Monday, August 27, 2007

FOREX Trading - 5 Common Novice Trading Mistakes

In forex trading the odds are that 90% of traders lose. While forex trading looks simple it is not and if you want to join the winning minority dont make these common mistakes.

Here are your mistakes to avoid in no particular order of importance.

1. Trying to buy success

Its tempting to buy one of the courses or e-books sold on the net that promise you wealth for around $100.00, but common sense should tell you cant buy success in the manner.

If you really want to buy one - ask for the real time track record and see the profits the vendor has made. After all if he has made no money why should you trust his advice?

You will find in forex trading that most of these courses are sold by writers who have never traded in their lives, or failed brokers.

In most instances you wont get a real time track record. Dont fall for the hype.

2. Dont day trade

If you really want to lose money go ahead and day trade its the best way to wipe out your account equity quickly.

The odds are against you and the theory that you can tell where prices are going in such a short time period as a day is nonsense.

3. Understand and have confidence in your method

If you buy a method or do you own make sure you understand the logic it is based on or you will not be able to follow it with discipline.

If you dont have confidence in your method you wont have the discipline to follow it. If this occurs you dont have a method at all!

4. Choose a simple system

Its a fact in forex trading that simple systems work best and only contain a few indicators.

The more complicated a system is the more likely it is to break in the brutal world of trading.

Simple systems are easy to understand, easy to apply and have the best chance of making you money.

5. Work Smart Not Hard There is no correlation between how hard you work and how much money you make. You need to work smart not hard.

Get a simple system and once that is done and your trading should take an hour a day or less. Many traders are constantly chopping and changing systems looking for the holy grail but sadly it doesnt exist.

You can do it

The fact is everything about forex trading can be learned and anyone can learn the basics of good trading. To do this you must accept responsibility for your destiny.

No one else will give you success it comes from within.

All the information you need to start trading forex for success is on the net and its free. Get started by getting studying a technical breakout system and adding filters and you will see how easy it is.

To succeed you need to work smart, learn a method you have confidence in and then finally, have the discipline to trade it for long term success.


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