FOREX: Every day that passes there are a large number of new traders who are trying to get money in foreign exchange transactions. Everyone understands the reality of income, but not everyone follows the rules, allowing a win.
It is necessary to address the most common mistakes novice traders do not have obstacles to win and maintain balance at the initial level.
The first error can safely be called the inability to contain his feelings. Trading requires a fine calculation, and newcomers sometimes forget it, guided only by their emotions and feelings. Many of them are out of balance: newcomers want to increase profits or stop the decline of their investment, so they make a hasty and reckless treatment.
The second error is a misperception. Forex is not a game, work is real. The market is based on financial transactions, so to work on it must be treated very seriously. When a merchant accepts a job in the stock market as a game, it is very likely to lose, after being under the influence of passion, emotion. Stop monitor transactions.
To be a successful trader only has to know at least the basics of modern commerce. A common mistake made by many beginners is the belief that you can work on the currency market, not rely on market forces, but on their own hunches. This is too bad because even experienced traders do not always predict correctly changes in exchange rates. Not to mention newcomers who do not fully understand the principle of negotiation. Before opening a position, any trader must be 100% sure of the benefits of the transaction. If there is no trust, it is best to wait with that transaction. After all, uncertainty often has a negative impact on capital.
Often you can see new Forex participants, who make the mistake in the transaction, against price changes. Many of them believe that the value of shares or currency soon change direction, increase or decrease. The source of this information is only your own intuition.
His strategy: The right choice of strategy – the key to successful transactions. The rookie mistake is too intricate and dangerous tactic that threatens the entire deposit. Often they try to earn as much as possible and faster and quickly end up burning capital.
Many novice traders want to get results as quickly as possible, so they often use intra-day trade. This approach is also wrong. Transactions of this type require extensive experience and deep market analysis. Therefore, players even experienced rarely use. For the beginner, it is better to make long-term deals that are easier to predict.
When you are doing business it is better to trust in yourself and your mind. Sometimes the words of analysts, experts and indicators make the player to change his opinion, to play despite his calculations. Among the newcomers are often based solely on the opinions of others. This approach is not correct, because no one can accurately predict market direction, or at least do it often enough that you can trust. Practice shows that only half of the forecasts come true.
Trade is of great importance and size of deposit margins. The fact that transactions that require more than 30% of total capital, is very risky. According to the quoted errors can be attributed to violations of the simplest rules of exchange. However, often allow newcomers. Therefore it is recommended to carefully analyze their trade, to find and recognize their own mistakes.
In sad words statistically, only 2% of the players retain their capital. The vast majority of newcomers join the trade losers without examining the concepts of starting operations.
Of course, the main reason for the losses of the newcomers is the lack of experience and lack of willingness to receive it. To become a competent player it is necessary to carefully analyze the market, the direction of trade, responsible approach to each transaction. Beginners often are guided only by intuition.
Here is a list of the most common errors:
Abandonment of the game with a demo account. Most players believe that just put their money in trade, not used to the trading platform and its functionality. To do this, in any case, is impossible. It’s like driving a car without knowing.
The desire to get rich quick. Certainly, it carries a risk strategy of making deals. And this, in turn, becomes for inexperienced players lose their own money. Often fails, the operator attempts to strike back immediately. Making hasty decisions only leads to mistakes and ruin.
Wrong choice of broker. Beginners often reach the deceptions of fraudulent companies that make money with confidence player. Therefore, before choosing a broker should carefully examine all classifications, see reviews, analyze the first days of trading. Check best broker reviews
Inability to control emotions. Too much emotion is the worst enemy of the trader. It implies instability. Often, a player does not expect the most favorable moment for the transaction, opens it at random, which is fundamentally wrong. Moreover, emotional man is strongly influenced by fluctuations in the tank. Because of this, it may deviate from the planned strategy.