There is a lot about said about traders not keeping their losses small, but a far bigger reason for losses is their failure to run profits. Traders get excited when they get a profit and the bigger it gets the more tempted they are to take it. Of course a few dips in their open equity, sees them snatch it - then what happens?

It turns into a mega trend and goes the way they thought and their not in - this happens all the time. You need to have confidence and conviction to accept huge gains.

10. Over leveraging and Stops to Close

Sure you can get 400:1 leverage and trades use it and place stops within normally volatility. I often hear people talk about using a 30 pip stop! Well you may as well flip a coin; market volatility will kill your equity.

You need to de leverage and give a s top that's logical

Finally - Answer this question Before You Trade:

If you understand you mustn't make the above mistakes there is one more question to consider before you trade ask yourself this:

What's your trading edge?

In other words why should you win when the vast majority of traders fail? The edge you have must be logical and you must have confidence in it, to beat the majority of losers. If you don't know what it is you don't have one and its back to your forex education.

Forex can give you a life changing income if you work smart, avoid the mistakes above, get a simple currency trading system and apply it with discipline and you will soon be enjoying currency trading success.

Page 2 of 2 :: First | Last :: Prev | 1 2 | Next