subject: Forex Mistakes That Lead To Failure [print this page] Forex Mistakes That Lead To Failure Forex Mistakes That Lead To Failure
Prior to starting your forex career, you need to prevent yourself from making mistakes that can cost you your trading career. This article will help you identify those mistakes.
Avoid A Trading System
Working with a trading system usually increases your chances of success. It provides you an objective way to invest. When building a trading system, traders reason impartially as there is no place to be obtained at that time. Thus, when there is no position, it reduces the risk of losing money. Therefore, when the possibility of losing money does not exist, you may invest in any possibility as all are low risk opportunities. Therefore, make sure you invest randomly and do not use any trading systems that assist you in trading.
Be Wild
If you follow a trading system, it will assure you success and will provide you with good trading opportunities. If you do not want to succeed, be wild and undisciplined while trading.
Stay Unaware
Successful traders are usually knowledgeable and educated in their respective trading market such as stocks, forex, futures etc. If you get the required knowledge, you may become an expert trader and make huge profits. Make sure you avoid forex training programs and any news relating to forex trading to ensure your failure.
Avoid Money Management Techniques
Money management prevents the risk of damage and also allows you to increase profits simultaneously. By avoiding money management techniques you can assure that all your money is lost in 10 trades continuously. Using simple money management may prevent such a situation. So, if you want to fail at your trading career, avoid money management.
Don't Worry About Psychological Problems
Successful traders are aware that it is not necessary to win every trade to make profit. So, if you want to fail in trading, make sure you believe that you need to win every trade.
Avoid A Risk-Reward Ratio (RR) Greater Than 1-1
Using a RR ratio of 1-2(profit twice the money risked), means that a system that is right about 50% is required to earn. Similarly, using a RR ratio of 1-3 (profit thrice the money risked) means that a system that is right about 40% is required to earn. So ensure that you use a RR ratio that is below 1-1.
By using all the highlighted points in this article, you can ensure that your forex trading career does not succeed. However, if you plan the opposite, you can ensure that you achieve consistent profitable results through your forex trading.
