Every trader is a human being and human being has a nature that he makes mistakes right. It’s ok but it’s not ok when it is Forex day-trading, so attention please. Always try to learn from mistakes because a successful person has the tendency to learn from their mistakes. A small mistake can turn into a big loss for you. The most common errors that day traders often conduct while trading are summed-up below.
Emotional trading: Most of the traders make this big mistake of trading with emotions like greed and fear. Greed, yes greed of earning more and more in the hope of earning more traders forget to trade using stop limits and looses more money. Fear, yes fear of loosing more traders they forget to consider all the fundamental indicators and lot size before buying or selling and at last looses money.
Lack of Rational Trading Approach: Some traders do not consider the technical and fundamental indicators and the existing trending patterns of the Forex markets just enter into the market and start making positions by listening to other traders response or brokers suggestion. This is not at all a rational trading behavior of a trader. It’s a real Forex market and requires lot of planning before actually start trading.
Loss of dear money: Some traders put the money that are set aside for spending on their basic needs that is not affordable to loose at all. It is always suggested not to trade with the money that is to be used for other expenditures.
At the end, day trading is a great trading style to earn returns and a good living but try to avoid mistakes by trading attentively and through good Forex trading platforms.
The article explains about the mistakes that traders do while trading in the Forex market. This gives an insight into the common mistakes that are very common in day trading.
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