By Fabiano Trevisiol
Mistakes to avoid when doing online forex trading
Ok, you’ve just made another deposit into your account online trading forex, and this time you are sure that you will make money from forex. After all, you know exactly what were the mistakes you’ve made in the past and you did burn out your money, now you’re aware of how you should act in order to have a successful online trading, simply won’t make the same mistakes again. It was a great disappointment to lose all that money, but now you have a new account, cool to be start with a new capital ready to be raised properly.
Many traders go by this situation over and over, every time they start with a new account, feel that this is the right time. But instead continue to lose and lose their money repeatedly, that sounds familiar, right? It’s time to go over your mistakes, you stop being a head so reading economic news, buying different trading systems. The real reason of your losses is you’re unnecessarily complicating things, trading is simpler than what everyone thinks. It’s the excessive complication of something that is easy, to make you lose. The forex market is not complicated, it’s just a price on a screen that can go up or go down, everything else are superstructures built by those who have an interest in having traders losers on that speculate, to get rich behind them. The non-directional method meets this problem making you see the forex market for what it is, a simple thing, a price on a screen that can go up or down. non-directional gives simple rules to make you to understand, that why until today I did lose a lot of money in online trading.
But apart from non-directional, let see generally the 5 mistakes that more traders ofthen lose.
1- Be obsessed with online trading
Are you dependent on trading online or from your computer? Do not sleep at night because you thinking your marketing orders? You forget your kids at school or the stove turned on because you can’t stop staring at the charts? This is called obsession, is not healthy thing and you will not earn a cent and beyond that is make you sick.
Why are you obsessed with trading online ?
Are you looking for every reason to enter or exit a trade? Move the stop loss or take profit? All these things are the result of an emotional attachment to online trading. Doesn’t earn anything from trading until you will be emotionally attached. The emotion comes from the fact that you “need” of that money to fix your life, you need the market to give you the result to fix your problems and don’t see any other way to be happy in your life. You gotta WAKE UP and accept that there are no shortcuts, you must use a money management, you have to be patient and disciplined, you have emotionally from forex, find other interests in life, let the forex does not influence your feelings, let it become a mechanical and healthy thing, not a disease. To do this, a good starting point is a set of simple rules, mathematical, not interpretable but clear, and with stakes. I’m talking about the non-directional method, which is shown on this site.
The most important thing that you have to learn to accept, is that the forex trading will not resolve never a temporary need of your money. Online trading is a long-term thing where the fruit is beginning to see after years and years. Accepts this, and become profitable. I receive often email readers of this site, that I wonder how they can do to earn money more quickly, because they were out of work and need a salary immediately. Guys, forget, this is not the right approach. If thou hast need of profits, they never will, because you will be emotionally caught and inevitably make the classic errors, leverage is too high, money management is not respected and burned.
2- Interfere with trades
Once a position has entered the market, this is one rules of our strategy, there is no reason to interfere with this. The strategy should be followed strongly, without ifs and buts, everything must be planned and preplanned, the result would be to trade on the wave of emotions, and then we’ll be back in one emotional state that would lead inevitably to errors, mistakes, stress and loss of our capital. Follow the rules, write them down and put it in front of you, or stick it on the wall.
3- Analyzing and thinking to much
Once we have a set of rules and rigid poles, like those that can give us the non-directional method, we no longer need to spend hours and hours in front of the graphic thinking and rethinking what we see to be able to do who knows what. A good trader is not good at predicting the market, a good trader is good at break away from the market and operate with coolness by following strict rules and pre-planned. The forex market for more than 50% of the time is unpredictable, the entropy and randomness are to master most of the time, get aware of this aspect and you become a better trader.
4- Seek the robot that solves problems in 2 months
There is an expert advisor is able to do a thing, do not double up month after month, a good result is a 30-60% per year. If someone promises or claims to make performance better ask yourself how reliable? How long do online trading? How many years? It’s not impossible to make 150% per year, it is impossible to make 150% per annum for 10 years continuously. Working to make 150% per year is likely within maximum 3 years and the next 2 it will burn out all the profit in the accoun
5- Use complex indicator and turn the chart into a kind of Christmas tree
The forex market is dynamic, always changing, as we have already said most of the time moves randomly and there is no indicator that can change this rule. So, let us accept it and when the market goes in the opposite direction, let’s face it calmly, it’s normal! We do not seek to add chart indicators to reverse this phenomenon, to predict the direction of the market. There is no magic wand that will tell you where the market tomorrow or between an hour.
I hope this article was useful to be aware of the reasons that emotional loses money in trading forex.
For more information about forex strategy non-directional method click here.
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