There is no such thing as a perfect trade so they say and I am certain that experienced traders would agree to this statement. Admit it! There are errors in the trade and these errors occur either as bugs in computer systems or in trading practices that become an advocacy of trading providers for advertising purposes. They are easily identified if you have been exposed to several experiences in the market. The sad thing however happens to novices who never have idea on such trading culprits. Today, we will expose the 4 common fields of mistakes in Trading Forex.
- Planning Stage
So you finally decided to start working in your demo account for practice. At first, you feel excited about trying to perform some strategies that you have learned from your trading lessons. Then you suddenly feel that things are not going just the way you want it to be. You wonder what may be wrong? For this instance, you may have missed to plan for your movements. While it is true that demo accounts are designed for practice purposes, you have to condition your mind by treating it as a real trade. Thus, try not to make mistakes in every session. Never make a topsy turvy move so results won’t get topsy turvy too. We suggest listing and organizing your strategies to make a well designed plan and see if this action will change your trading outputs.
The market is a very enticing avenue for trading .Some markets offer tempting rates that make you feel like buying every single offer but you have to wait and stop for a while. Trading Forex is not similar to Mall Shopping. The secret to a successful deal with currencies lie in your focus and attention to a single market especially for starters. You are not prohibited to perform in other markets though, but we advise that you only do such acts when you feel that you are already well versed with the trading practices of the first market.
Who you are is what you trade! This means that your personality affects your choice of trading platform,instrument and most of all strategies. Seasoned traders must always keep their feet on the ground especially when dealing with leverage. Greed will never do good in your trade because no matter how high your leverage can take you, we guarantee a possibility of crashing as high as you soared. Leverage tells you that you will always reap what you sow. Pick reasonable leverages that are enough to provide ample profit so losing at the same time won’t hurt you. This is what we call a play safe strategy on leverage.
- Contingency Plans
This field should be included in the strategy planning stage in order to have a back up plan in case forex rates won’t be on your side. When making such a plan, you have to think of your next move if it turns worse. Devise a variety of plans including the amount of risk that you can take in a particular trade.
Nobody is really perfect but what you have to keep in mind is the fact that constant learning, practice and calibration of trading skills will lead to better results. So to limit your mistakes, you have to keep learning and trading at the same time.