The last week we present a report on the psychological that affect the forex trader, and attributes that should have a professional trader. For continuing the same line, today we bring you a list of the major mistakes in incurred for the same reason.
1 - Pride. Many Forex traders after winning three or four consecutive trading transactions they believe they know everything, when in fact there is always more to learn, much of which is accomplished with long hours of practice. Too much self-confidence can lead to serious mistakes. The ability to accept Forex trading mistakes and learn from the professional trader will improve and build a solid career as a professional trader.
2 - Lack of Confidence. It is the opposite to the previous point (pride and arrogance), but with the same negative consequences. Lack of self-confidence creates fear, which paralyzes the operator limiting their ability to reason and analyze the price movements clearly. The design and follow a proven Forex trading strategy and a reasonable period of practice, can help build confidence and control fear.
3 - Blind Signal Monitoring and Indicators. This is one of the most common psychological weaknesses. At the first sign, some traders are to be the first to enter the market without really analyzing the reasons for certain movements, or the impact of economic data-informed, or simply wait Confirmation of trading. And then, once given the "false alarm", already in the losing position.
4 - Greed. The desire to win more and more, is one of the biggest weaknesses of forex traders, and facing an upward trend often fail to pull out in time with its earnings before the start of the fall. The key is to take profits right on time, and not attempt to exploit a trend from end to end. Therefore, it is very convenient to place a reasonable stop loss before and compromise and respect no matter what.
5 – Over trading. This is another of the major errors committed by forex traders, risking more than your bank can absorb. Focus on the "quality" of each transaction and not on the "quantity". Forex professional traders suggest that should not use more than 10% margin in forex trading.
6 - Laziness. Sometimes due to time, in other negligence, some operators postpone the definition of an effective trading plan, including the criteria for entering and exiting the market, and a money management plan. Invest the time and dedication needed to design and test cost-effective strategies, and subsequent systematic application, you will avoid many headaches later.
7 - Impatience. Impatience usually leads to enter and exit positions at the wrong time. Know how to recognize this emotion in oneself and identify the moments that often arises, help control it. The discipline to faithfully follow the designed plan will also help prevent impulsive actions caused by anxiety.
8 - Fear and Indecision. After several unsuccessful operations, with its attendant losses, Forex traders are away in self confidence and they become fearful and uncertain, which leads to close positions with minimal profits to avoid any loss. In fact, the rule should be: Quit losing positions quickly, and wait patiently when it is winning.
9 - Obsession. Spend hours on the computer analyzing all charts and indicators will not ensure success in trading.. While a certain amount of information and Forex trading analysis are essential, no Forex technical or fundamental analysis alone can predict market trends accurately and many other factors that also impact on the daily fluctuations. Too much analysis leads only to poor time management, scarce and highly valued today.
10 - Outlook. Consider reasonable and realistic goals in Forex trading is essential to avoid further disappointment when results are achieved. Remember that forex trading is a business with high volatility, so that losses become a natural part of the process. It is essential then to understand that the most important are the gains in the long term and not on each transaction. When expectations are met, generate more enthusiasm and desire to continue learning.
What about Forex trading mistakes?
The first is to accept mistakes as opportunities to learn Forex, and approach them in a positive light, thus avoiding frustration.
Once adopted this position, will be able to devote to identify what went wrong to avoid falling back into it. Make a list of current and potential consequences of the trading mistakes in question, and determine action plan and learn how to avoid them.
Finally, take the necessary actions to ensure that you have learned your lesson and will not fall into this mistake. To do this, surely you must modify and improve your behavior.
Learning from mistakes makes them change their connotation from negative to positive, playing in his favor by enriching their learning experience throughout his career as a professional trader.
related posts
- elliott wave trends and charts
- forex super signals
- macd and stochastic indicator
- best zigzag indicator
- fx sniper t3 cci
1 - Pride. Many Forex traders after winning three or four consecutive trading transactions they believe they know everything, when in fact there is always more to learn, much of which is accomplished with long hours of practice. Too much self-confidence can lead to serious mistakes. The ability to accept Forex trading mistakes and learn from the professional trader will improve and build a solid career as a professional trader.
2 - Lack of Confidence. It is the opposite to the previous point (pride and arrogance), but with the same negative consequences. Lack of self-confidence creates fear, which paralyzes the operator limiting their ability to reason and analyze the price movements clearly. The design and follow a proven Forex trading strategy and a reasonable period of practice, can help build confidence and control fear.
3 - Blind Signal Monitoring and Indicators. This is one of the most common psychological weaknesses. At the first sign, some traders are to be the first to enter the market without really analyzing the reasons for certain movements, or the impact of economic data-informed, or simply wait Confirmation of trading. And then, once given the "false alarm", already in the losing position.
4 - Greed. The desire to win more and more, is one of the biggest weaknesses of forex traders, and facing an upward trend often fail to pull out in time with its earnings before the start of the fall. The key is to take profits right on time, and not attempt to exploit a trend from end to end. Therefore, it is very convenient to place a reasonable stop loss before and compromise and respect no matter what.
5 – Over trading. This is another of the major errors committed by forex traders, risking more than your bank can absorb. Focus on the "quality" of each transaction and not on the "quantity". Forex professional traders suggest that should not use more than 10% margin in forex trading.
6 - Laziness. Sometimes due to time, in other negligence, some operators postpone the definition of an effective trading plan, including the criteria for entering and exiting the market, and a money management plan. Invest the time and dedication needed to design and test cost-effective strategies, and subsequent systematic application, you will avoid many headaches later.
7 - Impatience. Impatience usually leads to enter and exit positions at the wrong time. Know how to recognize this emotion in oneself and identify the moments that often arises, help control it. The discipline to faithfully follow the designed plan will also help prevent impulsive actions caused by anxiety.
8 - Fear and Indecision. After several unsuccessful operations, with its attendant losses, Forex traders are away in self confidence and they become fearful and uncertain, which leads to close positions with minimal profits to avoid any loss. In fact, the rule should be: Quit losing positions quickly, and wait patiently when it is winning.
9 - Obsession. Spend hours on the computer analyzing all charts and indicators will not ensure success in trading.. While a certain amount of information and Forex trading analysis are essential, no Forex technical or fundamental analysis alone can predict market trends accurately and many other factors that also impact on the daily fluctuations. Too much analysis leads only to poor time management, scarce and highly valued today.
10 - Outlook. Consider reasonable and realistic goals in Forex trading is essential to avoid further disappointment when results are achieved. Remember that forex trading is a business with high volatility, so that losses become a natural part of the process. It is essential then to understand that the most important are the gains in the long term and not on each transaction. When expectations are met, generate more enthusiasm and desire to continue learning.
What about Forex trading mistakes?
The first is to accept mistakes as opportunities to learn Forex, and approach them in a positive light, thus avoiding frustration.
Once adopted this position, will be able to devote to identify what went wrong to avoid falling back into it. Make a list of current and potential consequences of the trading mistakes in question, and determine action plan and learn how to avoid them.
Finally, take the necessary actions to ensure that you have learned your lesson and will not fall into this mistake. To do this, surely you must modify and improve your behavior.
Learning from mistakes makes them change their connotation from negative to positive, playing in his favor by enriching their learning experience throughout his career as a professional trader.
related posts
- elliott wave trends and charts
- forex super signals
- macd and stochastic indicator
- best zigzag indicator
- fx sniper t3 cci
Forex is simple follow the trend and you will rich.
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