You can avoid these mistakes by using a well-structured trading plan.
Overleveraging Your Forex Account, read full article.
Overleverage is when you take on a large enough position in relation to the leverage available. Insufficient leverage can result in your positions being liquidated even if the market moves only slightly.
Don’t focus on the high leverage offered by brokers. You may find that 100:1 leverage is available. This does not mean, however, that you have to use it. Trades shouldn’t be made based on leverage, like 100:1 and 200:1, rather than trade-specific criteria. They are determined by the technical analysis and/or your fundamental analysis.
When you don’t change your forex trading, it will be too late.
In forex trading, one of the biggest mistakes is not adapting to the market changes.
Trading forex requires flexibility and adaptation, since market conditions constantly change. It is important to always evaluate the market’s overall conditions. Trading styles that involve ranges are not advised if there is a trend in the market.
You should also adjust the technical indicators that you use in line with market conditions.
Insomnia about current events
Current affairs can have a significant impact on your currency trading. Keep up with the latest news to be able trade Forex.
A trend that you identified through your technical analyses may be shattered when an important report is released in the country in which the currencies pair are traded.
You should keep an event or announcement diary if you wish to stay prepared. You should check this every day and once per week. You should plan ahead to be prepared for any events or announcements you are aware of.
Forex: How to Trade Forex Defensively
Trading forex defensively is one of the most common mistakes. Every trader suffers losses. It is natural to become defensive. Read our forex articles to learn how to avoid further losses.
Take a closer look at your mistakes. Concentrate your energy on identifying opportunities that will bring you profit.
Realistically, you can’t retire with just one forex deal. It is impossible to retire from just one forex transaction. You should lock-in your gains and accept a strategy which does not yield 100%.
By clicking the link, you can reach your conclusions.
Avoiding these common forex trade traps requires being realistic and avoiding over-ambition. You should be aware of current market conditions as well as your Forex trading strategy.