5 mistakes more common in Forex

The 5 mistakes more common of the operators of foreign currency

Beginners are not the only ones who make mistakes in financial markets. In fact, many experienced participants have mistakes when they do not apply a good discipline or allow your intuition or feelings to come into play. So you ask not what have professional operators that you don't have, since the answer is quite simple. Often, newcomers choose trading strategies with priorities based on wrong criteria: emotions. This harms more than benefits and causes inefficient results.

Sometimes, people too strive to earn money and conquer the market. This will so desperate and irrational clouded your thoughts. The worst mistake you can make is to start to do trading with this kind of mentality, because it will lead to more losses than gains. Before entering Forex, be sure to understand and accept the fact that market can be random, and the best thing is that you are in harmony with it.

It controls the market; don't you check

It might sound as a paradox, since it actually is. However, among the less you feel the obligation to Trade Forex, you will be easier to make a profit. It makes clear that you must succeed in this business. There are errors that you cannot avoid, such as operating in excess, open stupid positions, using leverage, among others. This will occur. However, your goal is winning logic and discipline in your actions, and avoids more mistakes.

You may not take it seriously, even if no matter how many videos, webinars, articles from blogs or other useful tools there are, there are a lot of beginners who continue to commit the same errors that prevent them to take your trading to the next level. One of the worst mistakes is not to limit losses in time, which is a great example of what happens when the ego takes control. There are people who do not admit their mistakes, making it suffer small losses that are emotionally and financially harmful. To avoid this, remember a very important rule: limit your losses quickly. To go into more detail, we will present a list of the 5 most common mistakes committed novice operators, together with the actions that you must take to avoid them when you explore the Forex market.

The 5 most common mistakes

There are 5 potentially harmful errors that can decrease your profits. However, through knowledge, you can avoid the discipline and new perspectives.

1. Do not have a Trading Plan:

Experienced operators know exactly the points of entry and exit from the market, the amount of capital to invest in each operation and the maximum loss who are willing to assume. On the other hand, it is unlikely that beginners have a trading strategy at the time of going to Forex. And even if they have a plan, tend to leave if things don't go as expected.

2. Open positions before the news:

Forex calendars are good tools to find out what is happening in the market. However, keep in mind that even if you have great faith in movements that will cause the news in the market, it's really impossible to predict the behavior of prices. It is very common to display numbers or additional indications that provoke irrational fluctuations in the market.

3. Operate right after the news:

Waiting to reduce volatility caused by the news and prices develop a definite trend. This tip will allow you to more effectively manage your risks, having a more stable direction and not face liquidity problems.

4. Average down:

There are many problems that arise from this practice. The main is that maintaining a losing position is a voluntary loss of time and money. Remember that you must achieve rising with the remaining capital profitability to recover a loss. Occasionally, averaging down may help, although in the majority of cases it leads to inevitable losses. This is because that the trend may remain for a longer time that you can keep your liquidity. You must take advantage of trading opportunities when they occur and end bad operations quickly.

5. Avoid the duties:

Beginners usually do not comply with their duties nor researched enough before operating. The duties of the trading are crucial, as newcomers to the market generally do not know seasonal trends, times of releases or patterns of prices. These people want to open operations as soon as possible rather than taking the time to carry out a thorough investigation. Such an attitude only leads to a pretty expensive lesson.

Trading can be really profitable if it is carried out with caution and avoided the mistakes mentioned above. While the majority of operators have made these mistakes, beginners should be careful not to repeat them, since they do not have the same capacity to overcome the failures in the trading that experienced investors have.