Everyone knows the fact, trading is the most profitable profession in the world. Those who have mastered the art of trading can easily develop their trading skills and change their lifestyle. But learning to trade the Forex market is not an easy task. Statistically speaking most of the traders are losing money since they don’t dare to deal with the loss. Some of them are overconfident and embrace big losses and lose their entire investment. But this is no way the professional should trade the Forex market. Mistakes that can ruin your trading career should be avoided at any cost. Some of you may think, you know all the details but such mentality can be lethal for your career. Let’s learn about the major mistakes that act is big threats to your career.
Looking for too many signals
The naïve traders are always trying to execute more trading. They are looking for too many trades since they think it is the only way to make more profit. But if you look at the experienced traders, you won’t find trading all day long. They are a concern with the frequency of their trade execution. The high-frequency trading method should not be your prime method in placing the trades. You might be a new trader but still, you should limit your trade execution frequency. Analyze the market trend in a very organized way so that you can find good trades.
Not following the rules
Breaking the rules is another key issue for which the naïve traders are losing money. If you start focusing on the trading method of the pro traders, you will be surprised to see their organized approach in trading. But developing an organized approach takes times and you must use the Forex trading demo account. The demo account is the perfect place where you can create sets of trading rules. Rules shouldn’t be broken by the retail traders as it will impose a direct threat to your investment.
Not using a trading routine
By now you the importance of rules in trading. But can you follow the rules and stick to your strategy? It’s a very tough task and it requires the use of trading routine. If you start executing random trades without following the trading routine, you are not going to succeed. Most of the time the traders are losing money since they don’t have specific guidelines to place their trade. Placing random trades significantly increases risk exposure. As a currency trader, you should think like the smart traders at Rakuten. Stop placing random trades without following the basic rules as it ruins your career. Focus on the simple method and you will understand how to make some serious profit without risking too much.
Relying on the indicators
Indicators can be very useful tools when you use them in the right way. Sadly the new traders are always using the indicators in the wrong way and losing money. Have a look at the elite class traders at Rakuten. Some of them are not even using the indicators. The use of indicators should be limited to the trade filter process only. If you start using them to find the potential buying and selling spot, you have to lose most of the trades. And always make sure you are not using too many indicators as it will increase the chances of losing money. Use one or two indicators but make sure you learn its use properly by using the demo account.
Trading the major news
News trading is a very risky task and even the pro traders fail to nail the trade. As a new trader, if you think news trading can significantly improve your profit factors, try to make consistent profit in the demo environment. Unless you can make significant progress in the demo platform, you should not try to trade the major news with real money.
Image Credits: D'Vaughn Bell