In General, we know that many forex traders who have experienced failures. In fact, there are an estimated 96 percent of forex traders suffered losses and eventually ceased trading. The
following are some of the common mistakes done by the traders (mostly
done by traders) who cause to lose money in a fairly short period of
time.
1. Low initial capital
The
background and motivation of the most forex traders are mainly traders,
are people looking for ways to get out of debt, or people – people
looking for ways to earn money much with how easy and fast. It
is a very common thing in marketing strategies in the field of forex
and is also one of the driving in the conduct of transactions in large
measure the expected large gains can provide a large amount of it is
with initial capital is relatively small. But those steps is a surefire recipe for failure and is the best way to spend all of your capital.
The basic principle is you have to have money to make money. However
by doing a transaction with a relatively small capital and outsized
risk, you will only find the emotional attitude in every market movement
so compelled to enter and exit a position at the worst moments for
trading.
Solution:
For beginners in forex trading you should be trading with a relative small capital. $
1,000 is the amount that may be considered sufficient if you want to
Transact mini lot or smaller in order to avoid the over leveraged and
also because with enough capital, you will have more opportunities to
develop your trading system. Click here for more information on this type of account is suitable for you.
2. Failure to manage risk
Risk management is the key to survival. You could have a trader who is very skilled but your skill is not maximized in the absence of good risk management. The
core of the trading is not the way to make 1,000 to 10,000 or 100,000,
but rather how to keep the value of 1000 does not become 0. You
may only Transact unfavorable (BEP) but try as much as possible not to
make transactions detrimental especially by holding losses could
potentially deplete the margin you have.
Solution:
Use of capital/margin wisely based on conditions and trading plan that is healthy and fit with the balance you have. Specify
the profit target is reasonable and bersegeralah out the position at a
time when market conditions are in a situation which is not profitable.
3. Greedy
Many traders think it necessary to squeeze every pip movement until last. And also think there will always be money that can be obtained in the forex market every day. These two things are quite reasonable and often felt when doing transaction. In
fact, it is precisely this can make you lose a lucrative position
should be bad at a time when you're waiting for the movement of pips
last that doesn't match your expectations.
Solution:
Don't
be greedy and snap a reasonable profit, be a part of the potential
benefits you can get from the choose to retain and even loss of profit
which should be in the can. Forex Market move every day, then do not need to wait to get every last one of the pips trade only. There are many opportunities that arise in the market. Use them wisely and relakan stone unturned.
4. Whataya want from me
Sometimes you may find the conditions under which you are experiencing remorse towards the results of transactions you make. This
generally happens when you open a position that doesn't immediately get
a profit, and then you start saying to yourself that you chose the
wrong direction then you decided to close positions or closing your
transaction. The conditions of these
illustrations is indescribable miracle in a transaction decision not
indecision, where in dasarkan on deep analysis and such behavior will
only lead to terkikisnya margin you continuously.
Solution:
Determine
the position to be taken on the basis of analysis of both technical and
fundamental then estimate the target and also disallowed loss of his
then konsistenlah with the results of the decision. Need
was remembered that market movement will essentially always move and
you are not likely to follow every movement of the market, then the
maximum limits for tentukanlah mentoreransi loss in a one time
transaction and also the target profit before you do the open position.
5. try to determine the top or bottom
Many traders try to choose open positions at the moment of the turning point in the price movements in the forex market. They
will do an open position in an area considered the turning point of a
movement and when that point is found not to be a turning point, they
will continue to add to the open position and convince myself that it is
the best time to fight the ongoing trend. If you
are one of the traders in this way, in the end you will end up with
excess exposure or even further from what you already have planned.
Solution:
Follow
the trend that is formed or if you think that trend will change
direction and want to do open positions against the trend, it would be
wise to do it if you wait the change trend of unconfirmed beforehand.
6. Don't Budge
Some deals may end up in failure. This is the nature of human beings who want to always be true, although sometimes it is not always true. As
a trader, You should occasionally to has never been wrong and legowo
accept defeat, not holding fast to the idea that you think is right, and
ends with the end of your trading account.
Solution:
Indeed
this is a difficult thing to do, but sometimes you have to be able to
admit that you made a mistake and stop for a moment in order to correct
the mistake as well as breaks for a moment after the wrong decision in
order to prepare and neutralize the factors of emotions within you. Whatever the reason it's either wrong or decision-making is not appropriate as you have planned. The best thing to do is to admit a mistake and close a position and then move on to the next opportunity.
Source: Mysmartfx
