Best Online Trading Tips: 4 Currency trading Mistakes That Could Cost You $30,000

A few months ago I had the chance to work with a Trader who was very well funded but he was struggling to get the profits he wanted. He contacted me after looking at some of my best online trading articles. After several meetings we were capable of finding an effective trading strategy and money management plan to fit his trading goals.

 

However, he had lost $30,000 from his money and he was been a victim of the psychological manipulation of the market.

During my meetings with him I was able to detect the primary mistakes he was committing and that were preventing him to profit from the market. In this article I will be sharing with you the mistakes I saw he was committing that cost him $30,000 in trading losses.

 

Not utilizing the right money management and risk management techniques:

One of the primary issues this trader had was that he was using the wrong money management techniques. People make you think that making the most pips is what really counts, however I think differently. A pip is a unit of measure which is used in Foreign currency trading and the number of pips you produce in a trade is merely determined by price fluctuations. In contrast, when you use percentages as goals as opposed to pips you will be able to manage and measure the performance of your trading account.

 

Allowing your emotions to cloud your judgment:

 

Letting your emotions get on the way is the best way to lose all of your trading funds. When a trader is manipulated by his emotions he is more prone to make irrational trading decisions, and irrational decisions lead to losses.The best way to control your emotions and become a disciplined trader is by following a strict money management plan and goal oriented trading strategy. Building yours should be one of your first priorities as a FX trader.

 

Over trading creates failure:

 

This is one of the most detrimental and expensive trading mistakes. Overtrading is defined as the action of trying to find trading opportunities when they are not there. Sad but true, over 80% of all traders I have had the chance to do business with were overtrading. In the past I have compared over trading with an addiction like alcoholism. A person who has a drinking problem never admits that he has an addiction nor does a Currency trader who is over trading. The only way for somebody who over trades to be profitable is to admit their mistake (overtrading mistake) and find a way to fix it.

Trying to find instant gratification by trading low time frames:

 

I don’t have anything against scalpers or people that like to trade low time frames, I know low time frame traders who make a killing in the Forex. The issue is that scalping is not for everybody. Many people become scalpers for the wrong reasons and quite a few times they just want to make some money quickly. Unfortunately, this is not how successful Forex traders roll and I have discovered that looking for instant gratification is likely to lead to big disappointments.

To conclude, make sure you focus on putting all together and don’t rush to open up a live account if you are not ready.

All the best,

Jay Molina

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About the author

JM is an advanced Forex trader that helps other investors around the world to learn about the Forex market and its rewards and risks. To learn more aboutbest online trading tips visit the link: http://www.myfxventure.com

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