Over 90% of forex traders lose most or all of their money. Have you ever wondered why that is? The reason is that most traders make basic and stupid mistakes that cost them money every day and give 10% of successful traders reasons to laugh all the way to the bank.
Here are 3 Forex Trading mistakes you must avoid
Currencies trade in unknown – Although it is possible to work in almost every currency pair, and you can make money with all of them, there is no reason to trade in the currencies of countries you do not know anything. Some of the major issues that affect the value of the currency of the policy is micro-economic, local and foreign news’s country. It’s a mistake to trade in Forex if you do not know anything about the currency and its country.
Making a lot of transactions – Bad trader is too active in the market, because he lets emotions make decisions for him. Such traders sell too early, when they see a profit, and they sell too late, when they lose. In addition, each transaction has a commission for a broker, so that is what is eating your profits. You need to react on the changes of the market and use stop losses. Otherwise your equity margin will go down and you lose everything you have.
Trading Blind or Gambling in forex – Many traders who lose in forex are trading blind. They never pay attention to factors that influence the forex market. They never pay attention to economic and political news. In other words they simply gamble hoping that their good luck will save them. But good luck ends some day. In forex it means inevitable losses. Besides, if you are trading blind you do not know where to stop in order to save at least some money. You stay in the market until you lose everything you have.
Many market participants base their decisions on outdated tips, articles, and a vague understanding of financial conditions. You need some sort of trade system. We recommend using some Forex trading software to support the decisions and help you avoid stupid mistakes. There are some excellent and affordable software that people use successfully.
Forex Avoid these 3 mistakes and you should make more money on foreign exchange market. Do not expect fast money in forex. This market seems exciting and even magic. But in several days you will understand that forex can be cruel to people.
You will have to pay with your money for every mistake you did in forex. You will have to understand it! The Forex market is not a casino and this is a bad place to gamble.
It is obligatory to read unbiased reviews before purchasing forex software.