3 Mistakes All New Forex Traders Need To Avoid
What is overtrading and why is it bad?
Overtrading is continuing to trade throughout the day, which leads to poor judgements and the chasing of pips and losses. Because of you overtrading your trades become emotional rather than logical.
All rookie traders appear to have this underlying ability to overtrade. This mostly comes down to experience but there are a couple of steps which you can take to avoid following this path.
Set yourself a target
Targets allow you move stop losses and continue to analyse the markets so you will then become profitable.
Move your stop loss
If you become profitable in which your trade has collected 20 positive PIPs you should be moving your stop loss to your opening value. Worse case scenario you breakeven on the trade. By doing this simple movement will save you a lot of money in lost PIPs.
Win or Lose Step Away
Now this is were discipline needs to kick in. Whether you win or lose you need to know to step away from the charts. Stopping yourself from trading good because the majority of new traders end up losing, which leads to them saying “Forex is a scam”. With experience you will find that you are able to control this more and logic starts to show you potential trades.
Most brokers allow you to have demo accounts in which you set the value of your account.
This value SHOULD be the value you are going to open your real account with.
If you can only afford to open a trading account with $50, your demo account should only have $50 at open.
This allows you to learn the value of not over leveraging your account.
Blowing $50 on demo is far better than blowing $50 in a real account.
Start trading as you mean to trade for real.
The truth is there are so many people in which you can follow in and around the Forex and Crypto markets, because of this people have stopped listening and following the right people.
A couple of things which you need to consider is that all traders go through ups and downs of trading and they have different strategies.
That is why you need multiple experts to be able to follow and find the strategies that work best for you, especially when you are just starting out.
By adding the practice on realistic trade accounts you will be able to find the best experts for yourself quickly.
This will allow to trade my efficiently and be more consistent with your trades.