There’s no secret that traders who are just starting are the most prone to making errors, no matter the platform they’re using. And this is normal since every pro needed some time before learning a few tricks. But the good part is that they aren’t the first to make such mistakes, meaning that they can learn from others!
The most important thing a beginner must understand is that even though it’s ok to make a few small errors at first, falling for them over and over can lead to a chaos-causing snowball effect. That’s why we have identified what we like to call two of the most common forex mistakes, so you can be aware of them from your first days as a trader and know how to avoid them at all costs.
Let’s see what makes them so scary, shall we?
Lack of a plan
Yes, you read that right. Probably one of the most common mistakes a newbie forex trader does is starting without a plan, otherwise a crucial plan of any successful strategy.
On the other hand, if you aren’t following any plan, you will, most likely, deal with inconsistencies that will eventually pile up. Therefore, the only way to protect yourself and your investment is by having a trading plan.
Being a successful trader doesn’t mean that you have to earn a lot in just a few trades. Instead, it can bring you consistent earning as long as you have a carefully crafted strategy!
A lot of traders, including experienced ones, can be easily attracted to the high leverages or margins that various platforms offer. Why? Because this allows them to magnify their capital as they make trader. However, on the other hand, they tend to forget to account for high risk.
Remember: forex is no joke or a gamble. A successful trader will always rely on reasonable leverages and avoid going way too deep into their pockets.
Yes, forex does include a lot of variables and forces you to play. But after learning how to trade and the trends, you will be up to develop the right strategy and, after some time, increase your profitability!