Here are 6 mistakes the losing majority of new Forex traders make and make anyone of them and you will lose, here they are...

1. Trusting a Forex Expert Advisor

Its all very tempting, just plug in a software program you paid $100 or so for and get an income for life but the reality is losses. Most of these systems have never even been traded real time and there track records are just back tests, so there made up knowing the closing prices. These systems all get turned to dust in the markets, as you don't have the closing price in advance when you trade in the real world.

If life was as easy as paying $100 and getting an income for life, everyone would be trading and no one would be working and of course this hasn't and never will happen.

2. Thinking Forex Day Trading and Scalping Is Good Way to Trade

If you want to lose your money quickly, Forex day trading and scalping are simply two of the best ways to do it. Lets look at task, trying to predict what millions and millions of traders may do, in hours or minutes - its impossible! A look at any daily trading range, shows you volatility can and does go anywhere, support and resistance are not valid and losses are the result.

Of course there are lots of traders who tell you these short term methods work and sell systems but just like the Expert Advisors above, they only have simulations going backwards.

3. Trying to Predict in Advance

The next losing way to trade predicting where prices may go in advance. Lots of people tell you that it's possible but prediction is a guess and will be as accurate as your horoscope. Forget prediction, trade the truth on a Forex chart of the reality of price change and leave prediction to the losing majority.

4. Trading Breaking News

We have more and better news than ever and it's all so convincing - but all you have is a story which reflects the crowd psychology and as the crowd always loses, it's not a smart way to trade.

5. Working to Hard and Trying to Complicate a Method

Complicated methods, being clever and effort count for a lot in real life but in Forex markets count for nothing. You don't get rewarded for these traits, you get rewarded for being right. What most traders fail to realize is learning the basics of currency trading is easy and anyone can do it - what separates winners from losers is mindset.

The key to winning in the market is the discipline to execute your plan, trade through losing periods and keep losses small until you hit a home run.

6. Over Leveraging

Today you can get brokers to give you 400:1 leverage or more and traders think their being generous but I have a theory - Most brokers are market makers so when you lose they put your money in their pocket. By giving so much leverage, they know the trader will blow himself out the water and they get the cash.

Well maybe brokers don't think that way! But over leverage kills more account than any other reason and 10:1 is plenty for most traders.

Work Smart and Win

If you get the right Forex education, avoid the above mistakes, get a simple system you can apply with discipline then, you can achieve currency trading success!