Forex trading has inspired many people to dream big and convert their dreams into reality. Though it is also true that of forex trade is not taken seriously as a profession and played more like a gamble it can even trash your dreams. While many traders become successful in the foreign exchange market, many also suffer huge losses. If you are an aspiring trader in the FX market and want to go forward instead of quitting, these are few mistakes that should always avoid.
1. Not Seeking Guidance From A Mentor
This is a very common mistake that most of the aspiring traders do. When a person enters into forex trading, the first thought that comes to their mind is that they have to just try their luck. It works for a couple of times in some cases, but not every time. This enlightens the trader to start reading better strategies on the internet and books. This is the biggest mistake that they do. Instead of reading theories and strategies on the internet and in books, is just like self-medication, which can be harmful. It is because you do not have the clue how a strategy can work until you have had an experience of it before. A mentor can guide you with the pros and cons of a strategy and also tell you the right way and time of using a strategy.
As an aspiring forex trader make sure that you have a chosen the right mentor and are also following his or her instructions strictly.
2. Being Emotionally Involved With The Trade Results
If you see how the experienced traders are, you will notice they are calm and relaxed. The reason for this is not the reason that they are earning well. The experienced traders also lose sometimes. When they win it is big, but in both the scenarios they are emotionally balanced. They have not lost their interest in the forex trading but they have learned that more emotionally stable they stay, more successful they can become. As an aspiring trader in the currency exchange market, it will be difficult for you to control the emotions in both the cases of a win or a loss, but the sooner you avoid it, sooner you will be getting close to success.
Emotions affect the way you trade. If you are not emotionally stable you will never have a calm mind to trade properly. As a beginner, it’s suggested that you can learn to be emotionally stable from your mentor.
3. Borrowing Capital To Trade
When you borrow capital to trade, you are not making an opportunity or a chance for yourself but getting into a trap. If you trade with borrowed capital, you can never be stable emotionally and thus you are close to making some kind of mistake.
When the traders are new and they have had a loss, they plan on borrowing money to recover it. This is a very big mistake. The idea of borrowing money depicts that a trader is imbalanced emotionally because of the loss he. The loss and win is a part of trading. You should have defined a limit of bearing a loss for a day and should not exceed that. You should not even trade the next time with the only purpose of recovering the loss. The next time you trade, you should do it to make the best use of your strategy and your loss will be recovered automatically.
How to Avoid These Mistakes?
The one simple way to rectify or even avoid these mistakes is to make sure that you do not do mistake number 1 mentioned in this post. If you are serious about forex trading, start a forex trading course under a genuine mentor. Hafizzat Rusli is a great mentor to learn forex trade. He has been a very successful forex trader and has created the techniques that he learned with his own experience. His teachings have been a big help to various people around the globe. These students of Rusli are now successful traders. Though there have been rumors against him with headlines like Hafizzat Rusli Penipu. Instead of believing them you should do your research and make the right decision.