Forex mistakes and sins.

[chak148]

Stop Sabotaging Your Forex Trading

Forex Traders have a tendency to sabotage their own efforts in the market, and most of them don�t even know they are doing it. The inherent paradox of trading is that the harder you try to make money or avoid losses, the more these things tend to elude you. This is something that you probably have noticed or felt via your own frustration in making money in the markets.

Do you ever enter another trade immediately after a winner closes out, and then later realize you sort of just jumped into the market without your edge or strategy being present?

Do you ever consciously risk more than you know you should on a trade, and then regret it as the trade immediately goes against you?

Do you ever stop trading for a while after hitting a few losing trades just because you think if you �wait it out� your bad streak will end?

As humans, our biology tends to interfere with our trading much more than we think. It has been proven that people become less risk averse after a winning trade or a series of winning trades, and more risk averse after a losing trade or series of losing trades, even if they are following an effective trading strategy to the T. This is a BIG mistake; there is no logical reason to become less risk averse after a winning trade or more risk averse after a losing trade, because your previous trade does not determine the outcome of your next trade. Traders tend to ratchet up their risk amount after winning trades because they feel euphoric and over-confident and it�s these emotions that will soon lead them to give back all of their recent gains, and probably more.
Stop giving back all your winnings

I�m sure you�ve experienced a nice winning streak in the market, and you were getting excited that your account was growing. Then, probably faster than you made that money, it was gone, and maybe even more. You were left feeling confused, angry, and frustrated. Then the self-doubt sneaks in, the self-criticism, and you might feel like you are just not cut out to be a trader. Does this sound familiar??

I can assure you this is actually �normal�, most traders go through a similar situation at some point in their careers. The reason it�s �normal� to give back your winnings to the market, is because we are actually biologically wired to do so.

� It�s a fact of human biology that we become less risk averse after a series of winning trades.*

� It�s a fact of human biology that we become more risk averse after a series of losing trades.*

� In reality, you aren�t any more likely to win after a winning trade or lose after a losing trade, assuming you are strictly following your trading edge / trading plan.

� If you are strictly following your trading edge and trading like a sniper, you are only going to decrease your profit factor by reducing risk after a losing trade, and you are only going to open yourself up to larger losses if you increase risk after a winner. Because you are NOT more likely to hit another winning trade just because your previous trade was a winner, nor are you more likely to hit a losing trade just because your previous trade was a loser. This is due to the random distribution of winners and losers that exists for any given trading method.

So, the reason you�ve given back a lot or all of your winnings in the market, is that it�s natural for us to feel more euphoric and over-confident after we make some money in the markets. We then tend to forget a little more about the risk on any given trade and focus more on trying to turn our recent winnings into even more; essentially this is greed getting the best of you. Similarly, when we hit a string of losers we tend to cut down our risk more than we should, or we become afraid to enter valid trade setups all together. This is also emotion getting the best of you; it has nothing to do with logic or reality, because in reality you are not more likely to lose on your next trade just because your last one was a loser.

I can�t even tell you how many emails I get from traders saying something like they �built their trading account up a decent amount and now are below their initial starting value�; almost every trader goes through this at some point. You have to decide if you are going to recognize that you are doing something wrong and try to fix it, or stop trading all together. We are all inherently flawed as traders, just because we are human, but we have the gift of a very powerful and highly-evolved brain that can overcome these flaws if we make a conscious effort to do so.
Stop second-guessing your trades

Top traders are always confident in any trade they take, because they know what their edge is, and they don�t trade unless it�s present.

Thus, top traders don�t second guess their trades, whether a trade results in a winner or loser, they fully accept the outcome before it happens and they don�t enter unless they�re confident that it�s a valid instance of their edge.

You never know �for sure� what is going to happen even though at times it can seem like you do. This fact alone accounts for most problems that traders face. It has been said that money management and trading psychology are the most important aspects of successful trading. This is true, but it�s also true that one�s trading method heavily influences their trading psychology, so you need to be sure you aren�t also sabotaging yourself by using confusing and overly-complicated trading systems. These trading methods can certainly cause you to second guess yourself, since you aren�t really sure how to enter or you have to line up 10 different indicators to find an entry signal.

Having a clear and clean trading strategy like price action will go a long to help you remain clear-headed and objective, and this will help to prevent you from committing the trading mistakes we discussed previously. We have to do everything within our power to avoid sabotaging our own trading efforts by giving into the emotion-laced temptations that we face in the markets. Trading with an uncomplicated yet highly effective trading strategy like price action will help us to put the odds in our favor.

. Jab Bhi Forex trading mein humko loss hota hai uski Badi wajah se hi hoti hai ki hum log market Mein information Ke Bina kaam karte hain. Agar information ke sath Forex trading main kaam kiya jaye kabhi bhi last ka Samna nahi karna padta.

[jellybelly2017]

i think my bro many people make the mistake of buying a fixed amount of contracts and then adjusting their stop based on the risk they want to have there are some mistakes and sins that most traders generally do

[caribian]

I trade in Forex for more than a year I always make the same mistakes even though recently
I can overcome the mistake. My mistake is I do over trading and for this reason several times
I blow my Forex trading account. all traders should avoid trading on Forex.

[kades]

One of the best signs that a particular trade is a good candidate to hold and not be folded is to reaffirm price action.
For example, if your market is long and you get bullish pin bars or successive bullish pin bars that are formed in
the context of your uptrend trading you can be assured by this price action because it "agrees" with your trading direction.
This is essentially the opposite of the "opposite price action" rule we have discussed in the above points.
This re-price action can be a very good indicator that you have to hold a winning trade rather than folding it.
Learning to "read" price charts in this discretionary way really differentiates professionals from amateurs.

[interutup]

It is a very good thing to always review every trade, loss or profit. What we are looking for is
to identify the strengths and weaknesses underlying the decision to exchange them.
Really, not all your good trades have the perfect setup, nor does all your bad trades go wrong.
Therefore the review should not be biased. You may have a better insight into better trading your strategy

[Aliakbar2016]

jab be ham forex ma trade karty ha tu is ma hamary mistakes be zaroor hoty ha is liye in sab baton ko ignore kar ka kam karna chahiye kio ka ham us waqat tak achy trader nhi ban sakty ha jab tak ham loss or profit ko na samjay

[garlick]

The reasons why we tend to do things like risking more than we usually do after winning several trades
or putting too much of our risk after some losers, especially because it feels good. Most traders trade
further based on their feelings and emotions rather than logic and rationality. This is the reason
why most traders lose money. The only way to avoid self-sabotage in our trades is to have
a comprehensive forex trading plan and follow our trading plan and strategy with discipline and patience.

[khilmi]

I often make mistakes with impatience waiting for price movements to take profit and always choose
to wait without any action to overcome those losses. But I am aware that as a novice trader,
of course, I have not had much experience ... good luck.

[Akhterp]

over trading insan ko kabhi nahio karni chahiye kyun kay over trading bhi insan ko loss main lay jati hai is liye ap try karne eak to over trading na karen aor greed na karen kabhi bhi kyun k main nay khud yeh experience kiya hai kay forex main greed karney walon ko kuch hasil nahi hota,

[sapolang]

Most of the time traders try to trade in the forex market without stop loss, this is one of the
bad things traders do if they avoid such mistakes so they can easily benefit from their trades
so try to learn from past mistakes. .