Gosh, this article I will talk about couldn’t have been in front of me a few weeks ago???
This is possibly the feeling of alot of people after reading such a truthful article with possibly seen basic information and a basic bullet list, or the usual do and dont’s but hey this is one hell of a true list.
I was browsing linkedin this morning and found this article from a website myforexspace written by Maria from fx-megaforex and in a nutshell it says the following:
Common Mistakes to avoid in trading:
1. Not waiting for the proper trading signal: This tends to happen a lot during those quiet times when the market is consolidating. Some traders even receive the forex signal and open the position thinking they will gain more money, and don´t wait to enter when the entry point had been reach. Don´t do this, wait, be patience, go for a walk, talk to your friends. Just wait for the perfect trading opportunity.
2. Inaccurate use of timeframes: For example, entering on a small timeframe and holding out for a profit target on a much bigger timeframe. Additionally, you can enter a trade based on a bigger timeframe, thus using that larger timeframe for stop placement, but taking advantage of a smaller timeframe for confirmation and entry.
3. Keeping a lose position: Instead of accepting that fact and closing the trade, you let it run, hoping for the market to return. Sure, there might be times that this works out, but more often than not we will just have to close the entire trade at a bigger loss.
4. Risking to much: Never risk more than you can afford to lose. There is rule of 5% of your total account. So don´t risk more in one trade, Forex can literally clean out your account with just one bad position.
5. Trade without looking to major economic & political news: Please at the beginning of the week, always look for the economic news that will have big impact in the currencies. Check out this events, and trade accordingly. If you are a beginner or newcomer, don´t trade news until you are well advance. News are very volatile and the currencies move real fast, so be careful.