Anyone who enters the Forex market aspires to become profitable. However, it can be very frustrating especially if you start on the wrong foot. Here we discuss the 4 Forex trading pitfalls you need to avoid if you want to have a successful Forex career.
Learning from self-proclaimed Forex experts
The Forex market is packed with educational companies or individuals who consider themselves “experts in the market”. Their service is NOT FREE. They typically target beginners. They prey on their emotions and promise huge returns in no time. To avoid this, the first thing you should do is to request a copy of their trading history. If they can’t provide such, you’ll likely get 3rd-hand information. Do not waste your hard-earned money on seminars or systems from self-proclaimed Forex experts who don’t know first-hand what they are talking about.
Relying on Forex signals too much
If you are a beginner, using Forex signals may sound appealing. Forex signals are basically trading ideas provided by signal service providers. All you have to do is to copy the signals. However, it isn’t as easy as it sounds. Forex signals won’t do all the work for you. Yes, you can make a few pips, but you won’t be any closer to your goal of becoming a successful trader.
Using Forex robots
The thing about Forex robots is that they don’t guarantee profits. We can’t deny the fact that a lot of trading today is algorithmic, but this is far from those Forex robots sold to gullible traders online. Making money using robots is possible only for those who know the ins and outs of algorithmic trading.
Trading without a plan
For every trade, your end goal is to make profits. A trading plan details all the steps you need to follow when entering and exiting trades. This allows you to stay on track and make well-informed decisions. Without a trading plan, more or less you’ll be trading on emotions.
