The Most Common Mistakes Forex Trader Do

A very common mistake amongst newbie and experienced forex traders alike, have a common flaw in using forex trading indicators. The use of indicators can help alright but populating your graph with more indicators than you need holds its own risks. Using these forex trading indicators blindly without paying heed to what you see can be detrimental. Some forex traders do not understand that there are indicators that follow a trend and those that predicts the trend, so what ends up happening is for instance they use a trend predicting indicator and without waiting for confirmation the jump in. As a result of this the trader finds himself either too late or too early and end up on the losing side. Keep your use of indicators simple and do not fill your chart with every single indicator provided.

A second mistake made by most forex traders is starting their trading account with the minimum account required. By depositing the minimum account into your trading account, you are already at a disadvantage for the following reasons:

• Your account might be too little to withstand the normal market fluctuations. 
• You will find yourself trading with fear. 
• You will have problems adopting a suitable money management procedure. 
• You will be an emotional wreck.

So, personally it is advised that you continue to demo trade while you build your initial capital. Don't be in a hurry to start trading as you will simply hurry out of forex trading.

The third mistake is that most forex traders find themselves getting too hooked on winning that they find themselves unable to accept loss. As a trader you must teach yourself to accept a reasonable loss and move on to the next trade without chasing your loss. Chasing a losing trade is a mistake you will find often in most forex traders. Do not be careless but at the same time don't be too scared to lose, because you must lose some trades. But the ability to win more trades than you lose is what puts you in a profitable position.

The final mistake I will mention here is inadequate knowledge. Most forex traders "put the cart before the horse" meaning they start thinking of making profit instead of getting the required education to enable them trade. Forex trading can be as easy or as difficult as you want it to be.