No matter how long working experience in the forex markets, there are always loopholes must be treated, whether those gaps caused by the EGM market changes or through psychological condition. The following are major risks in the currency trading market. If you start to see any of those errors in your trades. You must be faced, go back a step back and traded more than that. , And focus all your energy on processed first.
Winning trades shut down and leave the losers
The most common mistakes is to stick to the trading loss-making transactions for a long time and reap their profits Winning trades too early. Reduce the loss of the key is to follow the administration's plan is a good risk comprising its stop losses and stick with it. Whenever you are able to accept small losses as part of daily trading. Whenever you are able to focus on the discovery of a successful trading strategies.
Trading without a plan
In many cases, the fact that only desire is our motivation for trading, only desire without having a plan to manage the risks and straightforward - just want trading - if you have a good plan in the sense good Forex strategy, you can do trading, but that were not you need to do first homework in the formation plan to enter the market specific points of entry as well as exit - stop loss and take profit points.
Trading without a stop loss
Trading without a stop loss is a good plan for bankruptcy. Before entering into any deal you should be determined in advance. Think of the losses before profits, think about how much can I lose in the deal if the market was contrary to my expectations, and how much of those losses represent my wallet percentage. Leaving an open position without stop loss point can be ventilated the whole account. In often unexpected things occur, for example, a natural disaster or terrorist incident lead to the country's currency cut exceptionally, in those could lose some including players adult market confidence in that currency, which aired account but determining losses point limit So. It is an inevitable element of safety for every professional trader in the currency market.
Move the stop-loss point
Move the stop-loss points to avoid the closure of the deal is negative is almost like not putting stop loss point. It reveals a lack of discipline and commitment in trading operations and opens the door to significant losses. Move only stop-loss points in the cases Winning trades to reap Alabah. Do not move and never stop losses in the losing trades points.
Frequent trading
It comes in two basic forms:
Much of deals done in one day
Open several deals at the same time
When abound of trading usually have open positions, which always expose continuously to market changes. The open several deals at the same time, like throwing a set of arrows at the same time, hoping that one of them hit the target. But this style eats what is available from the sidelines, which sometimes prompts Forex company to shut down some of those deals. Reduce the exposure of your transactions to changes of market factors by opening several deals at once or open a lot of transactions per day. In order to avoid these mistakes, focus on good opportunities and invested in a disciplined through a successful strategy. The large number of transactions is not always the best way to profit in Forex, but focus on the quality of deals is what leads to profit.
Also be careful in not duplicating the transaction or overlap with other deals a deal to buy the currency pair USD / CHF is almost the same deal to sell the currency pair EUR / USD or GBP / USD (dollar buying offset selling of currencies EU), while the sale of EUR / USD and buying EUR / JPY Safqatan are intertwined like you without knowing a deal USD / JPY