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5 Common Beginner Mistakes

Discussion in 'Forex Discussions' started by painofhell, Mar 4, 2016.

  1. painofhell

    painofhell Content Contributor

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    5 Beginner Forex Traders Common Mistakes.

    All novice Forex traders tend to commit a few common mistakes and harbor similar delusions about trading in the online Forex market. Following are some of the most common ones.

    Lack of Proper Money Management.
    Probably the biggest mistake of Forex traders. They are not managing their money. Thus increasing the risks and losing out on profits. Forex traders should always follow a proper money management strategy. That way they can limit the risks and maximize their earnings. Applying a good and proper money management system is critical. Sometimes even more important than choosing a winning trading strategy. It has more influence then using accurate entry and exit points for your position.

    Trading Without a Specific Method. The dumbest thing forex traders do is not following a particular trading system. You don’t need to guess market movements. Forex traders have the privilege of developing a specific trading method by choosing proper analytical tools. Experienced traders use many trading tools. They use charts, trading signals, technical indicators, and economic news. That way they can easily identify trends and entry and exit levels. Using an OK method is better than not using at all. Using a good trading method is much better.

    Expecting Too Much Too Quickly. Although forex traders may get high returns, it’s certainly difficult to do so without taking high risks. A forex trader must not expect too much too soon. He should manage his risks in order to have a better chance of being successful over time. It’s a long distance race. Not a sprint. Be realistic and put yourself long term goals. Then, divide it to short term targets.

    The Analysis Confusion. Big confusion. There is a virtually unlimited number of forex websites that offer trading tools. They offer trend analysis, systems and software. Some of them are good, some not. Some offer some “magical solutions”. Those can confuse and distract a trader. One must choose a particular set of tools and systems. Then, to be focused and utilize them properly.

    Making Trades Impatiently. A very common mistake. Impatience is another trait that can cost forex traders in the beginning. The excitement of trading can lead to many mistakes. Hence traders should always look forward to gain experience while starting instead of being impatient. Eventually being patience pays. Do it.

    The best way for you to avoid these mistakes is to take time to educate yourself properly. Only once you have the experience and knowledge, you are ready to start live trading. So take your and avoid these mistakes. By doing so, you will put yourself in a much better starting position. Good luck!.
     
  2. Sharon Higgins

    Sharon Higgins New Member

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    I think lack of education is the root of all problems, if we have that in place then we can easily work out things, if we are not having enough education than we will always be greedy and end up throwing everything. I am lucky enough to work with top class broker like OctaFX, it is a really rocking company with having ideal benefits which includes the 50% bonus on deposit offer, it is also use able which allows one to work well with complete comfort while the risk factor is also in dipping mode due to such massive addition in terms of capital, It also helps me be much more patient knowing that I can work out things nicely.
     
  3. Blossom

    Blossom New Member

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    Good stuff... I agree with you. I have done all this mistake. I know one mistake which is common, DO not let the profit run and take few pips.
     
  4. AwaberA

    AwaberA New Member

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    One of the common mistake is ignoring of no deposit bonuses and investing traders' own money. I'd rather use bonus money first. For example, FreshForex is offering $1000 no deposit bonus at the momen. So why not using it?
     
  5. Blossom

    Blossom New Member

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    Right awabera, using bonus instead of our money is better idea for newbie.
     
  6. Sharon Higgins

    Sharon Higgins New Member

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    Blossom, I believe you’re still to understand that time is real money and if you waste time on no deposit bonus like mention above then seriously good luck to you! That bonus is more of a welcome bonus then no deposit bonus due to the conditions while what you expect to learn from 7 days? I can’t learn much about from trying my luck like it’s last day on earth. I better off with demo contest like I am currently participating with OctaFX broker especially their Southampton Supreme demo contest which is just 90 minutes contest happening every Monday while there are also unlimited prizes to be won for us making it even better and this is where you can spend your time and it can be worthy at the end.
     
  7. Blossom

    Blossom New Member

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    I just mention that it is good for newbie so that they can start and learn how Forex, without investing own money. I have done this so i am clearly sure about bonus and stuff.
     
  8. Sharon Higgins

    Sharon Higgins New Member

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    Actually yes, I think you said it right, but I just felt that now days brokers are playing with traders with offering huge bonuses, but after doing all the hard work, we realize that we’re never able to withdraw the profit made, so that’s why I feel it’s time waste to use bonuses from such companies. I have used bonuses in past, but now I find demo contest far better especially Southampton Supreme with OctaFX broker, it’s just 90 minutes contest happening every week on Monday, it helps so much to learn without investment, but difference is we can win great prizes and this is definitely far better than any of the no deposit bonuses we can find from any broker.
     
  9. Blossom

    Blossom New Member

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    Right, now a days each brokers is just gambling. It is hard to find right one for self in Forex market.
     
  10. Sharon Higgins

    Sharon Higgins New Member

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    I am sure you meant by traders not brokers. If that so then you’re absolutely right. It’s so sad that people prefer short cuts and always end up at wrong side of the table; I think the biggest reason is they never understand the potential of Forex trading where even with low risk and controlled trading can lead into healthy profits. It will never be understood till we skip learning or feel bored with demo account, so I always suggest people to try demo with low amount and then see how much you can make even with that. I haven’t used demo for long time since I prefer demo contest by OctaFX and it helps in every way possible to think of.
     
  11. sininfinity

    sininfinity Active Member

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    Agree with you and that is why when I see someone is asking for a broker, I suggest them to try them out and see if it is suitable for them or not. Others can only recommend but can't choose a broker for them.
     
  12. Blossom

    Blossom New Member

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    I am also including brokers with my statement, few brokers are also scammers. Traders have there own way, if one is loosing his money with short cuts we can stop them. But we need to stop those scam brokers who are scamming with new traders.
     
  13. jologs

    jologs New Member

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    5 most common mistakes

    1. overtrading
    2. haste/rush
    3. greeed it never ends
    4. never sticking to the plan
    5. NO SL or TP
     
  14. Sharon Higgins

    Sharon Higgins New Member

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    Jologs, I will tell you about 1 solution for all these common mistakes to be avoid, it’s education and experience, if you’re having good level of education and also experience then you will never do over-trading, rush or be greedy since even if you’re greedy, it’s no longer greed but it will be ambition, but of course, if you’re lacking above mention things then you will continue with making such mistakes, so that’s why it’s your decision to make. I learned the importance of education thanks to OctaFX broker for their epic educational setup that shows us the true value of it and also allows us to participate on their demo contest which helps us execute whatever we have learned rightly.
     
  15. jologs

    jologs New Member

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    yeah these are some mistakes i had to go through 5 years ago, and only if newbies understood how lucky they are that there are people like us sharing past mistakes for them to actually avoid, its kinda sad when we see posts of people ranting about loses when the mistakes committed have been said a thousand times before LOL but yeah just like forex we continue to strive and learn from mistakes due to experience and time.. cheers
     
  16. Blossom

    Blossom New Member

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    Every one learns with experience, the learning knowledge is more important then any book guidance. I always learn from my mistakes so that i can not re-create the same mistakes again in Forex market.
     
  17. Sharon Higgins

    Sharon Higgins New Member

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    I think making mistakes is no big deal, we all will do that and there is no way to stop it no matter how much practice we do, but what’s more important is learning from it and make sure one mistake is not repeated again and for this we need to have good strategies and plans that we should follow and only then we will be able to perform nicely. I trade with OctaFX company where they have outstanding benefits with small spreads from 0.2 pips to high leverage up to 1.500 while there is also incredible rebate service that gives back 50% even on losing trades, so that’s why it’s ever so useful and helps up with trading nicely to be able to succeed.
     
  18. tiptip

    tiptip New Member

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    very true education is really the key, and about OctaFX ideal benefits! i personally haven't had a nice experience trading with them this broker is totally scam for profitable traders. There are no issue with money withdrawals
     
  19. Sharon Higgins

    Sharon Higgins New Member

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    To be honest, I am confused with what you said. First you mention that you found this not good, but then you said there are no issues with money withdrawal, so what you exactly mean? Also, I like to know your clear view with what you mention scam for profitable traders? What do you mean by that? Have you personally seen anyone getting scam or showing you the proof? Also, I like to know did you lost anything or had negative experience with OctaFX? I believe often people comment without thinking much. I have been with them for past 3 years and have made over 10-15k profits and withdrawn it successfully (instantly) so far, it’s basically 10-15 times to my initial investment, so what else do you call profitable?
     
  20. AwaberA

    AwaberA New Member

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    I bet it is! Avoiding of loosing newbie's money is the main idea of it. I think it's much better to use bonus money when you just started and still learning. For example, my broker is offering $1000 no deposit bonus to the new clients. Trading with $1000 bonus money obviously can multiple their chances to make profit.
     
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