Posts Tagged ‘forex newbie mistakes’

3 Things NOT to Do If You Want to Succeed in Forex Trading

There are three major mistakes too many newbies make as they dip their toes in the wild waters of foreign currency trading. If you are serious about succeeding in forex trading, here are three big DON’Ts.

1. DON’T miss the step of trading on a demo account before using real money. Your broker should let you open a demo account where you can practice forex trading without risking real cash. You’ll find out how to place your orders, how to follow what’s going on with your trades, when to get in and out of positions, etc.

Every forex trader wins some and loses some. But in your demo account you won’t mind losing “demo” cash as it won’t hurt your bank account.

It’s hard for new traders to get their heads around the idea that they will lose money in forex, no matter how good they are. All traders have losers, and don’t believe anyone who says they don’t. The key is just to accept that, and your long term generic 10mg cialis goal is to win more than you lose.

So DON’T start with real money: DO start by trading a demo account.

More Great Forex Info Here. Check it out.

2. DON’T be conned into putting all your trades in the “hands” of a robot. Forex trading robots are excellent tools, and they certainly can let you trade 24/7, or while you are away from your computer for any length of time.

But there are good robots and not-so-good robots. Some will work well for you and others won’t. A robot is just software, and sometimes it will come up with bad answers. If you can’t recognize that, your trading will suffer. You need to know when the robot you are using is coming up with the right trading signals, and you’ll only do that when you have educated yourself about forex.

So DON’T let the robots do all your thinking before you know the basics of trading. DO use a robot as part of your trading business after you have gained some education and experience. Here’s some information about a robot that really does work.

3. Don’t trade on emotion. Lots of unexpected things can affect currency prices, and sometimes quite dramatically. Earthquakes and floods, changes in governments, acts of terror, all these can and do affect currency prices.

It’s easy to panic when these things happen and sell prematurely. At the same time, it’s easy to be euphoric over great economic news and start buying inappropriately. Traders who let emotion get in the way of their trades do not prosper over the long term.

Making good use of technical analysis and trading charts is one way to guard against this. The charts don’t lie.

So DON’T trade on emotions or hunches. DO set your trading strategy and stick with it, regardless of world events or runs of “luck”.

Don’t be one of the would-be forex traders who falls victim to these 3 mistakes, or you won’t be long in the market.

Get your free 7-part forex mini-course now.

 Mail this post

Subscribe For Forex Secrets !

Get My Best F.REE Forex Profit Booster Training !

  • It’s Friday…Do you know how to find winning trades today? February 3, 2012
    Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 3rd of February. How do you find winning trades on Friday? Use “The 52-week new highs on Friday rule”! Here are the three rules you need to trade: Rule # 1: When a market closes at or […]
    Adam Hewison
  • Unemployment rate falls to 8.3% February 3, 2012
    The unemployment rate fell for the fifth straight month after a surge of January hiring. Is this a promising shift in the outlook for job growth? We would love to hear your thoughts on this topic, please leave us a comment. Every Success, The MarketClub team   […]
    Jeremy
  • Bernanke speaks and gold rallies…Amazing. February 2, 2012
    Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Thursday, the 2nd of February. Is the move in gold for real, or is it just hype at this point? We will examine gold and see what led to today’s rally. 3 Stocks on the move today: ABERCROMBIE & […]
    Adam Hewison
  • MarketClub TV for 2/1/12 February 1, 2012
    Did you miss tonight’s episode of MarketClub TV? Watch it now to get your market reviews for today! All the best, The MarketClub Team […]
    Jeremy
  • Amazon tanks, while stocks in Europe and the U.S. head higher. February 1, 2012
    Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Wednesday, the 1st of February. Is Amazon growing it’s business, or gambling with disaster? We will examine Amazon (AMZN) and see what led to today’s disastrous loss. It’s another lesson on how the technicals get the timing right before […]
    Adam Hewison
  • Would you buy or sell Facebook? Vote February 1, 2012
    Social media is big so everyone tells us , but would you buy or sell Facebook? The one caveat is, you have to hold the stock for 6 months. Thanks for your votes and comments The MarketClub Team […]
    Adam Hewison
  • Your thoughts and questions are important January 31, 2012
    We are looking for great questions for Adam and Jeremy to answer on MarketClub TV tomorrow night at 4PM EST. Are you wondering where the markets are heading? Or do you have a market that you would like us to analyze? Email your questions to marketclubtv@ino.com We’d love to answer them during the show.  The MarketClub Team […]
    Adam Hewison
  • Not a bad January…Except for RadioShack! January 31, 2012
    Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Tuesday, the 31st of January. Here’s a trading tip: Never, ever buy something because it looks cheap. We will examine RadioShack (RSH) and see what led to today’s disastrous loss. It’s a lesson every investor needs to know. Three […]
    Adam Hewison
  • Where do you think the S&P500 is headed in February? January 31, 2012
    What do you think is going to happen to the S&P500 in the next month? Are you bullish or bearish for February? Please feel free to vote and add your comments. Where do you think the S&P500 is headed in February? Thanks for your votes and comments The MarketClub Team […]
    Adam Hewison
  • Is it the “Golden Cross” or the “Death Cross” for the S&P500? January 30, 2012
    Hello fellow traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Monday, the 30th of January. The “Golden Cross”- Ignoring it can be costly. Today we will examine the “Golden Cross” and just how close we are to seeing this happen in the S&P 500. We’ll also look at the […]
    Adam Hewison
[slider_ads id=1]