Mistakes Costing Profit Trader When Trading Forex
1. You should not spend profit until the moment you have been able to earn it.
Having opened a profitable trading position, you are in a euphoric state, you are already calculating your monetary success. But this attitude to trading can lead you to big losses due to the fact that this is the type of trading when you are already dreaming about the profit that you have not yet received.
A serious problem arises when, being in your dreams, you are not ready to close the deal, when the trend reverses and the market eats up the profit you received, because you are confident in your rate and do not pay attention to the current market situation.
Having opened a profitable trading position, you are in a euphoric state, you are already calculating your monetary success. But this attitude to trading can lead you to big losses due to the fact that this is the type of trading when you are already dreaming about the profit that you have not yet received.
A serious problem arises when, being in your dreams, you are not ready to close the deal, when the trend reverses and the market eats up the profit you received, because you are confident in your rate and do not pay attention to the current market situation.
2. You are trading with money that you are not ready to lose.
The main mistake of a Forex trader is trading with money, which is initially designed for some other action, for example, paying bills, a loan at the Agricultural Bank or buying a certain thing. And you cannot afford to lose this money. Such money is also called “intimidated”.
When trading on Forex with such money, there is a great risk of losing it due to the fact that the trader is trading relying not on his own logic, but impulsively, under the influence of violent emotions and fear.
When you are going to trade in a similar situation, it is better to stop and stop trading until you earn the necessary amount of money, the loss of which will not bring you significant problems, and which you will not be afraid to lose.
3. Expectation of complete confidence to complete the transaction.
Most Forex traders have the trait of making sure the trade is profitable. Traders are waiting for confirming factors to enter the market: technical or fundamental, who is more comfortable with which. Someone is waiting for the opinion of advisers and analysts. By biding their time, they want to make sure that the trend is going in their chosen direction.
This strategy is good, but within reason, since a very long wait before entering the market is a significant mistake. By letting trade go outside your participation, you increase your risk. Since the more the trend moves forward, the fewer traders are left who can enter the market. Ultimately, the trend may not go further. Such traders usually sell at the bottom of the trend, but buy at the top and think that they are choosing the wrong market, regardless of their time of entry and exit into the market. This situation can be compared to the game of "third person", when someone is ultimately left without a chair.
The trader should not forget that there can be no reliable certainty in any trade. You should take risks, expecting a profit.
The main mistake of a Forex trader is trading with money, which is initially designed for some other action, for example, paying bills, a loan at the Agricultural Bank or buying a certain thing. And you cannot afford to lose this money. Such money is also called “intimidated”.
When trading on Forex with such money, there is a great risk of losing it due to the fact that the trader is trading relying not on his own logic, but impulsively, under the influence of violent emotions and fear.
When you are going to trade in a similar situation, it is better to stop and stop trading until you earn the necessary amount of money, the loss of which will not bring you significant problems, and which you will not be afraid to lose.
3. Expectation of complete confidence to complete the transaction.
Most Forex traders have the trait of making sure the trade is profitable. Traders are waiting for confirming factors to enter the market: technical or fundamental, who is more comfortable with which. Someone is waiting for the opinion of advisers and analysts. By biding their time, they want to make sure that the trend is going in their chosen direction.
This strategy is good, but within reason, since a very long wait before entering the market is a significant mistake. By letting trade go outside your participation, you increase your risk. Since the more the trend moves forward, the fewer traders are left who can enter the market. Ultimately, the trend may not go further. Such traders usually sell at the bottom of the trend, but buy at the top and think that they are choosing the wrong market, regardless of their time of entry and exit into the market. This situation can be compared to the game of "third person", when someone is ultimately left without a chair.
The trader should not forget that there can be no reliable certainty in any trade. You should take risks, expecting a profit.
Mistakes Costing Profit Trader When Trading Forex
4. Your opinion about the Forex market.
The Forex market does not care what you think about it and what your opinion about the trend movement or the opinions of various analysts and consultants is, even if all aspects of fundamental and technical analysis are taken into account.
5. Violation of your chosen trading plan.
If you deviate from your chosen plan, there is a high probability of losing trading.
When a trader starts to rush: he trades for a week using some rules, then switches to completely different rules, in the end he cannot understand and make sure what really works, which rules work and which do not. The trader should use the initially chosen strategy until the moment when it brings him a stable profit.
Trading on the Forex market according to the chosen strategy is to use its advantages to trade on it many times, this is like a license from the Ministry of Emergency Situations, the price of which costs much more than just financial costs. The trader is the most vulnerable, which means he must be the most careful when switching from one method to another after small losses.
The Forex market does not care what you think about it and what your opinion about the trend movement or the opinions of various analysts and consultants is, even if all aspects of fundamental and technical analysis are taken into account.
5. Violation of your chosen trading plan.
If you deviate from your chosen plan, there is a high probability of losing trading.
When a trader starts to rush: he trades for a week using some rules, then switches to completely different rules, in the end he cannot understand and make sure what really works, which rules work and which do not. The trader should use the initially chosen strategy until the moment when it brings him a stable profit.
Trading on the Forex market according to the chosen strategy is to use its advantages to trade on it many times, this is like a license from the Ministry of Emergency Situations, the price of which costs much more than just financial costs. The trader is the most vulnerable, which means he must be the most careful when switching from one method to another after small losses.
6. Eliminate all requests, wishes and hopes in relation to the market.
We repeat once again: the Forex market is absolutely indifferent to your opinion about it, about your hopes placed on it. All your pleas and requests are simply meaningless. Remember one thing: if you make a wrong move, the best thing to do is to close the position immediately.
7. Never fall in love with a trend or any deal.
Be cool when making any even seemingly extremely profitable trade in Forex. Don't let your emotions play a trick on you, it can cost you dearly.
We repeat once again: the Forex market is absolutely indifferent to your opinion about it, about your hopes placed on it. All your pleas and requests are simply meaningless. Remember one thing: if you make a wrong move, the best thing to do is to close the position immediately.
7. Never fall in love with a trend or any deal.
Be cool when making any even seemingly extremely profitable trade in Forex. Don't let your emotions play a trick on you, it can cost you dearly.
8. Lack of clear intentions about the moment of exiting the market.
Some traders enter the market completely without knowing when they will close an open position. Lack of an exact plan to close a trade can lead to the market turning around, changing its direction or in a state of correction, and you will not know what to do - exit or wait for a trend reversal, especially if the trade is unprofitable. The best way to prevent unprofitable rates becomes even worse - to determine before entering the market when you will close a trade and either clearly determine this price value or immediately set take profit and stop loss.
9. Self-conceit.
Often people come to trade on Forex and who have already achieved success in other areas of life.
And now they have developed a great conceit of themselves, their talents and abilities, and the confidence that they cannot fail. However, conceit can play a bad joke with them, since they do not even allow the thought that they may be wrong, and as a result, they will not be able to refuse and get out of unprofitable positions. Forex traders need to remember that all diplomas, all your achievements and regalia are not important for the market.
Some traders enter the market completely without knowing when they will close an open position. Lack of an exact plan to close a trade can lead to the market turning around, changing its direction or in a state of correction, and you will not know what to do - exit or wait for a trend reversal, especially if the trade is unprofitable. The best way to prevent unprofitable rates becomes even worse - to determine before entering the market when you will close a trade and either clearly determine this price value or immediately set take profit and stop loss.
9. Self-conceit.
Often people come to trade on Forex and who have already achieved success in other areas of life.
And now they have developed a great conceit of themselves, their talents and abilities, and the confidence that they cannot fail. However, conceit can play a bad joke with them, since they do not even allow the thought that they may be wrong, and as a result, they will not be able to refuse and get out of unprofitable positions. Forex traders need to remember that all diplomas, all your achievements and regalia are not important for the market.
In a situation where you are wrong and make a mistake, the market behavior does not lend itself to your charm or any explanation.
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