The newbies are those traders who have just entered the Forex market. Most of the time these new traders do not have the basic knowledge about the Forex market and they only know this is a market where you make money when you trade. Trading and making money in Forex is very much different. Every trader is free to trade whatever currency pairs they like, whether it is major or minor. But making a profit from the volatile market is where it becomes hard. If you are a new trader in Forex and thinking to avoid the most common mistakes that newbies make when they start their career, this article will come handy to you. This is consisting of the many and most common mistakes that beginners could make in their careers.
Taking Forex market as random
Do not take this market as random. This is one of the most common mistakes that traders could make. Every movement in Forex has a background and before you place your trade, you need to analyze the market. The Forex market can be seen as a random market to the outsiders, but once when you are insiders you will know all these movements are related to the investment industry.
It’s not possible for any human being to predict the price movement of a certain asset with 100 % accuracy. The expert traders know this fact very well and for this, they always follow proper money management in every single trade. Being new to this industry you should never try to beat the market trend. Always be prepared to accept the managed loss. If you can learn the advanced art of money management than making money in this random market will not be a difficult task for you.
Trading every hour
Do not keep on trading the market every hour. This is one of the common mistakes that traders make in Forex. They get this information that they can trade every day in Forex and they develop a nice routine where they will trade for every hour. If you want to make money in Forex, trading hours has nothing to do with it. The less and quality trade you place on the market, you increase your chance of winning money.
Following other traders
Do not think you are not good for Forex. There are a lot of other traders who think they are the master and trade the market. They cannot make money and they begin to follow the other traders. This is how a group of traders is formed in Forex. Do not follow any groups in Forex. It is your money and you have invested it. Take your decisions by your own.
You are your own boss in the exchange traded funds community. There is no reason to listen to other trader’s advice and execute your trade. You should work very hard and learn all the major types of market analysis. Focus on the quality trade execution and learn new things in every single day. The more you will learn the better chance you will have to make money in this market.
Relying too much on market news
This market news can be also rumors. At the beginning of your career, do not rely too much on this information and try to rely on your analysis. As you grow experienced, you will know what information to take and what not to take.
Trading is an art and it’s not suitable for every certain individual. You must have the strong patience to this market to overcome all the obstacles during the early part of your trading career. Never trade the market based on technical analysis only. Learn the perfect way to do the fundamental analysis since it is one of the best ways to measure the strength of the market trend. Always trade in favor of the long term trend and use money management to save your trading capital.