Mistakes to avoid for beginners.

[bassem]

there are almost 5 dangerous mistakes the should be avoid it by begainers
1-Premature Exits 3-Letting Losing Trades Run
2-Over Trading 4-Unrealistic Expectations
5-Gambling Mentality
google it ??

[amni570]

these are very good point. new trader don't care these point. they have only and only one mission to earn more and more in one night and become a rich mane in jus short time. so they get losses.

[d5358]

1. Be Wary of Holding Overnight

Suppose that you purchase a leveraged ETF for 100.00 and it ends the day up 10% at 110.00 and you realize a 2x profit of 20%. The next trading session, the leveraged ETF falls 9.1% from 110.00 to 100.00 and you realize a 2x loss of 18.18%. While this doesn�t sound all that bad on the surface, an 18.2% loss on 120.00 amounts to $21.84, which puts the position at just 98.16. In effect, you�d realized a loss on what would have been a neutral position
2. Compounding Works Both Ways

As the example above illustrated, volatile markets can lead to big losses for leveraged ETFs due to the fact that compounding works both ways. Suppose that the aforementioned leveraged ETF sways by the same 10 points every two days over a 60-day period and you continue to hold it. While the underlying index may be dead even at 100.00, your leveraged ETF position would be down by more than 50%, if repeated 30 times, resulting in a significant loss.
3. Watch the Reset Period

The majority of leveraged ETFs reset their exposure daily, which means they amplify returns over the course of a single day. So, when considering the performance over a week, the performance depends largely on the path the ETF takes. While this isn�t a problem in trending markets where visibility is clean and simple, seesawing markets are a different story and can quickly erode returns in the same way that we saw in the example above
4. Be Aware of Derivative Risks

Since they use financial derivatives, leveraged ETFs are inherently riskier than their unleveraged counterparts. The additional risks come in the form of counterparty risk, liquidity risk and increased correlation risk. Meanwhile, traders also have to consider external factors such as the impact of leverage on portfolio volatility. For example, leveraged ETFs may not be appropriate for retirement portfolios ETFdb Pro Members Only trying to maintain a low beta coefficient.
5. Active Traders: Use With Caution

Leveraged ETFs can be difficult to analyze and scary to some traders, but their usefulness makes them difficult to ignore in many cases, since they can be used to effectively trade on margin. That is, rather than borrowing money from a broker, traders can simply buy a leveraged ETF with cash on hand in order to accomplish a specific trading objective. However, leverage is a double-edged sword, with a bigger move down being just as possible as a bigger move up.
6. Long Term Investors: Stay Away

Leveraged ETFs may seem appealing to long-term investors, given their ability to amplify investment returns. But, as we�ve seen above, there are great risks to holding them over a long period of time, making them a riskier bet for long-term investors. Long-term investors may want to instead consider purchasing traditional ETFs on margin, enhancing the leverage on their positions using call options, or employing other more traditional techniques
7. Keep an Eye on the Costs

Leveraged ETFs can be more expensive than traditional ETFs, due to the complex strategies they must employ to obtain leverage. For example, the Direxion Daily Financial Bull 3x (FAS, A) has an expense ratio of 0.95% and the ProShares Ultra S&P 500 (SSO, A+) costs 0.92%, while ETFs that track these major indices without leverage often cost less than 0.1%. Traders should carefully consider these costs and their impact on returns when buying and selling leveraged ETFs.
The Bottom Line

Leveraged ETFs are a valuable tool for active traders looking to leverage their position without the use of margin or options. However, there are many risks associated with using these ETFs that traders and investors should be aware of beforehand. Knowing these risks, long-term investors may want to shy away from holding leveraged ETFs, while active traders utilizing them should always be mindful of their position.

[fxmasterind]

My friend basically forex traders could not get success in trading because of lack of knowledge and skill. We have to understand the trend of the market and for that we need to develop a trading strategy that will help us to get success.

[8421827]

As a price action trader, I believe that all fundamentals and Forex news releases are reflected and can be traded via the price action on a plain vanilla price chart. The main reason why I believe this is because news events and other variables are nothing more than catalysts that cause the market to move.

[kami5744]

ye bht he informative post hy or is sa new user ko bht help mile ga hum sab kho chaya kay ase he post kia kare take os sa on logo ko fayda ho jis kay pass knowledge ki kami hy or jis ko kuch pata nae hy is tra kay post sa new user ko fayda ho to humai be acha lage ga or hum ko khushi be ho ge

[hasnainbwn]

je han bignere ke liye bht zarori hai ke who kam time main agar enring krna chte hain tu who achi invesmtment kren forex main kr time zida se zdia den forex ko or ache lenring bhe kr len forex mai,

[Leteipa]

As a begginer ter eis alot that can be done to the best of our levels we have seen the markets working well in certain level of integrations and for these we have to run the same working and well worked process that can be seen the working process of channels in integrations

[ishvara]

yes I also think most newbie trader have lack of experience trader should trade on demo account to gain experience.When I was a beginner, I used to make these same mistakes with my demo account. Now with some experience, I do not make these mistakes so often.

Yes the Newbies are always not possessing the right amount of experience in Forex trading because of the fact that they have not yet had time to practice. A Good trader is already experienced.

[vint]

yes I also think most newbie trader have lack of experience trader should trade on demo account to gain experience.When I was a beginner, I used to make these same mistakes with my demo account. Now with some experience, I do not make these mistakes so often.