Forex mistakes and sins.

[youngfx]

9) Use your brain wisely

You’re not a caveman, it’s 2012, there is no excuse in today’s world not to read, not to be educated and not to make a real effort, LAZY won’t work. Too many traders want to buy a trading system or attend a trading seminar and magically start printing Benjamins from their computers. Unfortunately, this is not how it works. Trading takes time and effort to learn, and you have to use the large mushy area between your ears to become good at it. Many traders never invest in an effective trading education or take the time to learn and really develop their trading skills; instead they just jump in the markets with little to no formal trading and start throwing around their hard-earned money. There’s so much information at your fingertips these days, there’s no reason not to put in the time to learn how to trade effectively.
10) Ditch the fundamentals and news

I know that a lot of you guys spend hours reading economic news, reading forums over on forex factory, or whatever else. The truth is, you are wasting your time. You really are; you need to just accept the simple fact that all fundamentals and forex news variables are reflected via the pure price action on your charts. I’m not going to say too much about this topic in today’s lesson because I have discussed it in other lessons quite a bit, and there’s really no better way to sum it up except to say that every single piece of economic news and all things that affect a market are visible and reflected in that market’s price action. So, if you learn to read the price action you also learn to read the fundamentals.
11) Trust your gut, not another’s

When it comes to trading, trusting your gut is something you’re going to have to learn to do. Unfortunately, there’s no mechanical trading system out there that will stay effective over changing market conditions. Despite what you read on some trading websites, you need to use your brain, your eyes, and your gut instinct when trading the markets. Your intuition and gut trading feel are things that can be harnessed and improved upon if you develop them by learning a strategy like price action.

Turn off the TV, stop reading the business section in newspapers, and don’t listen to the opinions of others, instead learn to listen to yourself. A good gut trading feel will only come from experience and confidence, so you first need to really master a trading strategy like price action and then practice trading with it on demo. Once you do this for a while you will begin to develop your gut trading instinct and to get a feel for a price action strategy worth trading versus one that’s not, etc. Ultimately, you are the one pulling the trigger on your trades, so you need to trust yourself and not confusing yourself by listening to other people and taking in too many outside opinions. All you really need is a sound knowledge of price action trading, your brain, and the charts.
12) Keep your day job, and work hard at it

Don’t set out to be a professional trader from day 1, instead, your first goal should be to gain experience and knowledge and become a good trader, then once you’re making consistent money in the markets you could quit your job if you want to. Most traders go about this with the wrong mindset, they think they are going to quit their job after a month of trading and they might even start slacking off at work as a result. This is the wrong attitude to have and the wrong thing to do; you really need to already be financially sound and relatively happy with your life before you start trading with real money. Many traders look to the markets as a way to solve all their problems, when in reality the markets are not there for this. They are for mentally sound people to potentially profit from, so if you are trading the markets just because you hate your job or you “want to be a millionaire”, you probably have the wrong forex trading mindset already.
13) Be organized and clean (hygienically too)

I am a very organized and clean person, and I firmly believe this has contributed to my success at such a young age. Without trying to sound arrogant or cocky, many people simply don’t have the motivation to maintain an organized and clean lifestyle, and I think it’s very hard to be a consistently profitable trader if you live this way. Everything from having the files and content organized on your computer to having a clean and organized place to trade is important to your overall trading mindset. One of the reasons why many people fail at trading is because they aren’t organized and disciplined, trading seems easy on the surface, but if you aren’t exited about developing positive habits and about being patient and disciplined, you’re probably not going to make it as a trader.
14) Don’t be stupid

A lot of traders simply act like fools in the markets. They shuffle around their charts like lost souls desperately in need of a trading signal, panicking if they don’t find one and ultimately entering the market anyways. Biting off more risk than you can chew and generally behaving like gambler in the markets is not the way to make money, in fact it’s simply stupid, to put it frankly. You need to think like a businessman or woman and act accordingly, that means managing risk and having a plan.
15) Learn to love patience

For many people, patience brings up images of boredom and things they would rather not do. However, in trading, you need patience more so than in most other professions. You need to have patience to sit on your hands when your trading edge is not present, and you need to have patience to see your trading edge play out over a large series of trades, rather than getting emotional after hitting a few losers. Indeed, if there is one “key” ingredient to success as a trader, it would definitely be patience.

Trading seems to naturally tempt peoples’ ability to be patient, and the more you can maintain your patience by waiting for valid instances of your trading edge, the better you will do. As humans, we have not been wired by evolution to be patient in most situations; when we are hungry we need to eat now, etc. So, as traders, we need to override these “caveman” urges which cause us to over-trade and risk too much, by planning ahead and not becoming emotional as we trade.

[youngfx]

5) Stop trading if you’re frustrated or confused

If you’re frustrated with your trading results or confused about your trading strategy, it’s best to simply take some time off from trading. This simple exercise can work wonders on your mindset and will restore passion and motivation into your trading routine. Clearing the markets from your mind for a while is sometimes the best thing you can do to improve your trading. Especially, if you just suffered through a series of emotion-fueled losing trades, you need to take some time off from real money trading to regroup and collect yourself.

Even if you are just feeling a little frazzled one day in the midst of a successful run in the markets, it’s still better to just stop for the day and come back the next day after a good night’s rest. It’s very easy to get caught up over-analyzing and falling victim to the temptations of the market, without even noticing. If you find you’ve been at your computer for an hour or two just analyzing the markets and trying to find a trade, you’re probably better off removing yourself from the markets for a while. Finding your trading edge in the market should be a relatively quick and easy task after you have mastered trading your edge. It should be readily apparent if your edge is present in the markets after just 15 or 20 minutes of browsing. So, when in doubt, walk away from the markets until the next day or however long you need to calm down.
6) Trade less than you are now, much less

I talk a lot about over-trading, and for good reason, but I won’t get into it too much in today’s lesson, except to say that most traders trade way too much. I get a lot of emails from traders asking me things like “How many trades can I expect per week”, etc; when in reality it really doesn’t matter. Traders should be far more focused on quality of trades rather than quantity of trades, as you can make a good return each month with only 1 or 2 big winners.

It’s OK if you don’t trade for a week, you need to understand that. Many traders feel like they need to be in a trade all the time or they are “missing out” on an opportunity. Well, the truth is that just because the market is sitting there and easy to access, it doesn’t mean it’s an opportunity to make money. In fact, you should think about the market as a way to both lose and make money, this will help you to avoid jumping in the markets when your edge isn’t present. There’s only an opportunity when your trading edge is present, if you trade when your edge is not present you are simply gambling. It’s a proven fact that high frequency trading is less profitable over the long-run than lower frequency trading. Traders who take a swing-trading approach where they are holding positions for 3 or 4 days or a week on average, tend to keep themselves in business as traders, whereas day traders keep the brokers in business with all the spreads and commissions they generate for them. Unfortunately, day traders and short-term scalpers often up putting themselves out of the trading business simply because they are gambling, not trading.
7) Stop thinking so much and so hard, it’s bad for you

Whereas thinking and brainstorming are generally good things in almost every other profession in the world, in trading they can actually be counter-productive. The reason being is that often it’s best to just not do anything in the markets. Whether that means not entering a trade you know isn’t quite meeting your trading plan guidelines, or not interfering with a live trade, traders do a lot of damage to their trading accounts by thinking too much about what they should do next.

Don’t get me wrong here, I’m not telling you that you don’t have to think at all to be a good trader. What I’m saying is that most traders think more than they need to, there’s a big difference. Obviously, you need to think to become a successful trader. But, once you determine exactly what your trading edge is and you know how best to trade it, there isn’t a whole lot more to think about. After you know how to trade your edge, it really just comes down to scanning the markets quickly each day to see if your edge is there and then either trading your edge or walking away. This type of approach is best implemented as an end of day trading strategy; however you can also use it on the intra-day charts.

Also, don’t over-think your trades once they are live. The “default” trade management strategy that I use is to “set and forget” my trades, then I will check in on them periodically and if there’s any obvious price action showing me that the market bias is changing against my position, I might manually close out my trade. But, I never manually close a trade simply out of emotion or because I thought about it for too long and convinced myself of something that the markets weren’t actually reflecting, this is what many traders do.
8) Accept that you don’t need indicators

I like to think of my website as one of the few true trading websites that focuses on price action and on real trading strategies, rather than the thousands of trading sites out there talking about indicators. If you’ve been following me for a while now you know that I focus primarily on trading off pure price action, with a couple of moving averages sprinkled in sometimes. However, if you want to know exactly why I think trading with indicators is a bad idea, checkout this article on forex indicators. Indicators are for those “lost sheep” traders still searching for some Holy-Grail trading system that simply doesn’t exist. The sooner you wake up to this reality the sooner you can get on the track to learning real Forex trading strategies.

[youngfx]

1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions

---------- Post added at 03:51 PM ---------- Previous post was at 03:50 PM ----------

1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions

---------- Post added at 03:59 PM ---------- Previous post was at 03:51 PM ----------

20 Simple Ways To Improve Your Forex Trading

In today’s lesson, I am going to outline 20 things that I personally do in my own trading and that you can start doing to improve yours. Please read today’s article closely because I spent a long time writing it for you and it’s full of solid tips and insight that can make a big difference in your trading. As always, please leave a comment after reading today’s lesson and let me know what you thought about it or if you learned anything new. Now, let’s get to it:
1) Have real goals and understand what you’re committing to

Having reasonable short-term goals that you can realistically achieve within a short period of time is how you achieve longer-term goals. Unfortunately, most traders become fixated on the long-term goal of “becoming a professional trader” as soon as they start trading with real money. The main problem with this is that just having a big long-term goal with no realistic plan to achieve it, is essentially worthless.

As a trader, a “reasonable short-term goal” might be that you stick to your trading plan for one month. Then, if you achieve that short-term goal you can give yourself a reward at month’s end, whatever you decide that might be. Just be sure you define short-term trading goals that you can realistically achieve, if you want to achieve your big long-term goal of becoming a very successful Forex trader. If you are seriously going to commit to become a full-time trader, you’re going to have devise a plan to get you to that point, just wanting to be a full-time trader is not a plan or strategy to make it happen.
2) Simplify your trading approach & your thoughts

One of the easiest ways to improve your trading that will also work to improve your overall mindset both when you’re trading and when you’re not is to simplify your trading approach. My key philosophy of trading is to ‘keep it simple stupid’. After years of trial and error in my early trading days, I finally realized that I was just making the entire process of analyzing and trading the markets FAR more complicated than it needed to be. When you use a simple trading method like price action, it eliminates most of the confusion, doubt, and frustration that traders experience as a result of being unsure of how to trade their system or strategy. Trading is not technically difficult, it’s emotionally and psychologically difficult; therefore it just doesn’t make sense to use a confusing or complicated trading strategy or system which will make both the technical and psychological aspects of trading more difficult than they need to be or are.
3) Develop your skills and plan before you trade

I am always amazed at how many emails I get from traders who basically tell me they are new to Forex trading and they want to open a live account. For some reason, people seem to think they need very little experience or preparation to make money in the markets. In reality, this couldn’t be further from the truth. Trading a real account is not something you just dive into with no plan or experience behind you.

I personally recommend that all traders have mastered an effective trading method like price action trading, developed a solid trading plan from that trading method, have a trading journal, and trade their plan on a demo account whilst recording their trades in their trading journal for at least 2 or 3 months before even thinking about trading a live account. The markets will chew up and spit out your hard-earned money faster than you can imagine (and you know that already if you’ve been trading for a while), so the more prepared and experienced you are before you start trading live, the better off you’ll be in the long-run.
4) Don’t fall off the wagon

It seems to be in our nature to get really excited and motivated about things only to see those positive feelings fizzle at the first signs of adversity or obstacle. How often have you or someone you know made a New Year’s resolution to get into shape and start eating better, only to find yourself back in the same old negative habits by the middle of February?

You’re not alone here; it’s human nature to be this way. However, we are equipped with very powerful brains that give us the power to overcome our human nature and evolution to the point where we can rise up above our peers and create positive habits rather than the negative ones that dominant many people’s lives. I can promise you that trading does not reward lazy people or people who cannot manifest the motivation to stay disciplined and follow a plan for a long period of time. It’s not difficult to get motivated about trading and create a good forex trading plan, what is difficult is digging deep within yourself and sticking to that plan and following your edge with ice cold discipline week in and week out.

Most traders fall of the wagon; they end up trading when there’s no trade, forgetting about their trading plan and gambling their money away in the markets. Don’t be one of the sheep; be the leader, be different, do the things you know you should do even when you don’t want to, persist and be disciplined even in the face of constant temptation, these are the things you must do to be a profitable trader.

[lalmiah00]

properly there's no approach we could not necessarily drop inside Forex yet we all only have to discover ways to business and also often be on the optimistic part with the industry and also according to my own comprehend i do believe trial consideration is the better destination for a help make a static correction zines....thanks

[youngfx]

The No 1 Forex Trading Mistake

Your biggest enemy in foreign exchange trading is emotion and the main reason for drawing up a set of trading rules is to take emotion out of the trading equation and to ensure that you are opening and closing trades based purely on what the numbers are telling you.

Another major problem for many traders is greed. Now none of us like to think of ourselves as being greedy, but this is one of the seven deadly sins which is always lurking close at hand and which has a way of creeping up on us when we're not looking. On many occasions successful traders find themselves with a winning run of trades, earning perhaps $500 or $1,000 a day, and think to themselves that, if they can earn this sort of money day in and day out, surely it must be possible to earn $750 or $1,500 a day. Well, there's only one way to find out and that's to push themselves a little by relaxing their trading rules to open up a few more trades - just this once.

Now they may well be lucky and their earnings might just go up over the next few days, but will it last? Invariably the answer is no and time after time traders in exactly this position find that their short term gains are wiped out and that they rapidly move from being one of the few successful traders to being one of the 80% to 90% of traders who regularly lose money.

It is very easy to allow greed to tempt you away from your own trading rules just this once and sometimes this strategy will prove to be successful. However, you're now beginning to trade on emotion and, like most things in lifeFree Reprint Articles, once you've done it once it's much easier to do it the second or third time.

Your trading rules are your best friend when it comes to Forex trading and you break them at your peril.

---------- Post added at 09:49 AM ---------- Previous post was at 09:48 AM ----------

Day Trading Mistakes - Avoid These 7 Fatal Deadly Sins!



Forex trading is not really an easy and novice-friendly investment opportunity. You are bound to stumble along the way, and commit some day trading mistakes in the beginning. This is normal. It's how things go. You learn from your mistakes.

At some point, you will have enough knowledge and experience to succeed in forex day trading, but beware... some mistakes can be very costly and you can lose all your hard earned money.

What you need to do to avoid this situation?

The best thing you can do to avoid this is investing in your forex education. Why not learning from others mistakes?

Experienced traders spent years developing systems and proven methods, and all this knowledge is waiting for you on the Internet.

Just read and watch some forex videos (on YouTube for example) before you start.

Another thing you should do is never trade in a real account... Unless you are profitable with your demo account several months in a raw.

In fact, you could even stay one year trading with your demo account before starting for real. Don't be afraid to practice with fake money. If you lose, it's not a big deal...

Many beginners in forex will do on of these 7 fatal day trading mistakes:

1. Impulsive decisions

2. Ignoring forex news

3. Not understanding the charts

4. Not using stop loss

5. They don't invest in proper material

6. No mentor (or mastermind group) in the beginning

7. Not understanding compounding

Remember, to minimize the effects of the consequences of these mistakes you might inadvertently commit, observe compounding as your game plan.

When reinvest your profits (that's what smart traders do), you'll considerably reduce your risk because even if you lose money, your initial investment will be safe.

I really hope you won't fall in any of these day trading mistakes.

---------- Post added at 09:58 AM ---------- Previous post was at 09:49 AM ----------

Trading the Foreign Exchange Markets (Forex or FX) can certainly produce a very fashionable life style leading to self employment and financial independences. What I am going to focus on in this article are three essentials Forex trading tips every professional trader either learns the easy way or the hard way. To be honest with you, most of them have learned the hard way. Learning to trade the currency is not like learning to hit a 100 MPH fastball that only one in a million can accomplish. In fact, it is quite easy to learn to trade Forex profitably; it is the other aspects of the profession that sink most investors, which I am going to help you avoid.

IT IS NOT A GAME

I am sure you are wondering what I could possibly mean by that. If you have been doing this long enough you know that there are certain times they are just about depositing funds in your bank account. An example of this would be recently the strong correlation the US dollar has had to the Gold and Oil markets. There was a period of time all you had to do was determine which way the dollar was trending and you knew Gold and Oil where going in opposite directions.

Even trained monkeys where making huge profits when this was happening, but guess what those opportunities are not there all the time. This is the first tip, DO NOT CHANCE THE ACTION! Let it come to you, it doesn't come to you all the time. What happens is people start making so much money they just can't wait to jump back in and do it all over again. So, at any little sign there is a buying opportunity they jump in just to get that adrenaline flowing again. Which is where the loses start occurring. You really must be patient and stick to what ever trading method you are utilizing and wait for the GREAT trades to come along and not the AVERAGE trades which you are getting into just to make things interesting.

MONEY MANAGEMENT

I have news for you, if you have a $1,000 in you account you are not going to make $1,000 a day off that money. You might do it one time, but then you will lose the next ten times chasing that one winning great trade you made. Each professional trader has a specific percentage of their funds they will risk on any one trade which is just a small portion of their overall balance. The biggest mistake the novice investor makes is they attempt to increase their available funds to trade with to quickly. It is difficult to stress patients and percentages enough, but then again even the professionals usually learn this on their own.

RISK MANAGEMENT

The corner stone to every professional trader's portfolio is managing risk on a daily basis. Some do it by day trading, thus entering and exiting the market daily eliminating any over night downfalls in their trade. Others manage risk through the use of Stop Losses. This also is another major mistake the novice trader makes by setting their stop loses to low verse the take profits.

Managing your stop loses verse your take profits is a real art form that not only takes knowledge, but is also developed through experience. If you set your SL to tight, even the slightest turn in the market and you're out, never giving yourself a chance to make the huge profit we are all hunting. Doing this you would have managed your risk superbly and your profits miserable. Not a real good combination for long term prosperity. You really need to pick out a percentage somewhere between 20% and 35% of your expected profits to use as your stop lose. Following this method you only need to be correct somewhere between 1/3 to 1/5 to break even. Since somebody throwing darts at a board is automatically correct 50% of the time when selecting a currency your chances of becoming a profitable trader are greatly enhanced. The next and only final step is to insure the accuracy of your profits estimates. When your actual profits are finally correlating with your initial estimate your well on you way to a new career.

By following the above Forex trading tips you will finally realize what is all about. It is not about the game, it is not about the excitement, it is not about the adrenaline, it is about only one thing, the MONEY. Making the money as opposed to losing the money is the only thing that matters. The first step is to cut back on the number of questionable trades you make to NONE. Only trade when you are sure. Next, don't invest too much into any one trade. And finally, don't let any one trade of series of trades wipe you out. If you follow these three simple principles that are easy to understand but difficult to execute you will be rolling in the dough just like the big time traders.

[dimaz99]

concur, do not look many from the prosperous trading forex newbies as if they module make themselves as apt to get a huge loss if the pursuit of wealthiness from trading, and the motion of riches in forex trading as advantageously be the large slip new traders

[faizah]

one of the typical currency dealing errors are many people think that currency dealing trading is an simple business. However, the truth is that it needs appropriate studying to procedure to know each and everything about how to business in foreign exchange industry. Because deals think it is simple, they often leap in before they are actually prepared and this outcomes in losing lot of cash needlessly.

[faisalishaq174]

According to me don't have a trading system may be a major mistake and if you are doing not have a trading system that means you'll possible be trading based mostly approach is alleged collapse . have a trading system suggests that you have got the rules and objectives and the way to attain a

[faridshawky]

There are no errors on the Forex but there say the work helps to earn money and forex is work to earn money

[cicgojra]

Here are Ten forex related mistakes.
1-trading with indicators and fancy tools 2/ not fully understanding and implementing risk /reward.
3/ not understanding position sizing 4/gambling instead of trading 5/ not having forex trading plan 6/ not have a patience 7/ allowing emotions to could judgement /giving into emotions 8/ not trading higher time frames 9/ over-trding 10/ not taking profit
and now here some sin's invovle
1- reliance on the experts 2/ setting the wrong goal and trading target 3- forgetting to practice, patience
4/ dont paying proper attention to drawdown 5- falling is love with a trade 6/ dont checking your emotions