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| TOP 10 Mistake to do a Forex |
1. Have rich quick mentality
Novice traders often see Forex as a simple way to become rich in a short time, without really considering the risks and effort should be included to achieve those goals. A very large trade in proportion to the balance of your account in an effort to make big profits is unlikely to be successful in the long run because on many current market direction will be opposed to the prediksiAnda, which can cause severe losses.
2. Random decision making
A trader must know in what conditions they intend to open and close their positions before entering any market, based on the specific system yangmereka follow. Needed a clear trading plan to help traders focus on their system and eliminate the way of guessing randomly. Install the stop order lossjuga can reduce losses. Very important to remember that the market may not always searahdengan your trading direction.
3. Using Leverage is too high
One of the aspects of the Forex market that appeals to many traders is an opportunity to melakukanmargin trading, in other words, trade leverage. With this facility, trading with kecilakan initial deposit allows you to open a relatively large trading positions, so it is very important not to overdo it when choosing the size of the trading. Forex usually traded with a high degree of leverage, which means you need investment capital the equivalent of only 1% or less of the nominal amount of the actual investment. This produces a huge leverage and can result in significant advantages for you, but can also lead to significant losses for you. There is a possibility your losses will be on par with most or all of your initial investment. We have a risk management system designed to help prevent large losses, although these measures still requires a responsible approach to trading.
4. Do not use stop loss
Many beginning traders kept the position of loss (loss) for too long, because they think too long, or hoping the market would turn into in accordance with the direction of trading them. They also tend to get out of the position of profit (profit) is too quick to lock in profits directly, which eliminates the opportunity to gain a greater advantage. Although it's tempting to have this frame of mind, you have to have the patience to just trading on the position that you think are appropriate and follow up your trading with discipline in doing cut loss (shut down trading in a State of loss) quickly, or let the position open longer on profit when market movements in accordance with your expectations to generate maximum profits.
5. Affected the emotions
Stay calm and maintain the balance of mind is very important when you trade, in order to keep the focus on market movements. Very important to always remember that your actions will have an effect on your trading results. It is fairly easy to say but very hard to do especially when you are influenced by emotions and have to make a decision within a fraction of a second. Novice traders tend to trade with their emotions and then forget all the things they learned.
6. No discipline
Traders who have the discipline to stick to trade with a trading plan that is tested on a consistent basis will result in larger gains possibilities than those who trade inconsistently, kemungkinanprofitabilitas, and tidakmemiliki guessing trading plan is clear. Very important to plan your trade and trade according to plan, rather than randomly select entry dankeluar of the trade without the use of a particular trading system. Another important thing is to maintain the consistency of your trading system and follow up with a good analysis, so you'll have ideas that are better than trading experience and the mistakes you make.
7. Do not have fund management
The main difference between the newcomers and the experienced trader was their approach to financial management. Professional traders recommend for risking a certain percentage of capital and never changed the percentage. Risking a percentage of the amount of your capital on each trade is very important because it reduces the impact when a loss occurs repeatedly in succession. Traders often ignore this and increase the amount of trading them when they begin to experience losses.
8. Not knowing your market
A common mistake made by novice Forex traders is to start trading without enough knowledge about the currency pair they choose and how currencies are influenced by global events. Learn as much as possible about how different financial markets affect each other and how they relate to each other, i.e. stocks, bonds, commodities and Forex. This knowledge will allow you to make better trading decisions when information from a variety of economic data was released. It is also important to identify the type of applicable market that allows you to adjust the strategy Andadan thereby avoiding potential losses from your trading. The more information you have, the better your chances for a successful trading. Be aware that some market participants have different intentions than you have, for example, the hedger will sell to a market that is increasing because hedger often seek average prices with great deals to risk manage their portfolio. This is in contrast to individual traders who seek to maximize profit on every trade.
9. Does not monitor your position
Very important bagiAnda to monitor your own investments in Forex markets intensively. Investment monitoring will help you maintain control of your trading and help you to follow the movement of the market yangterjadi. Stay connected with the latest market developments is a good way to maintain and expand the level of knowledge and understanding of the Forex market. Be aware that the Forex market is a market with trade transactions 24 hours a day, so take advantage of the pending order will be very important if you want to leave your computer.
10. Trading without a strategy
A number of the significant period of time should be spent to decide your strategy before you do your first trading as this will make you become easier to concentrate on market events. Most novice Forex traders started trading without having enough knowledge of the currency pairs which they choose, how currencies are influenced by global events and how they plan to take advantage of price movements. It is imperative that you observe the movement of the market price and try to identify patterns of trading before investing your capital. Your observations will help you formulate a plan tradingdan trading style.
Your trading strategy should include the following matters:
- The planned trading frequency
- The period of time in the day to open the transaction
- Technical indicators that will be used
- Buy/sell signals to be used
- Estimates of risk and reward (the risk reward ratio) for each transaction
- Limit stop daily to protect your basic capital amount
Your motivation is a key aspect in trading as a successful trader not too focused to think through the potential profit or loss in the future as a result of their decisions in the present. Experienced traders focus more on process rather than worrying about the number of trading profits or losses that they can experience in trading.
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