Forex is a financial market that is very easy to join but much more difficult to survive.One small mistake can ruin your trading career. To stay here, you have to follow some rules and policies and avoid some common mistakes, which are a threat to your trading career.
We have discussed those mistakes in this article.We suggest that you go through the entire article carefully. Otherwise, you may miss important information. And lack of or missing information never brings any good.
- Large capital risk:
Who does not want to be rich in a short time and hard work?Almost everyone in the world wants it. However, out of the desire to get rich in a short time, many come to Forex and lose everything.
A few days ago, we heard the story of a trader who had been trading very efficiently for quite some time, also making a fair profit.But suddenly, one day, he could not control his greed and invested everything in the hope of huge profit, which was his big mistake.He loses that trade and loses his entire investment.
But there is no way to claim that if the investment is not big, the profit is not big.However, where there is more chance of profit, there is also a chance of loss.So, we should make big trades only after being almost 100% sure by analyzing the market using indicators.
- Unrealistic trade expectations
Forex trading is not imaginary.No one can say for sure right now what the Forex market will look like in the next ten minutes, but one can imagine.So, it is not easy to make a profit by investing money in just ideas.So, it is better not to imagine unrealistic just by relying on assumptions even though you might have access to Saxo markets. Set logical goals at trading as it will improve your decision making skills in an easy way.
- Average Down Process:
When traders enter the trade, they have no desire to apply the average down option. But when their expectations keep rising, they tend to lean towards the average down concept without understanding the actual outcome. They hold their position for a long time.
- Appropriate position:
Being able to trade with the right position is also quite challenging.The key to Forex trading is to be able to understand the trends by observing different indicators and charts. The more accurately he observes this, the faster he will be able to take the proper position.However, the fear is that most traders are hesitant to trade in the appropriate position.
- Trading immediately after a breakout of event
We have already said that the volatility of price in the Forex is very high.So, the market becomes volatile at any time, and there may be a trend change, or there may be an event that will completely change the market environment. It is wise not to trade immediately after this change and to wait.Wait until the market returns to a stable position.
- Entering the market just before the market closes
If you look at the trades on Friday, you can see that most of the time, the price fluctuates a lot.The forex market behaves like this on the last day of the month too. So, it is better not to trade on the day of market closure.However, if you have good fortune, you can make a lot of profit on this day.However, it is not wise to trade depending on luck.
To err is human, and it is natural to make an error on the slippery path of Forex.But it is terrible to make the same mistake again and again.I got a quote that day, “If you make a mistake once, it’s wrong. But if you make the same mistake a second time, it’s your choice.”But if you have the opportunity to learn about the mistake before making it.The damage can be lessened.