Every trader wants to avoid the mistakes of others, in order to make profits and be successful themselves. In a field where traders are seeking to make profits and turn profits into money, a mistake can turn out to be very costly and ruin one’s perception of trading. Just like with any other business and fair trade, the foreign exchange market is no different when it comes to following some guidelines and principles.
The number one mistake traders can make is not having the appropriate education to guide them into the market and show them what to do in order to be successful, and what not to do. I started my forex journey with The Apiary Fund and still continue to get help and guidance from them. Having a good strategy and system is simply put, not enough to ensure you can be successful in the foreign exchange market. Beginner traders often practice too little and not get the education they need in order to be profitable, and they end up losing money, and the determination to be successful in the foreign exchange market. That’s why the right education is so important because it gives you access to endless articles, attending webinars, getting help from professional traders and practicing on a demo account before working your way to a live account.
Another very common mistake is not having a sturdy trading plan. When going into business, you always need to have a plan, and when going into the foreign exchange market, it is no different. Not having a forex trading plan that has been practiced and tweaked, is one of the most common widespread mistakes amongst traders. The lack of a solid foundation for a trading plan may be due to traders not having a basic understanding of how serious a practical trading plan can be to their success.
One trait you really need to avoid as a forex trader is impatience. Having patience is an extremely useful trait to have because with how quickly the market is constantly moving, and with all the breaking news, changing prices, etc. there can be a very common feeling of anxiety to act quickly, but that is a common misconception. The reality is the market is not waiting for you to make your move into the market and then reward you. You want to protect yourself with stop losses in case your trades don’t go your way. Never risk too much money on any one trade. Most professional traders would recommend traders only risking around 1-3%, such as The Apiary Fund has done for me and the rest of its trading community. I hope this helps inform you of what you need to be mindful of when getting into the Forex industry!