Topic: What are some common mistakes that traders should avoid in forex trading?

[Farabi]

Most Common Mistakes by Newbie Traders When they start trading in the Forex markets, they make some common mistakes that they must avoid.

1. Trading based on intuition: The traders think that the markets are going in a particular direction, like an uptrend or a downtrend, so they trade according to their thinking. But they must understand that forex markets are unrelated to how we feel or think about them.

2. High Expectations: Whenever we are trading in the direction of a particular existing trend, we tend to have very high expectations, which, as a result, tend to delay the profits, and after some time, the profits that were available to us also vanish.

3. Uncontrolled Emotions: When we have a trade live in the markets, we tend to have some emotions that will affect our trading-based decisions and thus also affect our ability to perform well in any given trade.

4. Trading without Stop Loss: When we make our trades without using Stop Loss settings, the losses will tend to increase, which is also expected to drain our trading-based performance.

5. Trading against the Trend: Many times, we are trading against the main trend that is prevailing in the markets, and as a result, the losses will also start to mount for us. So we need to only trade with the major trends.

6. Short-Term Trading: It has been observed that the trading results are good only when we are doing medium- to long-term trades, and in the short-term range, the profits stay very low. We should focus on the larger time frames using the H1, H4, and D1 time frames.

7. Overtrading: When we get some profits from our trades, we are motivated to open newer trades, which may not result in profits. So, we will need to avoid doing any over-trading in the forex markets.

8. News Trading: We can see that the movements in the currency markets are very high during a news release, so we need to be careful and only do news trading if we know about it.

9. High Leverages: When we tend to do our trades using higher leverages, the income can be increased, but the losses will also happen, and we will need to control them.

10. Trading without a Plan: When we are doing any trade, we need to have a plan to know which currency pair we need to trade and also at what time. This will bring down the losses and also increase our profits.

[MelissaLiberson]

Traders mostly don't follow a money management system. Previously, I did not use this, but once I joined FreshForex Broker, my account manager told me to follow this, and when I did that, I started to do so continuously, so again, this is very important because most people don't usually follow it.