Forex Trading Mistakes - 3 Common Ones Which Wipe Out Equity Quickly

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If you want to win at Forex trading don't make the 3 mistakes enclosed. The majority of new traders make them and if you make them, you will lose your account equity quickly too...

Let's look at the 3 common mistakes which see traders lose their account equity quickly.

1. Using a Forex Robot or Expert Advisor

The claims made by vendors are laughable, double your money each month, with no real losses and sit back and relax, while an automated trading system makes you a regular income.

Does anyone really believe they work?

Lots of traders do, despite the fact you never get an independent track record of real gains that match the track records.

You don't get more profits than the worlds top fund managers (on millions or hundreds of millions per annum in annual salaries) by spending the cost of a night out.

Let's just finish by saying, the world's investment houses use real traders, pay the big salaries and haven't gone for the cheaper alternative - wonder why?

2. Using to Much Leverage

You can get leverage of 400:1 or 700:1 with many Forex brokers and traders want to use it - but the fact is leverage not only creates more risk, it also creates a huge transaction cost and traders soon wipe themselves out.

A novice trader should start with no leverage and use 10 - 20:1, when they know what their doing; just because a broker gives it to you doesn't mean you have to use it!

Over leverage destroys more novice accounts, than any other single reason.

3. Trying to Predict market Behavior in Advance

Prediction is another word for hoping or guessing and that won't get you far in Forex trading or in life.

Try predicting where markets will go and you will lose. Ignore the far out theories like Gann, Elliot Wave or Fibonacci which claim to be scientific there not. For a theory to be scientific it has to work all the time and no theory does.

If there was such a theory which worked all the time, we would all know the price before it happened and there would be no market!

Trade the reality of price change and never predict.
There are of course many other mistakes traders make but the above are the most common yet there easy to avoid and are really common sense.


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