For many people, the forex market is indeed attractive because of its several advantages. For example, deposits with funds that are increasingly affordable and great opportunities to get multiplied profits.
However, you must know that forex trading is not merely something that brings profit. Forex trading can also make you lose because of the mistakes you’ve made.
Therefore, before deciding to jump into the forex market with a live account, you must understand the ins and outs of forex trading to reduce the amount of loss.
To achieve success in any field there is no instant way. Thus, you have to be willing to go through a long process of learning forex to become a reliable trader. Two important factors can support your success, that is your knowledge and experience.
Check out the things that you should avoid when learning forex trading:
Do not study the strategy and analysis thoroughly
The common mistake of novice traders is to want to enter the forex market even though it is not enough in terms of forex strategy and analysis. As mentioned earlier, forex trading does not only create opportunities for large profits, but it can also cost you money in an instant. Therefore, to anticipate this, every trader must have profound abilities related to trading strategies and how to conduct market analysis.
Besides, you must know market news, geopolitical conditions, and so on that support your trading activities. A trader must be disciplined to carry out his plan for both short-term or long-term goals.
Some other things that you must also master are the entry, take profit, exit, and cut loss positions.
Do not install stop-loss
The stop-loss feature is useful for limiting the risk of loss for each of your trading activities. You must set stop-loss in the right position. Forgetting to install this feature can make your investment disappearing uncontrollably.
This is why novice traders should use this feature to avoid losing in large amounts.
Emotional
If you trade emotionally and do not prioritize logic, you will not be able to control your investment properly. You must remember that trading is not a gamble where profits are made because of luck. In trading, you have to learn and apply some systems and patterns.
Not studying the forex market conditions
Economic developments greatly affect the forex market. Thus, you must study price movements with the fundamental analysis presented on charts. According to Investopedia, the analysis may help new forex traders to become more profitable. Besides, news about the global economy will have a very strong influence on the forex market. Ignoring this will only make you suffer losses.
Read more: Is Forex Trading Halal or Haram for Muslim?
