1. You don’t have a trading strategy.
The biggest mistake you can make while trading Forex is attempting to trade without a well-structured trading strategy. If you start trading without having a strategy to stick with from start to end, you open the door for obstacles that might prevent you from being profitable.
Trading without a plan can result in letting your emotions control your trading, cause you to make impulsive decisions and give in to your biases. The most common result is missing out on market breakouts and trend reversals.
2. You aren’t patient enough.
Patience is always an advantage. Patience while trading however, is crucial if you want to be a profitable trader.
Maintaining discipline and being patient while trading, especially during volatile market conditions is not for the faint-hearted, but they will certainly determine the fate of your trading account. Surely when it comes to your own money it’s hard to remain patient, especially during stormy markets which may result in significant changes on your account on short time periods.
If you fail to patiently stick to your trading strategy and close a losing trade out of fear in the spur of the moment instead of waiting for the trades to reach their initial goal you are putting yourself up for failure and will surely lose.
3. Failing to Adapt to the Market.
The Forex market is not static. It’s actually very far from it.
Because of this instability, you must develop your skills to recognize changes in market volatility, keep up with financial news releases and telling apart a market trend from a market change. Failing to adapt to the markets and updating your trading strategy accordingly will surely prevent you from being a profitable trader and will result in losses and frustration.
4. Your account balance is too low.
Most novice traders start with an account that is too small, in an attempt to “try it out” or “get to know the markets” without risking too much capital. Unfortunately, it’s nearly impossible to make any profits with a very small account, because risking too little per trade stops you from properly being invested in a trade and prevents you from profiting.
5. You don’t know what you’re doing.
If you want to be a profitable trader, you must first learn how to trade properly which means you need to establish a solid trading strategy that includes entry and exit points along with appropriate stop losses that are suitable for your account size.In addition, you must learn how to properly manage your money, have the discipline to stick to your plan, know how to analyze the market changes or trades, etc.
Without the sufficient knowledge on all these topics you cannot expect to be a profitable forex trader.
Overall, trading Forex is not for everyone. It takes a set of skills you must work hard on getting in order to avoid trading wrong.
From not having the discipline, patience or knowledge to formulate a trading strategy, to failing to adapt to the markets, all mistakes mentioned above can easily prevent you from being a profitable trader.
The good news is that now you can finally avoid all of these mistakes!
How? By copying the trades of professional traders which have already experienced these errors and learned how to master the markets.
DupliTrade’s copy trading platform enables you to automate your trading with our simple and intuitive platform. We display a selection of experienced strategy providers all of whom are trading their own accounts with real money. So, duplicating their trades guarantees you won’t make any of these mistakes as a trader. And the best thing is that you can start trading like a pro from day one!