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Long Term and Day Trading Forex Mistakes

Long Term and Day Trading Forex Mistakes

Posted by Trader On April - 12 - 2009













42. Currency forex market trading against the trend is a common mistake. It may follow overtrading or too frequent one-day deals with insufficient capitalization, worsened by lack of investment management.

43. Some world currency market traders jump into the market based on some mass media information about currency market that might have already be taken into account by the market.

44. Lack of discipline causes lack of analysis and wrong conclusions.

45. Traders seldom plan their trade parameters and even more seldom they keep them.

46. Most traders exceed the forex market trade plan with no analysis at all. They open too many positions and close too soon because of lack of information. They tend to make too many one-day deals with insufficient marginal supply. Thus they are unable to take small losses.

47. Many traders use “the logics” that is not enough or based on some old information. They accept small profits not allowing it to grow and tend to keep the loosing positions. Most traders spend no time or effort to analyze the market. Some tend to analyze their guesses, feelings or rumors.

48. Too many traders don’t accept the methods of world currency exchange investments management. They have neither discipline nor trading plan. Many are “frozen” once the market is against them and do not keep their losses.

49. Many traders have not enough investments. They trade too large positions comparatively to their general investment fund. That prevents them from being flexible enough to change their mind when the market is absolutely against them. They have no good trading plan with the strategy of entering and leaving markets to stick to.

50. It’s not worth making decisions based on insider’s information. First, it’s illegal. Secondly, it’s mostly disinformation.

We hope that the information we provide you with enables you to understand what the statistics of 90% traders leaving the market means. Having just considered the main problems you may take a very important lesson. Knowing the facts and understanding other’s mistakes may help you work out your own winning strategy matching your trading volumes, targets and qualifications.

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