Seven Fatal Mistakes of Forex Traders - How to Fight Them and Beat Them
Fatal M rebateforexbrokertake #1: Fail cashback forexg to Stop Loss Quickly Successful rebateforexfee trading, like successful life, is determined by how well we control our losses, ForexRapidRebate by how well we avoid them If you really want to be a savvy forex trader, learn how to lose professionally by making losses small, rebateforexs the key! How to eliminate the mistake of not stopping losses quickly 1, when things go bad never start a forex trade before you have decided where you should protect your boat is like saying, never start a forex trade without setting a stop loss 2, always stick to your pre-set stop loss this industry goes without saying, but only very few aspiring forex traders can have enough self-discipline to do this why Why is this so difficult to do? Because getting out at the stop loss point is a clear admission that you were wrong. This act does not bring a warm feeling of pride, nor does it build ones confidence. They do this because they have developed a sense of intolerance for positions that dont work for them Forex Rapid Rebate kill them as soon as they get out of trouble (firing unrestrained positions).3 If you have a hard time sticking to your stop loss, get in the habit of selling half of your position first. The forex trader finds their situation less difficult and therefore feels better about how to handle the remaining half of the problem, but because half of the problem no longer exists, coming up with a workable solution becomes easier Fatal Mistake #2: Counting Money Constantly monitoring how a forex trade goes up or down is a devastating activity that can take years of profit away from the forex trader. This process, often called counting money, not only deepens fear, but raises the uncertainty of each moment, making it impossible to focus on the right technique which ultimately determines how much profit we can make Too much focus on the idea of what position you are in, rather than doing what you should be doing, can lead to unwise, uninformed subconscious and too quick reactions Instead, forex traders must be sure that They must be sure that every step of the technique is correct, and that if the technique is followed correctly, profits come naturally. Counting money is usually the fault of forex traders who are not *ready* to profit regularly not only robs forex traders of considerable gains, but also contributes to a chronic sense of uncertainty, fear of loss and an emotional imbalance that can lead to destructive behavior How to overcome the problem of counting money 1, for each Foreign exchange transactions, set two protective sell prices, sell your entire position every foreign exchange transaction you do should have an entry point and two exit points, that is, stop loss and target stop loss is to protect, the target is to profit 2, only when the position you hold reaches the stop loss point or target point to sell, regardless of which occurs before adhering to this principle, foreign exchange traders put the fate of each foreign exchange transaction Put the fate of each forex trade on their forex trading strategy, not on their own greed or fear 3, how when the desire to sell before any sell point can not be restrained, only sell half, retain the remaining half until the strategy allows the sell point so that you both satisfy your desire to sell, while retaining the integrity of your forex trading strategy Fatal error 3: Switching time frames without a This squint is meant to point out a very common mistake that many market participants make: buying in one time frame and selling in another. By switching from one time frame to another, forex traders postpone the ultimate feeling of being a loser by masking their failure with a flimsy plan, paralyzing themselves into a state of fatal denial by fostering false hope that forex traders who make this mistake are in fact unfit to trade forex and that the market will not tolerate their pretense for long. How to Eliminate the Switching Timeframe Error This fatal mistake of switching timeframes cannot be allowed to exist and must be completely eliminated, because every time this mistake is made, the forex trader lowers his level and once the habit is formed, it is very difficult to break 1, if you buy in one timeframe, make sure you buy in the same timeframe 2, when long (short) do not adjust the stop loss down (up) (exit point 1), this is a major signal that you are going to make the mistake of switching time frames correctly used, upward adjustment to protect earnings can be but downward adjustment of the stop loss will lose meaning and will make you more reluctant to do what you were going to do once you have taken this action, you will do it again and again and again These two approaches will easily prevent you from making the fatal mistake of switching time frames Fatal Mistake #4: Needing to know more Its natural for us to need certainty before we act, but the truth of the matter is that the opportunity to make a fortune always comes to those who can act wisely without knowing more The market is ahead of the curve, and big profits always come before the facts. Those who want to know more before they place their bets will always be one step behind and always on the wrong side of the market Those who are not bound by the need to know more are free to act when they truly understand the wisdom of uncertainty, they become chart makers, not chart readers So the point is, you as a forex trader cant afford to want to know more The need to know more is a fatal mistake, a mistake that makes people not act when they should and encourages you to act precisely when they shouldnt. We play the odds, not fortune telling, and forex traders who dont trade until all the facts are clear will never succeed How to eliminate the need to The mistake of knowing too much 1, dont buy on the heels of good news 2, use charts to shape your buy and sell decisions 3, if you find yourself hesitating because you want to know more, then stop and ask yourself: Is what Im looking for necessary for forex trading, or am I just looking for a more comfortable feeling? This question will put an end to the hustle and bustle Fatal Mistake #5: Being too self-righteous When the market is doing very well for you and everything is going in your favor with Forex trading, you cannot escape the destructive hand of negligence When a string of profits bulges your wallet, you must do your best to protect your hard-earned gains and keep a clear head that will help you generate those gains Unfortunately, every Many novices do not understand this because they do not realize that after a significant period of profit making, some of the characteristics of the market environment that they are familiar with are about to change. It is no longer the same market that the forex trader started trading in on day one, it has a different set of characteristics and a different set of opportunities. However, it is when the market is about to change that the untested forex trader starts to become complacent, raising his stakes and taking risks without realizing that the environment that brought him a string of victories no longer exists. After each successive profit, take a step back 1, reduce your forex trading chips by half 2, reduce the frequency of forex trading Fatal Mistake #6: Profiting in the wrong way We all know that money can be obtained in an honest way, on the other hand, we also know that it can be obtained in a dishonest and shameful way The end result may be the same, but the means of obtaining the money may be very different Its like asking a heart surgeon and a drug dealer, who both make just as much money, if they can be equally respected. These people dont realize that they have sinned against themselves and that punishment will follow. These people have learned what its like to succeed in the wrong way and the market will sooner or later recoup these undeserved profits. Once a forex trader has tasted success from the wrong way, they almost always repeat the mistake until the wrong way impresses them and they recover even more money gained from the incorrect way. Forex traders who do not pursue, hope for or in turn enjoy those gains that come to them despite the mistakes they made and the wrong forex trading operations really profit ideally in the market without the gift of the right action and the right way will not always produce profits for the honest forex trader, but one thing is for sure, repeated wrong actions many times will eventually lead to the demise of a lazy The demise of the Forex trader is to make sure you are profiting the right way How to eliminate the mistake of not profiting the right way 1, after each profitable forex trade, review every aspect of the forex trade: buying, initial stop loss setting, waiting, money management, selling, etc. and identify the mistakes and rule violations A key issue is that along with these not really profitable forex trades Whenever a forex trader allows himself to feel like a winner in a forex trade, when in fact it is not really a win, they send a message that what was done was right, well this will reinforce the wrong behavior and encourage a person to repeat these mistakes and needless to say, the mistakes will eventually catch the forex trader 2, aware that the two evil habits of hoping and holding are The two criminals that lead to profiting in the wrong way Fatal Mistake 7: Rationalizing it Lets see if you can hit where the forex trader did wrong in the following scenario An excited forex trader finds a great forex trading opportunity in an intraday forex trading chart Everything looks right and all the market indicators are in place after an afternoon of consolidation on a particularly The forex trader executes and closes the trade at the entry point. After a short period of closing, the trade suddenly starts to turn down, spitting out short-term profits and is now consolidating at the entry point. Forex traders think this is very funny! The afternoon rally has now completely evaporated, the market is clearly weak and retaliatory now his stop loss is only one pip away the forex trader starts researching, looking for clues as to why the perfect entry variety has started to fall after checking all the news (there is no news) the forex trader checks the daily chart yes, the daily chart looks good really good he comments, Im going to move my stop loss down to todays The lowest point is right, it cant possibly fall below that point 10 minutes later, with the perfect entry variety taking his money down to the South Pole, the new stop loss is broken very confused, the forex trader closes the position and cant believe the loss of so much what did the forex trader do wrong? Did the forex trader ignore the vulnerability of the developing market? Not exactly. The forex trader made three fatal mistakes: 1, switching time frame selection and buying on an exclusively intraday basis, from an intraday entry point and a tight intraday stop to a daily chart and adjusting the stop loss based on the daily completely changed the initial forex trade and tilted the initial risk/reward ratio in the forex traders favor 2, planning a Forex trading, but not executing the forex trading plan sticking to the initial plan, no matter what the time frame, is absolutely necessary not executing the forex trading plan puts you in the grace of the market and corrodes the confidence necessary for effective forex trading 3, rationalizing the other two faulty psychological underpinnings that rationalize changes in time frames and plans is a form of raw denial, denying the facts of what is happening HonestyTrue honesty no matter how ugly the truth is will put you above the majority of market participants who cannot summon strength from within, preferring instead to remain comfortable and blame their losses on something or someone other than them If you wish to approach the market with wisdom, planning each of your forex trades is a necessity Most failed forex traders drive by feel, even However, planning your forex trading but not trading as planned is a far worse sin. Those who know how to do it, but dont do it, deserve this knowledge the least, and the market usually takes care to give them the reward they deserve: loss rationalization is hidden behind this and many other fatal mistakes. Because most people are by nature overly optimistic, they find it difficult to end the events that bring them losses and pain. When the time comes to act, it is safe to say that many people fail to gather enough determination and courage to take a leap of faith and instead begin a process of rationalization.