Do you think that the world’s famous traders like George Soros, Stanley Druckenmiller, Andy Krieger, and Bruce Kovner have never loss made a loss?
Of course they have. Even Mr. Soro, who still successfully runs his Forex career in the various markets after more than thirty years in this field, made a significant loss in 2017.
So, why did they lose? The answer is easy — they made mistakes. And Forex is a game of making mistakes and taking chances. If the buyer makes a wrong move, the seller embraces its opportunity. And if the seller steps on the bad tiles, the buyer gets the profit.
To be successful, you have to make fewer mistakes and take more chances. But the statistics show that more than 90% of traders make more wrong decisions and then start taking untenable chances. But the question is, what are those mistakes? Today, we are going to discuss common mistakes.
Having no trading plan
Maximum traders have no trading plan at all. They sit before their devices, enter the market, and trade as their wish. It is not the way to trade at all. Forex trading requires a lot of studies, an extensive analysis, and a dedicated strategy or planning framework. Executing random trades might help you to win some trades, but remember that winning in this way is accidental. And that type of accident does not happen regularly.
Having no control over emotions:
Unfortunately, most traders have no control over their emotions. While trading, they become emotional. Their feelings are unrestrained, and such emotion leads them to make mistakes. So control your emotion. It is essential not only for Forex, but also for your personal life too.
Making big trades
You may feel pretty for maximum traders because they want to earn bigger by trading big after making a small amount of profit. But unfortunately, they experience loss. Look at this site and learn more about advanced risk management techniques. It will motivate you to trade with low risk most of the time.
Reluctance to maintain the plan
Interestingly, even after developing a plan, most forex persons cannot stick to it. They plan when the market remains close, but as soon as the market gets opened, they forget about it and make wrong decisions. And this drives them to make an error.
As you are interested in Forex, you want to earn money. But most of FX experts think that this is a bad move. Your aim should be based on logical decisions. Taking the right decision is more important than earning money. Aiming to make a profit may lead you to make the wrong move.
Unwilling to take small profit
You must know that “Drops of water make an ocean.” If you want an ocean of profit, you need to first capture the droplets of a small profit. Stop looking for the big gains which can make you rich. Instead, aim for a smaller one. Making a small profit will help your reachto peak of your success.
Traders who boast of their recent success are more likely to make a massive failure within the next couple of trades. Because having too much ego never brings anything good; instead, it will lead you to make mistakes.
Dependence on personal prediction
You will have many technical indicators or Analysis tools around the market. So, make predictions with the help of the charts and reports given by these tools. But if you only listen to what your heart says and depend on your forecast that may ruin you drastically. Always remember Forex is not a place of emotion.
Not using stop-loss
Some traders do not like to use stop-loss. As a result, sometimes the price falls to a level that’s beyond their notice, and they experience a loss. Stop-loss is your savior and friend, don’t avoid him.
If you are new to Forex, be careful about the above mistakes. Making the above mistakes will make it almost impossible to be successful. Instead, they could well ruin your career.