Top Forex trading mistakes to avoid

The Forex trading market is so big there’s room for both experienced people and beginners who have got no previous contact with the stock market, which makes it so great. While there is no room for unrealistic expectations here, if you start small and slowly work your way to the top you might get Forex to become the main source of your income. One curios thing about most Forex traders is that no matter how experienced they are in the business, they tend to make the same mistakes. To help you learn how to swim with the sharks and resist the tempting but potentially dangerous offers, we asked a couple of experts for help. They gave us a list of top mistakes people make when trading, and if you want to learn from other peoples’ experience and get the best out of it, make sure you don’t follow their footsteps.

Mistake number one – too much leverage

This basically means that you have a small account balance but decide to make a big trade. It might sound like a great plan to get a large sum of money fast, but if the plan backfires it can get you exactly the opposite and leave you broke. Even small currency fluctuations could cause you big losses, so it’s better not to trade on the margin and stop using too much leverage.

Mistake number two – wasting money on systems

From day one you start your Forex career, you’ll notice that there are tons of offers like systems that guarantee they will triple your every investment, advice on trades and other scams that will just make you give money for nothing. If there were such a thing as a system that works, don’t you think people would hear about it by now? Don’t fall for these baits and avoid anything that claims to get you a lot of money with a little effort. The only way to make it on the Forex market is to take baby steps and carefully plan your next move instead of falling for these easy money scams.

Mistake number three – trying to pick tops and bottoms

This is the most logical strategy for almost every new Forex trader which also proved to be one of the worst. The idea behind it is simple – you try to follow a currency and predict the moment when it will start moving in the opposite direction, thus finding currency tops and bottoms. The currency market is so volatile it’s tricky even for the biggest trade experts to predict tops and bottoms, so don’t waste your time trying to do the impossible.

Mistake number four –  forcing over trading

Another very common mistake in new traders is over trading Desperate to make cash, newbies will often force trading even when there aren’t any really good opportunities instead of just waiting for the right moment to come along. This can leave you with big losses, so learn to be patient and wait for the right thing.

Learn about Forex and quickly take your place at it

A lot of people still don’t know a whole lot about Forex trading. A lot of them have even started to believe some of the bad rumors that are surrounding this type of market and are now utterly refusing to have anything to do with it. They view Forex [...] Continue Reading…

All you need to know about Forex before starting out

You’ve probably heard about Forex as a great way to make money online without needing to have experience in the stock market or knowledge about it. While this large market gives you a chance to make it big and earn serious money through smart investments, there are still some [...] Continue Reading…

Learn as much as possible about Forex before trading

If you have heard lots of stories about Forex and how much money you can make by trading, we have to tell you that it is all true, but that doesn’t mean that everyone can do it. It is definitely not east to trade on Forex. First of all, [...] Continue Reading…

ForEx trading essentials

ForEx exchange is a bit different than other financial markets. It operates foreign currencies and it can be done from home which makes things much easier. You don’t need to go to the stock exchange or to make detailed market research. Basically, it is enough to have some good [...] Continue Reading…

ForEx – just gambling or something more?

Forex is still a relative novelty among common people who have only recently become able to trade in this financial market. And whenever something that big becomes available to such a large number of people, controversies and debates are sure to follow in suite. Just trying to list all [...] Continue Reading…

First steps into ForEx trading

ForEx is the latest of the big financial markets to become available to the average person. It has been a long time since ordinary people started investing in stocks and other types of financial market, but it was necessary for everyone to have a 24/7 internet connection before ForEx [...] Continue Reading…

Forex FAQ

If you are not new to this blogsite and if you took the time to read our other articles, then you are probably already aware of the fact that we are all about ForEx trading and that it is our wish to share the knowledge with the common people [...] Continue Reading…

Find a good and reliable FOREX broker

What is FOREX? FOREX (Foreign Exchange Market) is a type of exchange for the global trading of worldwide currencies. It is becoming very popular and you can thank several things for that fact. This article will give you a few extra tips on trading on FOREX market.

One of the [...] Continue Reading…

Forex Participants

Forex is short for foreign exchange and it is a market where different currencies are exchanged. It is also divided into different levels that can be accessed by different people. Interbank market is the top level and those who can access it are usually commercial banks and the largest [...] Continue Reading…