10 Novice Mistakes That See Them Wiped Out Quickly

[StefGrig]

By Kelly Price: Well known mentor and forex expert

Here as part of your forex education are 10 common reasons new traders get wiped out. Make any of these mistakes and you will lose too. so avoid these common mistakes...

1. Buying a Forex Robot With a Simulated Track Record

If you want to win ignore the vast number of forex robots - they cost very little, promise a lot and wipe you out. There gains are all simulated going backwards knowing the data and this does not help going forward!

2. Day Trading and Scalping Systems

Day trading doesn't work as all volatility is random and you can't win. If anyone shows you a track record where they have won, it's normally just a simulation. Don't fall for the hype of day trading.

This applies to both points 1 and 2, there is no expert who can give you success, as success comes from within and having confidence in what you are doing.

3. Using to Much Leverage

You can get 200 or even 400:1, in terms of leverage but to use all of this is madness on a small account. Use maybe 10 - 20:1 - that is enough for most traders.

Leverage up to much and Volatility will get you.

4. Starting with a small amount

You get traders starting with $50 - 100, this is not really an investment at these levels, it's a gamble. Look to start with $500 -1000 minimum and preferably $5,000.

5. Believing You can Trade With low Risk

If you believe many people online, you would think you can trade with the odd loss here and there - but you can't! You will face many consecutive losses and they can last for weeks on end ( this happens to the best traders ) and you need to have the confidence and discipline, to take them until you hit a home run.

6. Predicting Market tops and Bottoms

Try and predict and you are hoping and guessing and your prediction will be as accurate as your horoscope. You can't predict in advance, so don't try, trade the reality of price change only.

7. Trading News

Those stories on CNN, CNBC and on all the other news channels are great stories but that's all they are stories and opinions. They reflect the majority who lose, follow them and you will lose to.

8. Trading to Much

You understandably want to be in on the action but most traders' trade to much and end up trading all the time - this will wipe you out, so have patience.

9. Trying to be to complicated

While some traders don't do any preparation and learn the basics and lose another major set think that being complicated and putting in effort means success - it doesn't. Forex trading is simple and you need to have a simple system and the discipline to apply it and that's all.

Make a system to complicated and it will break, in the brutal world of trading .

10. Know Your Trading Edge

You need to know what your trading edge is. Specifically, the reason you will win while the vast majority 95% lose and you need to have the confidence to apply it with discipline for success. If you don't know what your edge is, you don't have one and you need to continue your forex trading education until you do.

You can win at forex trading but you need to do the basics and get a simple system with an edge you can apply for huge gains. If you do this, then currency trading success can be yours.

[ForexMartTrader]

A trader that can learn not to make any of these mistakes will likely make some progress in the forex market. Learning these rules are fine, but is better to put them into practice so that it will become part of the trading style.

[uncle gober]

by practicing surely we can do the maximum in its forex trading, therefore we take the time to learn to use a demo account first in order to hone his skills in forex trading, and ane can trade forex can be maximized thanks to his study together with discipline TICKMILL

[Nadilapars]

you should make sure everything goes on target, as it's well-prepared in demo accounts, and can be practiced seamlessly in real accounts, and opportunities we can optimize well. by adding insight we can also be a partner to help other traders.