Common mistakes in trading

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

  1. Brads

    Brads Active Trader

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    Many common mistakes, are there which Forex Traders do lately, you need to understand and identify that, and also see that you don't repeat it.
     
  2. Aadolf

    Aadolf Trader

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    Some traders make the mistake of seeking the Holy Grail and forgetting discipline. There is no secret trading formula, other than solid risk management. So stop looking for it. Learning the basics is easy. Most traders fail due to a lack of discipline, not a lack of knowledge.
     
  3. freezfx

    freezfx Trader

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    That is why many say, spend what you can afford to loose or in other words; invest what you can afford to loose. We can apply same principles in forex, trading from little start ups especially for newbies.
     
  4. Aadolf

    Aadolf Trader

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    Some traders make the mistake of attempting to predict price moves. They attempt to forecast the top or bottom of a price move. They expect to be right every time. They hop on board according to their signal once a trend has begun, and he lets his profits run. You can't do this and expect to be successful.
     
  5. freezfx

    freezfx Trader

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    Even though this seems daunting sometimes, there are indicators for such purpose that can make the job very easy. Make best/wise use of them can really go a long way.
     
  6. Aadolf

    Aadolf Trader

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    If a person can’t make money with what’s available now, he won’t make money by inventing a new indicator. There are lots of creative ways to use technical work that have nothing to do with developing new indicators.
     
  7. freezfx

    freezfx Trader

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    That's just the simple truth, if you are hoping for something in the future when you can't make use of the one you have now, how then can you work with that when it would just be an upgrade.
     
  8. Aadolf

    Aadolf Trader

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    I do not condemn the use of indicators. We know that indicator can act as an alert to study price action a little more closely. If momentum is waning, it may be a signal to watch for a break of support. Or, if there is a large positive divergence building, it may serve as an alert to watch for a resistance breakout. Hence, when the desirable is not available, the available becomes the desirable.
     
  9. freezfx

    freezfx Trader

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    I concur, we have to make do with what we have. But we should not be limited with our tools in the market, we should widen our scope, spread our wings.
     
  10. freezfx

    freezfx Trader

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    I concur, we have to make do with what we have. But we should not be limited with our tools in the market, we should widen our scope, spread our wings.
     
  11. Chelsea

    Chelsea Newbie

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    For starters, they tend to withdraw their investments as soon as the stock price goes down. It is better to withdraw the share after it goes down and goes back up even just for a little bit.
     
  12. Twin butterfly

    Twin butterfly Active Trader

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    So many mistakes are there for common list, one is feelings of our, emotions. If we can control our self then we can manage our work easily. Traders always learn the strategy for trading, but dont learn controlling our self while trading.
     
  13. Aadolf

    Aadolf Trader

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    Demo trading is very much encouraged especially for newbies since it helps them develop trading confidence, monitor market conditions or familiarize themselves with the software before going live. However, some make the mistake thinking that their success in demo trade determines how successful they would be in a live account. Unless there is no real money involved, most new traders will never get how volatile a market forex is and one can lose money quickly than they expect.
     
  14. freezfx

    freezfx Trader

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    I think that is bit too rational, even when we leave the funds there they won't be used by the broker. Except some brokers use funds not invested.
     
  15. freezfx

    freezfx Trader

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    That is not really easy to achieve, especially when we loose good money. We can't help but get angry and frustrated at that point, the best we can do see how calm we can be.
     
  16. ema watts

    ema watts Trader

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    There are some common mistakes that give all the traders trouble at some point and keep them away from making profits in forex markets. Some of them are:

    · Over trading

    · Lack of practice on demo account

    · Emotional trading

    · Lack of trading strategy

    · Not applying risk management properly

    · Lack of discipline
     
  17. archie

    archie Newbie

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    I agree that demo accounts are like an illusion, but without it the where will the person get an experience of trading before going for live trading instantaneously. As everyone do not have that much courage to keep their money at stake by just understanding theoretically, one need to experience the practical world also before actually putting real money at stake. So, to overcome the false sense of comfort one needs to be mentally prepared.
     
  18. Darren Glenister

    Darren Glenister Newbie

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    There are several mistakes a trader make during initial learning days and earns a lot of worthy experience from it. These mistakes are:

    1. Letting the losses to increase: Traders usually ignore the mouting losses and expect them to turn into green with time which is highly impossible sometimes because of market trend & swap costs.

    2. Failing to enter stop losses: If the trader is not entering the stop losses in his trades, there is a high probability that he might encounter huge loss over a period of time.

    3. Not having a trading plan: If the trader is not having any trading plan, it means that he has already planned to lose.

    4. Using excessive leverage: Excessive leverage means taking huge loans for better trading results. Thus, you end up losing the most out of it.
     
  19. jameswilliam

    jameswilliam Trader

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    The most common and the biggest mistake traders make is by entering the market without having a proper plan for trading. Especially this is very common with noob’s. Lack of discipline, patience, basic knowledge about the market and making unrealistic assumptions about the price movements in future are the common mistakes made by the traders which affect their trading.
     
  20. Martin Gaptil

    Martin Gaptil Trader

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    Yes by and large traders think , only high leverage can bring profit very rapidly and they fall a great loss by taking high leverage when they practically use it without any risk management policy , actually leverage always contains risk , that’s why we have to know the proper risk management policy before trading with any leverage.
     

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