Learning How To Avoid Failure in the Forex Market

One of the worst mistakes you can make is to have an awful broker, there are a lot out there and so make sure you choose the right one, do some research. I keep going on about having a good plan, but in all seriousness, a plan helps you to be consistent otherwise you will end up unfocused and with no direction, if you do have a plan, try and make sure that you stick to it, setting yourself goals that are realistic and achievable. Try not to dabble in many different currencies, focus on one as they each have a specific way of trading and if you try to focus on more than one, you will never understand each of their own peculiarities. Bill Poulos gives great advice in his Forex Income Engine course and I really do recommend sitting up and listening to him. You can take as long as you want to go through the course, as it is, if you like, elective learning.

Another mistake that many new traders make is to end up thinking about long term trades. In trading it is very much a live for the moment atmosphere. If you are a day trader thinking long term will not help you with your short term trades. Trend of long term are important but not when you have a short time period. I can never overstress how important it is not to be overconfident. Statistics have shown that there is an extremely high failure rate and so if you are doing well, try not to take it for granted and always make sure you take advice and any chance that you have to improve, take it. As mentioned in part 2, demo accounts can be misleading and I don’t rate them, for you learn to play with fake money and this can result in bad habits. The best thing to do is to enter trades can carry small risks to yourself and will not make or break you if you win or lose, this may be hard for some people as the temptation to trade big is very appealing but try and stay calm and focused and remember all the advice given.