10 Common Trading Mistakes in Forex
Learn from these ten common trading mistakes that are often made by traders. Take a look and find out the mistakes to avoid in your trading:
Know when to cut your losses.
If you see that your trade is in a losing position, minimize your losses, close your trade and focus on the next winning opportunity.
Forgetting to place your Stop Loss order.
Remember to put in your Stop Loss order so your losing trades get stopped out before you make any big losses.
Remember to use Trading Signals.
Many traders forget to use Trading Signals, providing expert insight in to the markets and helping you make good trading decisions.
Don’t forget to protect your winning positions.
Keep an eye on your winning trades and move your Stop Loss towards your entry point to safeguard your investment. Keep it moving it in the direction of the trend.
Don’t invest more than you can afford to lose.
Even if your trading strategy is working for you, remember not to invest more money than you can afford to lose.
Taking too big a risk, with too little profit.
By monitoring the risk-profit ratio in your trades, your successful trades will bring bigger profits and unsuccessful trades won’t damage your account too much.
Picking the highs and lows of trades.
Many new traders try to predict where a currency pair will reverse direction. Remember you’ll never know the tops and bottoms of trading positions in advance.
Not checking support and resistance levels.
Remember to check the support and resistance level of a position when you place a Stop Loss or Take Profit order. Never place them at the exact rate of the support or resistance levels.
Trade with, not against, a moving trend.
As a trend gains momentum it often strengthens as traders join the trend, so trade on the right side of the momentum.
Focusing on one side of a currency pair.
Become familiar with both the currencies in a pair and how they influence each other, not just one of them.
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