The foreign exchange market is the world's largest exchange and trades worth several trillion dollars per day. It is easy to see when there is so much money involved that this commercial arena is not a place for the inexperienced or erroneous trader.
Many traders use non-standard methods that ultimately cause them to lose money and their available trading funds. In particular, there are four account lockout errors that make beginners and losers Forex traders who serve to limit their trading success and destroy their accounts in the short term.
Mistake # 1 - The stupid become a funded forex trader probably knows how dangerous. In other words, they have tried to study the market and the application of different techniques, but they do not have a disciplined and repeated method. Instead, they contain a mixture of techniques, theories and tools that do not play well together. Or they use a single method that is inherently inaccurate and leads to small gains and large losses. What they really need is a special step-by-step roadmap to keep them on the lucrative path of winning business and limited losses.
Mistake # 2: Only beginner trading without rules for risk management. That's because there are no veterans who do this - they don't exist because their accounts would have been approved before they reached this profitable milestone. The successful Forex trader needs to know exactly what is at stake, make sure he does not exceed this amount and know what he can afford to lose in order not to jeopardize his account permanently. Acting differently is essentially gambling and not investing.
Mistake # 3: Rely on basic analysis to make short-term business decisions. First, this practice is too time-consuming for fast-moving Forex markets. As technology advances and access increases, Forex markets are moving so fast today that all base data has already been discovered and captured in the currency. This reality denies this information as an effective advantage because traders can access it in an equally distributive way.
Mistake 4: In addition to mistakes in account destruction, there are life-changing bad habits, like wasting countless hours embedded in charts and charts, trying to gain a mysterious and technically oriented advantage that only leads to assumptions of wallet fatigue, frustration. and murder. Wouldn't it be better to have the precious time left for more entertaining activities and still maintain a strict but easy to follow set of rules and methods that can be applied within minutes, even after the market is closed? These are four of the most common and devastating mistakes that beginners in Forex traders will make that prevent them from becoming successful experienced Forex traders.
In summary, the four biggest mistakes in Forex trading ...
... incomplete and poorly integrated strategies and methods,
... absence of risk management and discipline
... excessive dependence on time-consuming and uneconomical basic analysis
... and excessive graphic research combined with poor time management.
Dan Golden knows that many traders find it difficult to trade forex, but he also knows that those who do it right, with the right methods and thinking, can generate significant profits and a more relaxed investment life.