Before you begin your trading career into Forex, there are a quite few pitfalls that you need to be aware of before you commence trading.This article will assist you to know what these most common mistakes are,thereby giving you a head start. It is written with tongue in cheek, but I am sure you will get the drift fairly quickly.
Firstly, make certain you DON’T have a forex trading system set up. By having a trading system in place, this will only increase the odds in your favour of achieving success and you would not want that to happen.
So make sure you don’t have a forex system in place and always trade based on a randomly set approach. It is a lot less of a hassle and headache free.
If by chance you have already created your system, then simply don’t follow it, be undisciplined as you can. For if you do follow your system, then there is a distinct possibility that you could profit from the Forex market based on the trading opportunities you will have found.
Plus you will then have an objective way to get in and out the market. When traders produce their trading systems they start to think objectively.
If you genuinely want to fail on your forex trading, make sure to be undisciplined.
Definitely don’t get educated. It is a waste of time. Besides it cuts into your trading time. and you can’t afford to be out of the market in case you miss something big.
Most successful traders are really well educated in the market. If you do by chance get educated, you might even gain the knowledge and experience you need to profit in the Forex market.
So don’t read up on the Forex market, definitely don’t enter into Forex training programs and don’t even bother to look at historical charts. They will only confuse you anyway. So what is the point of straining your eyes?
Don’t what ever you do employ any money management techniques. The function of money management is to avoid the risk of loss but at the same time it helps you boost your profits, allowing them to grow gradually.
By not using any money management techniques, there is a great possibility that by losing at least 10 trades in a row, you could be well on the way to emptying out your trading account. On the other hand, by employing basic money management techniques you can avoid making too many losses.
So make sure, if you want to fail, don’t even consider money management tactics. It is only money after all when all is said and done and you have plenty to spare don’t you?
And as for psychological issues.Why worry? Remember you need to get every trade to win don’t you? Why let emotions worry you,emotions wont affect your judgment or your trading habits or ability will they?
Successful traders know that they don’t need to win every trade in order to profit from the market. This is one factor that can be hard to comprehend and really apply. Why? Because we are taught, at a young age that any number below 70% is a bad number. In the Forex trading environment, this is just simply not true.
Don’t even attempt to look at applying a Risk-reward (RR) ratio bigger than 1-1. For if you do use a RR ratio of 1-2,(This means you are willing to make twice the amount you risked in one trade) then you only need a system that is right around 50% to make money.
If you use a RR ratio of 1-3 (willing to make three times the amount risked in one trade) then you will need to use a system that is right around 40% of the time to make money. So make sure to use a RR ratio below 1-1. It is a lot less to worry about and you don’t need the extra stress anyway and you don’t really need the extra money either.
So by applying every point outlined in this educational article, you can almost guarantee your failure in your Forex trading experience.
By doing exactly the opposite, you will have the possibility to achieve what every trader is trading for, and that is: consistent profitable results.
So when it all boils down to it, it is entirely up to you, the trader.
And lastly,would you believe that a hell of a lot of traders are trading without a trading plan or seeking education.
Are you one of them?
One thing that We highly recommend is that you start by paper trading before you start trading Forex for real. In our Forex Section you will find Forex trading systems specifically designed to assist you in trading Forex.
Also to assist you Asxnewbie also has arranged a FREE TRADING PLATFORM all you need to do to find out more is Click Here.
Chris Strudwick is a successful share trader on the Australian Stock Market Visit his weblogs at both http://www.asxnewbie.com AND http://www.aussie-retiree.com/ for more free articles and useful information about the stock market.