The common Forex trader can be absolutely considered its own worst enemy because more often than not, the errors we make as humans are the root of our problems. Trading requires a lot of detailed planning, education, and experience. The Apiary Fund is a great resource for beginner traders because they have such a brilliant way with teaching aspiring traders just coming into the Forex market and showing those traders how to take the steps to be successful and profitable. Here are some suggestions on how to make sure you don't fall for the very common mistakes traders make in the markets.
Hedging is simply a way for traders to protect themselves against a big loss that might come your way. It might be easier to think of hedging as having insurance on your trades. Hedging is a way to decrease the amount of loss you would potentially receive if something unexpected, as it often does in the Forex market, occurs. A simple Forex hedge protects you because it allows you to trade the opposite direction of your initial trade.
Nearly every trader will suffer from a big loss or several in their career, whether it’s due to a technology fritz, a stray from your strategy and discipline, etc. How to bounce back after a big loss isn’t too complicated, it can be accomplished with a few simple steps. The most challenging part of bouncing back is repairing the damage done to your confidence and self-esteem.
Just because getting into Forex is easy doesn't mean that your due diligence can be avoided. Learning about Forex and understanding Forex is so important for your chances at being successful. The majority comes from experience and live trading but even with as much practice as possible, you can't be perfect because the market is unpredictable.