trading is the biggest thing that you should also keep in mind. And if you're thinking about using a demo account, then I would suggest checking out the ones that concordbay.com/en has to offer. I have used them and I have to say that they are pretty much the best ones that I have used.
     
    Last edited: Oct 12, 2015
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  15. Trader_from_Hell

    Trader_from_Hell Newbie

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    It is useless to compare demo and real accounts, cause demo was initially created as a tool for newbies and advisers, it is not a surprise that the execution of the same operations on demo and real could differ due to market conditions. It's business, babe)
     
  16. TheFxTrader

    TheFxTrader Trader

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    I think another big mistake is to deposit money when you receive a margin call in order to support a losing trade in the hopes that the market will turn in your desired direction.
     
  17. Jenal Aripin

    Jenal Aripin Trader

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    I don't think it's a mistake. But when you got your trading account a margin call, you should take a break from trading for a moment, evaluate your trading history and learn deeper.
     
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  18. TheFxTrader

    TheFxTrader Trader

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    I heard about a lot of people who deposited more money into losing trades and lost everything. The market never turned into their favour. That's why I consider this a mistake. This is just my personal opinion, though.
     
  19. radex78

    radex78 Active Trader

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    Yes not always like it, forex market sometime move not like as our favour, but I think we can recognized our mistake to determine our entry point, every tick price movement worth profit and loss possibility, sometime we repeated same mistake like as we rush in decision making while the trend already on saturation area.
     
  20. Lawrence

    Lawrence Active Trader

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    If we think that we would be able to Monitor each and every movements in the Forex markets then it will not become possible for us. We have to just think of how well we can trade and earn income thru our trading :)
     

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