3 Deadly Mistakes Which Will Destroy Your Equity

By: Kelly Price

I have been teaching forex trading for around 20 years and there are 3 forex trading mistakes which I see traders make time and time again and wipe themselves out. If you make any of these mistakes you will lose...

1. Learning The Wrong Information

Traders continue to try and trade with logic which doesn't work and fall victim to myths and marketing companies providing miss information. Here are some of the most common mistakes

Trying Forex Scalping or Day Trading.

Simply one of the dumbest forms of trading you can attempt. It's pretty obvious you cannot predict what millions of forex traders will do in a few hours, so don't try.

Predicting Markets in Advance

This is just another word for hoping and guessing and you won't get rewarded for that in life, or forex trading. Trade the reality of price or your predictions will be as accurate as your horoscope.

Following Experts or News Stories

Prices don't move on the above in isolation and although there good stories, that's all they are. Prices move on investor perception of the facts not the facts themselves.

Following Forex Robots

Good idea in theory but most of the ones you see for sale, don't have track records, just paper back tested simulations of profits. If they made as much as the vendors claim, the vendor wouldn't sell it to you for a few hundred bucks.

2. Not Appreciating the Skills Needed to Win

The skills you need in forex markets are totally different to those you need in any other occupation.

You need to realize this and prepare yourself to have a totally different mindset. Here are some problems that most traders cannot overcome

Working Hard Wont Help You

In most jobs the more effort you put in, the more you get out but not in forex trading. You get rewarded for being right with your trading signal and that's it and the time it took is immaterial, your judged on results.

Being Clever Wont Help You

How many traders have I seen who are clever and think they deserve success? Loads and they all lose.
Try and be to complicated in forex trading and you will lose, because simple systems work best and always will, as they are more robust with fewer elements to break.

Running with the Pack

Most traders cannot detach themselves from the herd and in society that's good - but in forex trading the pack lose and you must isolate yourself from majority opinion and its very hard to do trading signals when no other traders agree with you and the news is talking the market the other way!

You Have to Look Stupid to Win

You compete in an arena where only you can be wrong and the market is always right.

You are going to be wrong a lot of the time and the market is going to make you look stupid and forget all the nonsense you read about having 90% accurate trading and no drawdown and get prepared for weeks of losses.

Fact is you need to accept these losses to win and stick with your plan.

Most traders want to be perfect and win all the time and that's not the world of forex. You need to keep your eye on the long term profits you can make but accept short term drawdown.

3. Failures in Discipline

The previous two mistakes lead to this one. You have heard how important it is and you wont win unless you can execute your forex trading system with discipline - if you don't, you don't have a system in the first place!

Being disciplined means learning the right forex education and having total confidence in your method. From confidence, you will get discipline and this means you can stick with your plan, though periods of losses and achieve long term currency trading success.

Trading forex is not easy and you wouldn't expect it to be with the rewards on offer - but get the right education, avoid the above mistakes, get the right mindset and you can succeed and earn a lot of money.

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