Common mistakes in forex trading

Common Mistakes in Forex by InstaForex Nigeria

This post by Instaforex Nigeria is designed to educate traders on how best to avoid Common Mistakes in Forex trading.

1. INADEQUATE KNOWLEDGE:  Trading is knowledge based. Most newbies don’t take time to acquire the required knowledge instead with shallow knowledge acquired from Forex workshop/Seminars they take a plunge only to get their fingers burnt.

2. AFRAID TO TAKE A LOSS:  Trading is business and losses are part of a business and should be taken as part of expenses. Please note that getting trades wrong is natural and should be expected. So don’t give up easily; only re-strategize. At InstaForex Nigeria how to minimize losses are adequately taught to our trainees by our award winning Mr. Paul Odibeli of InstaForex Nigeria Technical Support Department.

3. OVER TRADING: Most traders particularly newbies tend to trade excessively undermining their equity. This is not advisable at all.

4. EXCESS LEVERAGE:  In as much as leverage would enable the trader to make more money, one should remember that it is a two-edge sword which in most cases gets a trader’s account wiped out. In other words, high leverage is of great benefit for one to grow his account.

5. INDISCIPLINE/MONEY MANAGEMENT:  Trading is a long term business and should be treated as such. Most traders in a bid to grow their account throw caution to the wind thereby negating all the rules. This happens to most greedy traders/newbies and they get their account wiped out thereby giving up easily.

All these and other mistakes in Forex trading are duly treated/handled and advised to our clients at www.instaforex.com.ng

 

Disclaimer: This post is not a trading advice but meant to teach traders how to avoid common mistakes in Forex trading.

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