Learn Forex Blog

There are reasons why some traders win in trading, and some are not because of mistakes. What are these mistakes? Here it is.

“Top 10 mistakes traders make”

1. trading with emotions

- our emotional  guidance system is really not quite enables us to trades successfully because when it comes to trading it is purely more visual and logical thing

2. not having discipline

- do not take the trading if you don’t know how to control yourself

3. not having a trade plan

-like every business activity, planning is a very important ingredient in trading because of these 2 reasons:

*It keeps you in the right direction

*Trading is a business and successful businesses ALWAYS have                     plans

4. changing the trade plan mid-trade

- this usually happens because of fear, a plan should be based statistics that work overall, not every trade will work out

5. proper money management

- trade 5% margin instead of trading 20% or more margin, and trade another day.

6. increasing your commitment with success

- When you see that you’re winning in the trade, you are tempted to add additional lots to increase profits. But look out, because market reverse right after.

7. adding to a losing trade

- If you are wrong on a trade, just take the loss and wait for another trade.

8. setting a stop loss based on risk tolerance

- A stop should be set to tell you if you were wrong, not on the amount you are willing to lose.

9. using a mental stops vs. stop loss orders

- You will lose more by not using a stop, so, place a stop farther away. This usually happens when you use mental stop is you say “just give it some time, it will come back” and it never does and you end up losing much more than you should.

10. Overtrading your account

- Have patience, you don’t need to trade everyday to make profit.