Trading forex can be very rewarding, but most people give up so easily. Generally, as a high-risk market, forex offers a high return on investment, and most traders also lose their investment too.
A new forex trader ask me recently “Why do people lose money on forex?” the truth is, the market is programmed for people to lose their money. Even the best forex trader in the world lose money. For the record, any forex trader that tells you that he/she has not lost money before on forex is lying.
As a forex trader with some years of experience, I can tell you authoritatively that trading forex is fun when you have the right tool, the right philosophy, the right network, and the right Brooker.
4 mistakes to avoid when trading Forex
1. Trading without a strategy
The first challenge I faced in my first months of trading was trading without a sound strategy. My mentor then told me two things, sell when it is up, buy when it is down. I adopted the strategy, made some money during my first few trades, then boom I started losing money, I was confused, it took me days to understand that there was more to sell when it was up and buy when it was down strategy. I watched series of You-Tube videos, the more I watch, the more confused I became, but at some point, I had a breakthrough. I started learning price action, moving averages and Bollinger band crosses. That was how I was able to develop my first trading strategy.
2. Trading always
Don’t fall into the temptation of trading every time. Develop a trading schedule and stick with it. But even with your schedule, don’t enter the market, if the market condition does not satisfy the conditions from your trading strategy. It is better to build your profit slowly than to lose consistently because you fail to follow your trading strategy.
3. Trading with the wrong lot size
Trading with the wrong lot size is very common with new traders and it’s a wrong approach to trading. Even after analyzing the market and you are 100% certain that it will go your direction, don’t use a bogus lot size stick to the lot size on your trading strategy.
4. Trading the wrong asset
You don’t have to trade every currency pairs or indices to be successful in forex. Get a few pairs, study their history, follow their analysis, and you will enjoy the forex market.
Do you have any questions or experience, please feel free to share below