What is the main difference between a beginner and an experienced trader? A but only in size: the experience. The trader has already committed enough mistakes in his career unlike beginners. To prepare our clients for errors that may commemtre in management of its account, we have listed below a series of mistakes you commit certain but it is good to know to avoid excessive disappointments. On the foreign exchange market, it is not to avoid mistakes but to limit the consequences.
Mistake # 1: Do not set goals of profit or loss
To reduce the psychological impact of your decisions at the end of your position, it is necessary to set goals for profits and losses. These objectives may be changed if necessary.
Mistake # 2: Yielding to euphoria or panic
Forex is the case in cold blood. Do not buy a currency because you have read in a newspaper. Professionals will tend to sell during the periods of sharp increases and vice versa.
Error # 3: To believe with a supernatural power
It will happen at one time or another have an unusual opportunity.Your ten – fifteen or even twenty past operations have been successful in a space very short. Over this state of grace come quickly, the faster the fall.With each new winning move, you will tend to increase the amount of your positions and làmême your risk. Be aware that a beginner or experienced trader can not be right to 100%. The key is to know unbuckle his position when it is realized
to be wrong.
Mistake #4: Lose the value of money
It may happen in some specific cases that you temporarily lose value money. This situation is dangerous because it leads you to take more risks and more generally with great returns that are not always the rendezvous.
Mistake #5: Do not stop if recurring losses
If during a period of time or longer, you’re going constantly against the market. If whatever decision you make, it is contrary to market. Take a step back. Stop for a while, either in whole or in simulating trading orders either by reducing your positions considerably.
Mistake #6: Follow the advice
Surely the point harder to follow. As a potential investor, you receive hundreds of tips on all sides (financial newspapers, websites,financial advisors …). You’ll tend to follow that which comes from the source the information more secure. Counsel (another): Do not follow that advice if a board that you trust completely based on facts, not only a single print. How many people died following the famous: “Buy X, it goes up!”.
Mistake #7: Do not cut its losses
In adverse or high rise, you must ask the question a moment is whether you should close with a loss now or wait. It is the when the difference between professional traders and beginners will be the most. There are four possible gains or losses. You can save a lot, win
little, lose little or lose a lot. In the long term, small gains and small losses to compensate. You simply take the losses faster than profits, so you get an above market returns.
Mistake #8: Average
Some would argue that averaging (buying more currency with a lot declined to lower your costs or vice versa) allowed them to win lot of money. It’s possible even likely. But in doing so you increase significantly your risk exposure on a single currency, which is more probably on a downtrend or uptrend.
Mistake # 9: Investing in two months with the money for the purchase of a
apartment You can not risk money on a lifetime trying to win some more. It need to know to stay humble. Forex for the short term is not for the money we need, but for the money you are prepared to lose. Only invest what you can lose!
Mistake # 10: Going on holiday in December
How many investors have returned from their vacation in finding a fall consistent with their wallets? If you go on vacation, make sure that all your risk positions are covered.
Mistake #11: Thinking that the market is wrong
What matters is not whether you’re right or wrong, the important thing is to be in
same direction as the market. If you’re right but that the market finds out that 6
months later, what was the benefit of being right? Far wrong, you could put
your money for 6 months.
Mistake # 12: Announcing its gains to anyone who will listen
It is always nice to tell someone you’ve won as much in one day
an employee in a month. This is not the issue sociological or humanistic
problem here. But will you be as expressive on your losses? If you can not stand
not to make losses, do not advertise your capital gains.
Mistake # 13: Follow the Forex real time so that your investment is long term On short-term, forex fluctuates declarations rumors. There is no need to follow your portfolio daily if you are planning to invest over the long term. The weekly consultation is sufficient.
Mistake # 14: Taking the game
The forex is only through investment as others. Do not let it take not on your privacy or your work. Positions may have assumed wrong a bad influence on your behavior and your ability to react to market fluctuations would be greatly weakened. It is essential to keep his blood
cold and separate the forex everything.
Mistake # 15: Process Knowing Nothing in Forex
The best way to learn is of course practice. But if you are on this site is you want to know a little more before acting on the markets. It’s the best things to do. How many investors decided to invest their savings in stock market without any mechanism known stock in reliance on mere hype?
Mistake # 16: Buying a currency because it has declined significantly or vice versa
Why not? You need to ask yourself one question: why has she provided down? Markets can be inefficient for a short period but over a long period, the market is often right. Here we learn that the sum of individualities can go in the opposite direction of the market.
Mistake # 17: Forget the rules!
Throughout your experience on forex, you will forge new rules. It
not enough to apply the rules below, but to apply them according to your
investor behavior. But one thing is sure, once you set
a rule, do not transgress the risk of one day seeing all the other rules
transgressed.
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I am a Forex Trader.I love currency trading.