Start a career as a forex trader is a very appropriate decision. Challenges, knowledge, discipline, economic news, psychological factors, and the potential for huge profits, all mixed together in a profession. Something that is very challenging. As a forex trader, you need to know about the common mistakes that could be disastrous for your career in the world of forex. Consider the following.
1. Taking the risk that is too great
There is no quick way to achieve success in the world of trading. To take risks that are too big, you will go bankrupt in a short time and did not have a chance to improve yourself because your capital has been used up.
2. Too many transactions
You may not catch every opportunity in the forex market. With too many transactions, you will be easily fooled with false opportunities.
3. Errors in the transaction
You want to make a deal to buy 1 lot. But because you are in a hurry, you select 10 lots. Therefore, before you execute the transaction, you need to look at first if you are wrong in giving trading orders.
4. Not having a trading plan
What is useful to others is not necessarily good for you. You need to have your own trading plan.
5. Minimizing capital management
The purpose of capital management is to prevent you from risks that are too big, which can make you run out of capital in a short time.
6. Ignoring psychological factors
Psychological factor is very important in forex trading. You must be able to control yourself. Control your emotions, fear, and greed in you. Then you will not make mistakes that will make you go bankrupt.
7. Uses leverage that is too big
Leverage that is too large will make you feel good because you only use a small amount of capital to undertake large transactions. Whereas, if the market moves against your prediction, you will experience a great loss that can make you bankrupt.
8. Did not use a stop loss
This is the most fundamental errors and the most common of the forex traders. They think that by not using a stop loss, they will not experience a loss and the market will move in the direction that they want. But they were wrong! If the market does not immediately move in the direction they want, and keep moving in the opposite direction, their loss would be too great and they will run out of capital. The purpose of the stop loss is not to make you lose, but to limit your losses.
9. Careless in choosing a forex broker
Do not arbitrarily choose a broker. Choose a forex broker that has official permission from local authorities. Choose a broker who does not have permission will jeopardize the security of your funds.
Once again, forex trading business requires your focus and attention. If you underestimate the forex business, you are a great opportunity to experience bankruptcy. You will experience great loss and your capital will be exhausted in a short time. Therefore, understand the mistakes mentioned above, and try to avoid it.
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