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Currency Exchange Capital Market Trading: Do Not Fal For These Massive Mistakes

The foreign exchange capital market is world and thus it’s the biggest financial market in the world. There is a lot of cash to be made by trading your investment funds on the forex or forex market but at the same time it is an extremely dangerous way to cope with your funds. Just like with other types of trading, folk go into it thinking they will become rich quick and that is not the case at all. The reality is that traders either become rich slow or they lose their money.

So how does one make sure that you are in the proportion of winners? You can give yourself good start by making sure that you avoid these six massive mistakes.

1. Relying on robots

Trading robots like Forex Enforcer is an option, but blindly relying on robots is not the best way to trade. At all times do your homework regardless if you use any software.

2. Dreaming

Having dreams about riches is the shortest way to ruin when you’re trading currency. It is vital not to over stretch but take your profits at the level that you planned. If you are consistently praying that the next trade will be a 500 pip triumph, you will easily be tempted to hold on until you all of a sudden find the market turning against you.

3. Regrets

Any time you catch yourself thinking about what might have been, stop that thought in its tracks. This goes right along with dreaming in that if you don’t watch out, regret will grab your hand and lead you into ruin. If a trade turns sour, just record it and let it go. And if you suspect that you cannot let go of thoughts, you may want to try a little meditation.

4. Giving up too soon

Be careful not to give in on a good system simply because it is going through bad times. Look to the long run results. It is true that infrequently the behaviour of the forex capital market changes and makes a previously workable system unprofitable, but if you suspect that is taking place, simply paper trade or demo trade it for some time. Leaping into a new system isn’t going to resolve the issue.

there is no system that works 100% of the time. Losses are a part of the method should be accepted as such. So long as your general results are profit-making, do not get excited by successes or disappointed by failures. Treat them both as numbers and keep emotions out of it.

5. Acting too shortly

If you are impatient you will not be trading at the right time and your results will suffer. Impatient foreign exchange traders do not wait for the signals to be right but jump in and open a trade because they suspect things could be about to go their way, or because they have not had a trade opportunity for a while and they’re bored. Big mistake!

6. Acting too late

Hesitation, on the other hand, usually happens because you do not trust your foreign exchange trading system. You’ve got the signals but you would like to wait for another movement or another suggestion before you act. If you often find yourself in this scenario you could need to test your system further or cut back your position size so that you do not feel so afraid. Fear will hold you back from making your move in the forex capital market at the right time.

Source: http://www.forexdiscussions.com/