A whole generation has wasted future generations' money
because of Forex trading. What is going on?
Almost at the end of every hour tonnes and tonnes
of cash are dumped in the FX market.
When is that nonsense going to end?
Even the brokers who supposed to rejoice begin to worry
for their clients who are wiping out their trading fund
at a faster rate. Due to those worries, almost every
currencies trading broker offers free trading education
or material to help their FX traders. They also provide
demo trading accounts with a simulation trading tool.
Others even offer what is called social trading where
a trader may copy trade the trades of more experienced
The situation reached a point where the number of dormant
or inactive FX trading accounts is growing. Though stocks,
commodities and indices traders are not doing so well, their
rate of wiping trading accounts is reasonable.
I have also wasted large sum of money in the Forex market.
After that I do everything in my power to dig out the real
causes of Forex trading errors. As I said before, it is a mistake to
refuse to listen to somebody who has already been there.
Even if one does not respect that person, it wise to hear
him or her.
First Forex Trading Error
One of the Forex trading mistakes is over-trading. Most
FX traders are trading every time and placing
trades left and right. Those traders trade London, New York,
Tokyo and Hong Kong trading session. They sleep, eat and shower
at their trading desk.
They have red eyes and many sleepless
nights. They trade on the bus, train, boat, plane and even
in the shower room or toilet. As long as there is money in
the trading account, they just want to place a trade. After
a losing trade, they do not bother to review the trade, but they
just quickly place the next trade.
When the trading fund is
exhausted, they do not review what has happened. They do not
want to learn from their mistakes or gain insight from that
experience. All they will do is quickly grab money from
somewhere and pump it into the trading account because they
can't stop or pause their trading activities.
That is the biggest Forex trading error. Do not overtrade currencies because it is not good for your small trading account.
Second Forex Trading Error
Apart from the overtrading, the second Forex trading error is
not to know when not to trade. There are hours, days and periods
when one is better off doing other things in life than to be busy
trading Forex. It is amazing that only few Forex traders know
those challenging times.
That lack of knowledge can even caused
huge losses for an experienced FX trader. It is like playing football
on an icy ground. Not good. It is similar to a crazy pilot who takes off
during a severe weather.
I count on you to read every letter, word and sentence on those two
webpages. You will thank me if you do. Those who skip it can only
blame themselves for repeating the same old Forex trading error
over and over.
Third Forex Trading Error
The third Forex trading error is something that I finally discover.
And when I say it, people do not take it seriously. Sometimes, by
the time they realise that I was right all along, it is already
too late. What a shame.
Take it from me. It is not the same thing to trade Forex on a desktop or laptop like a tablet or smartphone. Hear me out before you smashed your computer because of anger or disagreement.
My recommendation to Forex traders is to use either a
desktop or laptop. The charting software on the tablets or smartphones do not do the same job like on a desktop or laptop.
Yes, one can monitor the trades on
them. Just be aware of it. Note that we trade with our eyes so if what we are seeing is not the whole picture, we can misinterpret it and make wrong decisions.
Understand that most professional traders trade on a desktop or even wider screens. If one knows what one is doing then fine. If it suits your trading style, and it is not a problem then carry on. If one does not have a laptop or desktop then one must be very careful. I hope this helps.
Fourth Forex Trading Error
Most Forex retail day traders are part time traders. Therefore, they are not watching the Forex market throughout the trades. So those traders place their trades and go about their daily activities. From time to time, they check on their phones or computers what has happened.
I believe this is a sad situation because a day trader must watch the trade in view to cut losses and manage the trades. There is no other way. A very good way to waste money as Forex day trader is to be away from the trading desk when one is day trading.
It would be better for a day trader to find a free time when he or she can day trade at a trading desk. A part time Forex swing trader ought to place the trade when London or New York is open.
Not before, not after those two markets. At the time of entering the swing trade, a part time FX swing trader ought to be at his trading desk on a laptop or desktop.
Part time Forex day traders have lost more money than anyone else in the Forex market just because they are absent active day traders.
Fifth Forex Trading Errors
The fifth Forex trading error is to ignore the economic news. No other financial market is so affected by the economic news like the Forex market. For that I do not try to be nice to Forex traders that are
still dragging their feet when it comes to the economic news.
I say this: if one does not want to check or pay attention to the economic news, one should never trader Forex. Just quit Forex trading.
The news are coming in round the clock from different parts of the world. There is no place for a lazy FX
Those news cause me so much loss before I finally take it seriously. This is not a joke.
Please take note of https://www.forexfactory.com. That is the only website that a Forex trader needs when it comes to the high and low impact economic news.
Please go onto YouTube and watch video tutorials
about how to trade Forex news from various channels. Read multiple articles on that matter too. It is a whole subject that a currency trader can not afford to skip because of trivial excuses.
The most vulnerable traders to the economic news are beginner FX traders. Due to those news, FX traders who do not pay attention to the first Forex trading error (overtrading) are constantly fried like KFC
chicken anytime a news is released. I can only feel sorry for them because I have already told them.
Six Forex Trading Errors
I am a bit surprised to see that many Forex traders who do not know how to use common technical indicators like RSI, CCI, MACD and the slow stochastic. Many do not understand the simple moving averages, and why there are whipsaws.
I have also noted that though many think they know how to trade chart patterns, the fact is that they are just fooling themselves.
I have also watched traders who trade without drawing trend lines or
channels; and key horizontal support and resistance levels.
So what I am saying is that the sixth or devilish
Forex trading error is to refuse to learn how to use technical indicators or trading tools. Like other tools, one ought to learn how to use them flawlessly instead of selling every overbought, and buying every oversold.
I think many traders are running before they can even crawl. In fact they are letting themselves down.
Go to stochastic-macd.com and dayprotraders.com to learn how to use common technical indicators. Watch related videos playlist at dayprotraders and georgetrio YouTube channels. Keep learning, just
keep learning, a little bit more each day without stop.
Seventh Forex Trading Error
The seventh Forex trading error is about setting the wrong goals. For example, the goal to be rich, millionaire, bankrupt the brokers, quit my job and retire, or to beat the Forex market as they say.
Those are very bad goals that can quickly pull one out of the Forex market.
In contrast, there are other better goals such as:
1/ To gradually become a better Forex trader.
2/ To reduce losses when day and swing trading FX.
3/ To protect and defend the trading fund or account.
4/ To lean how to trade Forex like a pro, and adopt the mindset of a professional Forex trader.
So setting a good goal is a good start. That will help one to focus on the goal at hand. After that one will create the plan to fulfil the goal. The number one goal is to become a better Forex trader.
Remember that those who are becoming increasingly a better Forex
trader will also reduce their losses, improve trading results, and with a bit of chance make more money. In trading luck and chance do count in many cases even when one has done everything like a pro.
A forex trader who take into consideration those seven Forex trading errors will slowly but gradually know if Forex trading is for him (or her) or not. Forex trading can cause big losses especially if one takes into account the cumulative losses over the years.
The sad thing is that most Forex traders jump into the deep end of the FX market waters before they realise that they do not know how to swim. I hope those seven Forex trading errors will help many Forex
traders to do things differently. It is pointless to keep repeating the same FX trading mistakes, and expect better trading results.
The question is "do you have what it takes to be a better
Are you willing to remedy those FX trading errors, and move on once and for all?
Are you ready to be patient and gradually deal with each currency trading error until you overcome it?
Is Forex trading for you or will you be better off trading something else?
So those are the questions one must ask oneself before continuing the journey of Forex trading.
As of me, I have done my bit by sharing with you what I have learnt as a Forex day and swing trader in these messy and slippery financial markets. I hope I can now have a sound sleep tonight after getting it all out my chest.
I hope, it has been useful to you. If yes, feel free to share this article on the social media. I will really appreciate that. Till the next time, enjoy yourself as a Forex trader, and be very happy. Thank you for visiting.
This article is written by George Beaulieu