6 Fatal Trader Mistakes

There is a currency circulation in the forex market of US5 trillion every day, this makes Forex the largest market in the world that also promises long-term benefits. Many forex traders who managed to get large profits here, but there are also those who have failed from forex trading.

How can anyone experience a failure in forex trading? Why Forex is difficult? This is a question that often haunts many traders to date, even though a turnover of that size should be able to make many traders get the maximum profit.

Forex trading is not a tool that can make many people suddenly rich. Forex trading really needs a strong foundation in order to succeed, both in terms of the ability to analyze fundamental and technical, there are also psychological factors that must always be stable trading

1. Underestimate the Basic Theory

The biggest mistake made by novice traders when first starting trading is to tend to underestimate the theory. Most of them start learning on demo accounts and when they feel they can, they are tempted to ignore learning and do it alone in forex trading.

Many sources can be used as educational material. Starting from private classes, attend workshops or class training online. Like the workshop held by GICTrade some time ago, which discussed Elliot Wave. This activity is intended to make your mental and trading skills always grow over time.

Also Raed : Trading Tips on Sideways Conditions

2. Trapped Emotion Trading

A trading plan is the first thing that is prepared before entering the market. This is very useful in helping your trading become more disciplined. Can prevent you from making your own rules when trading. You must remember that in trading there are basic rules that must be followed, to keep equity stable, the consistency of accumulative transactions meets expectations.

3. Trading Without Planning

Planning here is not just entry and exit, just buy and sell. The biggest problem is after entry buy or sell what do you want? Taking what profit or limiting the loss at what number? Until the exit plan. This is very important, because there are many unexpected things in forex trading.

Also Read : The Most Powerful and Accurate Binary Trading Indicator

4. Not Understanding Margin and Leverage

Leverage and margin are facilities that are provided, to be able to maximize your trading using the capital you have. The mistake that beginner traders usually make is not really understanding the meaning and use of leverage and margins. Margin and leverage are like double-edged blades that can increase your profits or increase your losses.

5. Trading But Don't Know What to Do

Traders have learned to know the basics of trading, then traders do not enter based on personal analysis. Traders using recommendations must buy or sell in one pair without understanding, why should they buy or sell. In this condition, the trader will experience a deadlock and confusion, when the market goes not according to expectations so you have no alternative attitude what will be done.

6. Trading Too Many Pairs

Have you ever heard of multi pair hedging? That is not something that is easy to do, moreover you have just plunged into the world of forex trading and do not have much time to do in-depth analysis of forex.
We recommend that you take a position in just one pair, so that you can focus, when it's clear you are thinking of moving to another pair after knowing the pair's condition is certain.