We have a wide range of people who have taken on our FOREX trading courses and gone on to do very well for themselves. From a Washington traumatic brain injury attorney to an office clerk in Maryland, a team of firefighters in Durham, NC and even a young member of staff working for NASA. Whilst we do count on a wide range of people, they are all alike in that they are beginners when we start working with them, and we so often see similar mistakes made by those who are just getting started in FOREX trading.
If this is something which you have been considering, here are some of those common mistakes which you should look to avoid.
When we trade FOREX the idea is to build up a steady income stream which will make money over the long term. One very common mistake which we see in beginners is that they want to make a lot of money, and they want to make it quickly. Not only is this unrealistic, but it also has a damaging impact on how you trade. Those who want to make big gains quickly will take more risks and this will usually mean that they lose much more than they make.
There are many social media accounts and YouTube channels which can offer some support and advice on how best to trade currency. Whilst there is no doubt at all that some of these accounts can offer you great advice, it is important that you do not just take them at their word. No matter who you receive advice from, or what kind of advice it is, you should always perform your own research before making any trades. Use these accounts as a resource and not as gospel advice.
Something which you do have to come to terms with is that losses are part of trading, and in the short term they are certainly acceptable. A mistake which is commonly made however is that beginners will look to chase those losses and close the day on a positive. The reality is however is that if you are consistently losing, you need to go back to the drawing board. Chasing losses will see you make desperate and incorrect trades which will only lose you more.
Risking Too Much
As we have already mentioned, the best approach to FOREX trading is one which is slow and steady, and this is why you should only risk a small amount of what you have. Some people go in with far too much money and expose themselves to a great deal of risk. Not only is this a dangerous way to get started with trading, it is also going to mean that you are overly invested emotionally, because of the quantity of your savings which you are pumping into this strategy.
These are mistakes which you should look to avoid when you first get started with FOREX.