Common Mistake We Must Avoid In FX Trading

forex trading mai kuch mistakes jo k bhot he common hai in ko avoid kar k hum achy trader ban sakty hain or achi trading kar sakty hain.........

For averaging down, traders must not add to positions but rather exit losers quickly with a pre-planned exit strategy.......

Traders should sit back and watch news announcements until the volatility has subsided. Risk must be kept in check, with no single trade or day losing more than what can be easily made back on another....

Expectations must be managed, and what the market gives must be accepted. By understanding the pitfalls and how to avoid to them, traders are more likely to find success in trading.......

a trader must also accept what the market provides at different parts of the day. Near the open, the markets are more volatile....

Specific strategies can be used during the market open that may not work later in the day. As the day progresses, it may become quieter and a different strategy can be used.....

Towards the close, there may be a pickup in action and yet another strategy can be used. Accept what is given at each point in the day and don't expect more from a system than what it is providing.......

.............. Unrealistic expectations come from many sources, but often result in all of the above problems ...............

Our own trading expectations are often imposed on the market, leaving us expecting it to act according our desires and trade direction.....

The market doesn't care what you want. Traders must accept that the market can be illogical .It can be choppy, volatile and trending all in short, medium and long-term cycles....

Isolating each move and profiting from it is not possible, and believing so will result in frustration and errors in judgment............

Excessive risk does not equal excessive returns. Almost all traders who risk large amounts of capital on single trades will eventually lose in the long run......

A common rule is that a trader should risk (in terms of the difference between entry and stop price) no more than 1% of capital on any single trade......

Professional traders will often risk far less than 1% of capital. Day trading also deserves some extra attention in this area.........

A daily risk maximum should also be implemented. This daily risk maximum can be 1% (or less) of capital, or equivalent to the average daily profit over a 30 day period........