One of major mistake often made by traders is the intraday trading. Without such kind of experience, novices want to win over the market. But intraday Forex operations are rather complicated and not for everyone. First and foremost it is related to speed of decision making that depends on trader's experience among all other factors. Novices are advised to try out higher time-frames first to accumulate experience and learn to understand market with all its pecularities prior to setting yourself to the intraday trading in Forex.
Every day more and more people willing to earn come to the Forex market. But unfortunately a few of them realize that earning on the Forex without experience and at least basic knowledge is a dead-end track. Until rich profit comes and Forex trader may be called successful, one needs to make efforts to acquire theory and subtle of the Forex market. According to statistics, novices always make mistakes and step on a rake in the same way their predecessors did.
Which mistakes make those, who recently became traders?
The most popular and crucial mistake is shortage of knowledge required for successful trading. Having come to the Forex market, freshmen immediately enter market, because they are induced by the thought that studied book or attended courses guarantee success. This is a misrepresentation: even if trader reads all existing books, it won't guarantee that successful trading will begin at once. Scrutinizing all market nuances is a fundamental thing as well as close work with more experienced traders and demo trading under their guidance. Only after that independent and careful work on market is possible.
The next significant mistake is a strong confidence in own forces and rush. According to statistics, almost all traders earn within first months and then lose all their capital. What is it related to? The reason is that the first success adds wings. Trader is in euphoria and in the result starts violating all possible rules. It must be remembered that rules remain unalterable and you are to strictly observe them.
Also novices often make trading against trend, which leads to a quick loss of deposit. It is recommended to follow the crowd and trading together with everybody. If entrance to market is suddenly omitted, do not jump into a “leaving train” and better wait for the next entrance. Also many people rely to various indicators too much. But there is one objection – they can point to a possible scenario and that's it. Decision about entering the market must be primarily made on the basis of your own analysis.
Missing trading plan for day also leads to losses. That is exactly why it is recommended to make a careful analysis prior to trading considering all possible scenarios of forthcoming trading day.
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