|
Forex trading is a very hard business to be in, especially if your living standards depend on it. This is why it is crucial to eliminate any bad habits that traders have developed throughout their trading time. The more bad habits are eliminated, the higher the success rate. This is not as easy as it seems. Bad habits are a product of frequent and constant trading behaviours that cannot just simply go away. They are usually fixed within the person’s mind and to get rid of them requires a lot of practice. Below are a few bad habits you may find familiar: Constantly changing Forex brokers New traders tend to have the desire to start trading as soon as possible. As a result, they do not conduct enough research to collate a list of potential Forex brokers which is then funnelled down into one or two major choices. Instead, they sign up with the first Forex broker they find, fund their account and start trading. It is only after they traded for a while that they realise their Forex trading is much too expensive and a better deal can be found elsewhere. This is why it is crucial that you do your research first and take time in choosing who will be your Forex broker. If after 12 months you wish to do another search; that is acceptable. Changing Forex trading strategies This is probably one of the most common Forex trading blunders. Traders tend to lose faith in their strategies when the trusty strategies produce a few losses. The fact is trading is always going to produce losses. It is up to you to manage those losses with appropriate money management techniques rather than changing strategies. The next strategy you devise will also have losses and so will the next one after that. The sooner this is realised, the better. Being afraid to enter the market It is normally new traders or those that have faced significant losses that tend to be afraid to enter the market. On one hand this is understandable, but if entries are not made there are no trades taking place. The loss of confidence affects traders mentally and it can be very hard to return to the normal self. To avoid this loss of confidence affect traders the best remedy is to trade in a demo environment until that confidence starts to re-surface. Once it does, small trades are to be made in the live markets until the trading appetite returns with full power. Closing orders too early Exiting out of the market before a pre-determined profit target is a bad habit that decreases profits even if traders are profitable. To an outsider, this does not make sense. If a trader is profitable, they should not cut their profits down voluntarily. It is the fear of losing that is apparent here so the safe thing to do is to cut the trade off, only to see it continue into the original direction and show what could have been gained. The best exercise to undertake in this scenario is to place the order and walk away. Profit targets and stop losses can be set so that traders don’t need to be at their screens to manage the trade. Once the trade completes, it is time to see the result.
Related Articles -
forex brokers, forex trading, forex trading strategies, forex,
| 
