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Biggest Trading Mistakes!

Lesson 6: DANGER - Biggest Forex Trading Mistakes!

Everybody makes mistakes especially if you just started something new and exciting and even if you are experienced forex trader. However, mistakes in forex trading result in loosing money and loosing it quickly. So "learning from your mistakes" might result in major money loss, which is the opposite of the whole forex objective!   

MISTAKE 1: I am smart enough and I don't need to read about forex market, get forex training or even look at historical charts.

WRONG! You definitely should NOT stop educating yourself about forex trading.

WHY? Well, even if you are very smart, it doesn't mean that you should stop reading and digesting more and more information about trading. The only way you can get successful in trading market is by learning as much as you can about forex and by practicing your skills.

MISTAKE 2: I created a very complicated system (because I am extremely smart – reference to MISTAKE 1!) and it is absolutely unbeatable.

WRONG! If you think that devising a complicated trading system will bring you success you are about to be disappointed.

WHY? Well, let's see. Forex isn't some regular profession. You are not getting rewarded for being clever and creative. In forex market you get profits only when you are right. So even really super duper clever forex traders loose when they try to create a very complicated system. The reason is actually quite obvious – simple makes perfect! Keep your trading system and methodology nice and simple and you will succeed.

MISTAKE 3: I have heard that only day trading makes money so that's what I want to follow from now on!

WRONG! That is a huge forex trading lie. Have you actually seen a day trader with a long term profit records? You can try searching but be assured that you will never find even one, unless there are day trading aliens who know something humans don't!

WHY? Disappointing, I know! But let's consider a simple fact that all daily volatility is random. This leads to the fact that prices are actually random too, which means that you cannot get the odds on your side.

MISTAKE 4: I need money and I know for sure that with forex trading I can get rich very quickly.

WRONG 90% at a time! You can get rich very quickly but usually it doesn't happen… Oh how we all wish it was true though, huh?

WHY? Forex trading is not gambling, ladies and gentlemen. You can take high risks and trade lots of money in one go but that can lead to a disaster. Don't expect 100% profit within your first year of trading! If you do make it to 100% then consider yourself the top money trader in the whole universe (including those aliens we mentioned in MISTAKE 3!!)

Try to look on a bright sight – even with slow profit of 50% you will be a millionaire in the next 10 years!!

MISTAKE 5: I don't need to use any money management techniques. I am one of those super-100%-profit-makers-in-the-first-year-of-trading traders!

WRONG! Without money management you can loose all your trading account balance within 10 forex trades!

WHY? Forex is a FAST market. Prices jump up and down within seconds. Money management can not only stop you from loosing everything but also helps you to profit in a geometrical progression. But, hey, if you really want to fail don't use any money management techniques at all. Rest assured that all of your money will be gone by the end of the day.

MISTAKE 6: I cannot be C average in forex trading!!! It's either all As or the "highway"!

WRONG! You don't need to get every trade to become a successful forex trader.

WHY? Forex trading environment is so much different from high school/university/work environment where getting 70% score is the end of the word for someone who wants to be number 1! Even below 70% is good enough in forex to bring you tones of cash!

So there you have it – 6 major mistakes that can turn your trading life to hell! Make sure to avoid them and you will be one of those super-100%-profit-makers!