Avoiding the Top 10 Most Common Forex Trading Mistakes

How to Avoid the Top 10 Most Common Forex Mistakes

Hi guys, I just want to share with you the top 10 common mistakes to avoid as a forex trader. 

1. Do not be over confident because you have had a few winning streaks. ALWAYS stick to your plans and avoid getting emotionally involved in your trading decisions (This is where Psychological Analysis plays a major role)

2. Be well grounded in your knowledge of Technical and Fundamental Analysis and don't get carried away by those hungry vendors out there who want to sell their systems.

3.Do not use too many indicators. Use preferably 2 or 3 indicators. The simpler, the better.

4. Make sure you understand the difference between leading and lagging indicators. Many traders wonder why they are losing money because of wrong application of these indicators.

5.  Day trading movements do not indicate trends. Always remember - short term price movements are random and trading them as a long term strategy will make you lose money.

6. Having a good mentor and trading smart helps you make money.

7. Be careful when trading news after it has been announced. 

8. Avoid buying trading systems on the internet as much as possible.

9. Do not over trade. Have a good money management system in place and trade accordingly.

10. It is always wise to use stop loss and trailing stops. Also select a very good point for your stop loss and trailing stops, not too close to your trading price, if not you'll be stopped out.

Have a wonderful 'pipful' day. I'll be adding more tips for your trading success.

For those of you in Ibadan, Nigeria, we hold a forex trader's forum regularly.  You can send a mail to questconcept1@gmail.com for more information.

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