Five most common mistakes on Forex

It happens that 96% of newcomers sooner or later end up

It happens that 96% of newcomers make five most common mistakes on Forex

Before you choose your broker and put your capital for the first time, we recommend looking at the main reasons why traders are making losses when trading on Forex. We’ve got the job done and we’ve figured out where it often happens that 96% of newcomers to Forex sooner or later end up.

Here are the main reasons:

– You risk too much of your trading account assets!

Everyone should prioritize the transaction risk. Only deal with what the trader is able to accept in the event of a loss. The financial lever is a two-handed weapon that can bring a quick profit, but also a loss. So, make sure you have enough reserve and close your trades worth less than 3% of your tradable account.

Specific Risk Reduction Tips:

1. You will start with adequate capital about 500 USD.
2. Use a small leverage, less than 10.
3. Divide the risk ratio into multiple trades with lower amounts.

– The risk is greater than any profit!

When setting the automatic closing of the loss trade, some traders move the loss limit further than the profit margin to avoid automatic closing of the trade with a slippage. Trader risks more than he can get, which is a statistically long term loss strategy. It’s also interesting to see how your brain works.

– Do not develop more strategies!

For beginners, there is often only one trading strategy (eg, ranging and subsequent scalping). It is good to learn as many different strategies as possible and try them on your demo account. The more you know about the mechanics of Forex movement, the lower the risk.

– A pointer is not expected!

The trader should wait for the right move change indicator before buying or selling a currency pair. Estimating change in motion without indicators is a 50:50 risk. For trading on Forex, this rate of risk is not called trading.

– We are people, greedy, unwise, indecisive and omnipotent!

We often encounter the fact that traders give emotions to their decisions. In other words, it changes the set automated parameters, thus delaying the closure of the already profitable position for the sake of greater profit. Our advice to newcomers is that Forex will be here tomorrow and risk the already achieved profit, it is irresponsible.

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