In Forex trading over 95% of all traders lose money and most of them will make one or all of the key errors below. If you want to achieve Forex trading success, you need to avoid them.
The first mistake we are going to look at is one a huge amount of traders make and it leads to disaster, let's take a look at it.
1. Using Forex Robots
We have already said 95% of traders lose money and it should be obvious, you need to learn skills to win but many traders, buy a Forex robot for a couple of hundred dollars or less and believe the marketing copy, that they will get rich without making an effort! It's obviously not true and all the robots you see advertising triple digit gains, with little or no losses ALL lose money. You can win at Forex trading but if you think you will win with no effort, the market will teach you respect, in the form of an equity wipe out.
2. Over Leverage
Any broker will allow you to leverage your money by 200:1 and many traders think this is generosity but most brokers are market makers and they know, that if you lose they win; they also know over leverage wipes out accounts and traders will use more than they should. If you over leverage your account your going to lose and the maximum leverage a new trader should use is 10:1, this is plenty and don't worry, if you trade wisely you can easily make a huge income with this leverage.
3. Believing Forex markets can be Predicted
Most traders believe they need to predict exact lows and highs but they don't stop to think that this is really hoping or guessing and is no way to make money in Forex! If you want to win at Forex trading, you need to understand its a game of odds and if you want the odds on your side (which is the only way to win) you need to wait for confirmation of a low or high. You need to trade the reality of price change and by doing this, you can win it's as simple as that. An excellent way to do this, is to trade breakouts - so look this timeless way of making money up and make it part of your essential Forex education.
Above you have 3 simple errors which will all cause losses so avoid them, get the right Forex education and get on the road to Forex trading success.
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