ForexEzy
No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts
No Result
View All Result
ForexEzy
No Result
View All Result
Home Forex Education Forex Basics

5 Forex Trading Mistakes to Avoid

by Tim Baudin
September 14, 2016
in Forex Basics
0
0
SHARES
11
VIEWS
Share on FacebookShare on Twitter

5 Forex Trading Mistakes to Avoid

1. Over Leveraging

By far the most common and most deadly of the trading sins. The massive amount of leverage offered by forex brokers can range from 100:1 or 200:1. to as high as 2,000:1 or 3,000:1. At 3,000:1 leverage you only need around 333$ to take a 1 Million dollars position.

Don’t get me wrong, leverage is a right not an obligation. Just because your broker offers you 3,000:1 leverage doesn’t mean that you have to take a 1 Million dollar position with your 500$ account.

But it does mean being responsible. Keep your risk per trade low, never risk more then 1 or 2% of your account.

2. Not having a Trading Strategy

Most traders especially beginner traders trade without a trading strategy. They trade blind, often changing up their methods on a daily basis depending on what works in the moment.

Always have a formulated trading plan. A good forex trading plan should have the following elements:

– An Entry Point

A trading strategy should always have a well defined entry point. Write down the rules for entering a position and post them on your monitor where you can see them. If you trading strategy is not fully automatic just write down the main rules and stick to them!

– An Exit Point

Where do you get out of a bad trade? Do you cross your fingers and hope for the best? Hope is not a strategy, always have a predefined exit point and write it down right next to your entry point rules.

– Trading Size

Do you know what will be your position size before you get the entry signal? Or do you vary your size based on how you feel once you get the alert to enter? The size of your trades should be directly related to your trading strategy. In general, a good rule of thumb for new traders is the 1-2% limit I talked about earlier

3. Not Following Your Trading Strategy

This trap is as common as number 2. Once you have formulated your forex trading strategy than stick to it! After you enter a trade don’t forget to put in the Stoploss and Take profit orders.

What’s the point of going through the trouble of creating a trading strategy and then abandoning it once you start trading?

4. Using a Trading Method Not Suitable for You

Your trading method should be suitable for your lifestyle. If you work and don’t have the time to watch 1 minute charts don’t try to create a scalping strategy. Pick a daily or 4 hour strategy instead.

5. Not keeping a Trading Journal

Is your trading strategy working? Does the entry need to be tweaked or does the take profit level need changing? The only way to know if any changes are needed is to keep a trading journal.

Write down your wins and losses, as well as your reasons for entering and exiting a trade. Review your journal on a regular basis, at least once a week. It will do wonders for your trading.

The Best Forex Robots Report Is Already Here!
Check out 30+ best expert advisors with daily updated live results and statistics.
ShareTweet
Previous Post

Is Forex Trading For Me?

Next Post

Popular Forex Trading Myths and Realities

Related Posts

KeyDifferences Between the Simple and Exponential Moving Averages

KeyDifferences Between the Simple and Exponential Moving Averages

by Chintan Patel
April 18, 2022
0

Moving Averages (MAs) are often the first indicator introduced to a newbie in any financial market. They remain the bread-and-butter...

Top 7 Most Valuable Currencies In 2022

Top 7 Most Valuable Currencies In 2022

by Tim Baudin
April 11, 2022
0

If you asked the average Joe with little knowledge of foreign exchange which currency they think is the most valuable,...

Best Strategies for Trading the Japanese Yen USDJPY

Best Strategies for Trading the Japanese Yen USDJPY

by Adam Stanley
April 6, 2022
0

The Japanese yen is one of the most popular currencies globally because of the position of the country’s economy. Japan...

The Concept of Correlations in Forex

The Concept of Correlations in Forex

by Adam Stanley
March 31, 2022
0

‘’Hao shi cheng shuang’’ is the Chinese proverb that translates to ‘good things come in pairs.’ As we know, we...

Forex vs. Crypto Trading - Which Is More Lucrative?

Forex vs. Crypto Trading – Which Is More Lucrative?

by Adam Stanley
February 14, 2022
0

Over the last decade or so, we have seen two exploding trends in earning passive income. It’s worth noting the...

Load More

Best Forex Automated Systems

  • TechBerry 9/10
  • Happy Galaxy 8.5/10
  • Forex Cyborg 8.5/10
  • Forex Fury 8/10
  • FXgoodway 7.5/10

Best Crypto Bots

  • Bitsgap 9/10
  • Cryptohopper 8.5/10
  • Pionex 7.5/10

Top Trading Markets

We are dedicated to demystify the world of forex trading for you – no matter what level you are on.

Categories
  • Automated Trading
  • Cryptocurrency Trading
  • Day Trading
  • Forex Basics
  • Forex Brokers
  • Forex Education
  • Forex Forecasts
  • Forex Indicators
  • Forex Market Commentary
  • Forex Robots
  • Forex Signals
  • Forex Tools
  • Forex Trading Strategies
  • Forex VPS
  • Fundamental Analysis
  • Managed Accounts
  • Money Management
  • News
  • Risk Management
  • Social Trading
  • Technical Analysis
  • Top World Traders
  • Trading Apps
  • Trading Psychology
  • Uncategorized
Tags
arbitrage atr Avalanche AVAX Coin bollinger bands cci chart patterns classics copy trading courses Crypto day trading forex brokers forex charts forex ea forex education forex forecasting Forex Indicators forex software reviews grid trading hedging ichimoku macd market cycles news trading oscillators Polkadot price action trading rsi social trading SOL Solana strategies tips & tricks trading bots trading platforms trend trading Video
  • Terms of Use
  • Privacy Policy
  • Compensation Disclosure
  • Risk Disclosure
  • About Us
  • Contact Us

Copyright © 2022 by ForexEzy.com

No Result
View All Result
  • Home
  • Getting Started
  • Forex Education
    • Forex Basics
    • Forex Trading Strategies
    • Money Management
    • Risk Management
    • Technical Analysis
    • Fundamental Analysis
    • Trading Psychology
    • Social Trading
    • Automated Trading
  • Forex Tools
    • Forex Robots
    • Forex Indicators
    • Forex Signals
    • Forex VPS
  • Top Forex Brokers
    • Best Forex Brokers
    • US Forex Brokers
    • UK Forex Brokers
    • MT4 Forex Brokers
    • MT5 Forex Brokers
    • Zero Spread Brokers
    • Best PayPal Brokers
    • TradingView Brokers
    • Social Trading Platforms
  • Top Forex Advisors
    • Best Forex Robots
    • Best Forex Signals
    • Best Managed Accounts
  • Forex Forecast
  • Crypto
    • Best Crypto Exchanges
    • Best Crypto Bots
    • Crypto Guides & Forecasts

© 2022, Forexezy.