Common Forex Mistakes (Continued)

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Not learning from experience

You need to build your knowledge through trading in order to build your confidence as a trader. Don’t commit too much of your capital until you have gained this experience. Build as you go along.

Not setting targets

Both in the short term and in the long term you need to have targets. For individual trades you need to set your exit points, and for your forex trading as a whole you need to set profit targets. Otherwise you have no basis for closing trades, which will impair your decision-making, and you are not measuring your performance against your own ambitions.

Spreading your interest too thinly

There are many forex pairs to choose from: majors, minors, exotics. You don’t have to trade them all! Most successful forex traders focus on a number of pairs they understand well. This can be a more economic use of your valuable time.

Trading too much

When your trades are in profit you may find yourself tempted to strike while the iron is hot and place some extra trades, thus undermining your original trading plan. Remember, the fact that you’ve had some successful trades doesn’t mean that everything you touch will turn to gold.

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