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The beginner mistakes

Beginner's mistake in forex trading

If you manage to avoid these 10 cardinal errors, you are already on a very good way as far as forex trading is concerned.

Trading is easy, calming and even relaxing. Sometimes it is boring. You can anticipate developments, maximize profits, and contain the risk of loss.

This is what it looks like, if you already have a lot of experience. Newcomers, on the other hand, are excited full of expectations, maybe even overstated. In this phase, most mistakes happen.

Many newcomers are already giving up. But statistically, the profits only turn on afterwards. In order to If you survive the initial phase unscathed, we have summarized the ten most common trading mistakes.

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1. Too high expectations

Dubious advertising, which promises billions in profits right from the start, has already driven so many newcomers into ruin. The experience comes only with time, that is in the case, with the years.

And with the experience only slowly the success sets in. who If you do not lose your capital at the beginning, you can already see that as a success.


If you start with a horrendous earnings expectation or go to Forex to settle debts, finally buy the dream car or with the eager desire for a better life in, your trading will not be successful, but only characterized by the pressure to succeed ,

This pressure leads to ill-considered, premature actions. It is so important in forex trading to bring serenity.

2. Risky trading

When trading forex can because of the often very large trading volume per
position even small price fluctuations
lead to considerable profits or losses.

The protection of one's own capital is
that A and O in foreign exchange trading.

Risk minimization is a key success factor.


It is almost more important than profit maximization. It is better Doing fewer trades and watching more. Not the greed should guide you. Rather, it requires serenity that is free from emotionality.

A concrete strategy for minimizing the risk is hedging. In doing so, you open up a new position that matches the existing one behaves exactly contrary. This way you can absorb unexpected price fluctuations or reduce the resulting losses or even make up for it.

With the help of hedging you can secure long positions by short positions and vice versa.

3. Little experience

Experience, market knowledge and a sense for the developments of the
foreign exchange market are essential
for the trading. It takes years, to mature.

A basic understanding However, there is already something about the topic before getting into trading Business of essential.

Many brokers provide their customers
for this purpose with free information material, such as dictionaries with
technical terms, instructional videos, articles, tutorials, Online seminars etc. It is recommended to use as
many such offers as possible.

During the learning phase you should not gamble your own money, but
use a demo account. Most brokers make theirs Traders such a game account available for free. Mostly contains It is 10,000 euros play money
and can be recharged at any time. With such a demo account you can
take all the strategies under to test real market conditions, without even
the slightest Take risk.

It is advisable for several months to a year only with the demo account to "play" and only then to use real money. Furthermore, it is very helpful to observe the strategies of experienced traders and of them to learn. But
you should not copy the strategies of others, because each person is different and pursues different goals. Rather, you should develop your
own trading strategies and always optimize them.

4. Trading without strategy

To trade aimlessly in the blue, can bring in a random win. In the long term, however, this behavior is in the foreign exchange market Sure to fail.

After gaining all knowledge through videos, webinars, On-line lectures,
etc., you should start with the demo Practice account and work out strategies. You can use these to test the gaming account without risk
under real conditions.

Thus, you can see where there are still gaps and what you improve should. Only after your strategies are sophisticated, you can start trading with real money. All actions should be good planned and coordinated. It is true, many To include aspects in the planning, among others Developments of the markets as well as events affecting the markets could strongly influence.

It's all about your decisions in
terms of position sizes, time
horizon, hedges and exit options.

5. Leapiness

So abruptly, the foreign exchange market does not change your strategies suddenly have to throw overboard. To trade you need strong nerves.

Here it is important to keep your feet still for minor shocks or unplanned events. Those who let themselves be guided by emotions in such situations will perish.

Crackiness and over-the-top action are out of place in Forex. You should trust your decisions to stick to their strategies.

Only when an actual necessary change is indicated is it necessary to act accordingly. When that is the case, they must recognize themselves in good time. But that brings the experience with it.

6. No stop-loss marks

Trading with Stop-Loss (SL) is essential for risk management, especially
for traders who are not are long in the market. With SL you can specify
when a certain position should be closed. Is a trade going? not according
to your ideas, SL is a kind of emergency brake to prevent the total loss.

If it is a buy order, the SL becomes a bid price completed. For a sell order, it will be executed at the ask price.

Despite the most accurate observations, the market can move in directions you did not plan or did not even think possible. That can happen overnight. Imagine yourself Before, you go into bed without any suspicion and think everything in best Order. The next day your trading account is blank. Alone To avoid this, stop-loss is recommended.

Although this may also be reduced profits, but the squirrel feeds slowly.

A smaller win is better than losing everything.

7. Adhere to loss positions

Do you know that? They have planned for a long time, thought through everything, put a position and are now waiting for the well-deserved success.

They expect him with anticipation, but then it will be different. That can not be true! The course just has to take the specific direction, otherwise it will not work! But he does'nt do it.

You do not want to admit it and stick to the position, too if there is already no hope. This stubbornness is too a purely emotional story in professional trading out of place.

8. Underestimated leverage

 Instead of financing position exclusively with equity, traders can also use a lever. This allows them with little own money to move large sums of money.
So you can, for example, with only one Euro up to 400 euros and trade with
100 euros 20,000 euros.

This is particularly appealing to retail investors. In fact, the approach offers
a huge opportunity. Little people can suddenly grow big on the Froex mimic. That's a great thing, but it's also incredibly risky. The missing sum is actually paid by the broker himself. He leaves in advance. If the position proves to be
a rivet, that is used Capital away plus the loan of the broker. There is nothing wrong with that Lever. Only you should use it sparingly and deliberately. It recommends to choose a stake plus the lever whose loss you can actually absorb.

9. Insufficient overview

In the foreign exchange market, it is important to understand the global
context and to catch even the smallest movements of the market. This means listening to news every day, reading several trade magazines, browsing through forums, not taking the market
out of the market Keep your eyes open and alert for 24 hours. Being a trader is a full time job. After all, it's about investing money in a good moment. By "good moment" is meant a point
in time when the market reveals clear structures.

This increases the chances of winning and reduces the risk. If the market
is diffuse, you should hold back and wait. That too must be learned. For some starters, waiting may be too boring. At first you will probably find it hard to sit still. But later it becomes a habit.

10. Unobserved spread

Newcomers to the business often forget the spread. The spread is
the difference between the bid
price and the ask price. The latter
is the lowest price at which the
broker or the respective bank sells
the foreign exchange to the traders. The ask price may differ from the actual bid price, which is apparent in the overall deal. The spread is therefore the ask price minus the bid price. Many investors who are new to the market forget the spread or know nothing about its existence. Of course, they reckon with the bid price as a basis and then wonder about the results of their trades. If they often lose consecutively, the trading account is empty even faster than previously calculated. Likewise, the profit is not as abundant as expected at the beginning.

Trading is a profession or a vocation
A profession that also wants to be learned. For many, it is much more, it becomes a vocation, a lifestyle. Who is created for the foreign exchange market, there will also have a lot of joy.

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In particular, the information provided does not constitute investment advice or investment brokerage. It does not contain a solicitation to buy or sell foreign exchange or other investments. Foreign exchange trading involves considerable risks; a total loss of the capital invested is also possible. Anyone who trades in foreign exchange must familiarize themselves first with the risks. The analysis, information and the service offered are for illustrative purposes only, the use is at your own risk. Past results are no guarantee of future results. The owner assumes no responsibility for any losses on the foreign exchange markets or other markets and investments.


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