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Common Mistakes Made by Beginner Forex Traders

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Common Mistakes Made by Beginner Forex Traders

If you are failing to make money through forex, it probably has nothing to do with the strategy. And the root cause of that is the mistakes most of you are currently making.

And these mistakes are going to cost you a huge fortune if you don’t correct it right now.

In this article, I am gonna tell you the 4 common mistakes every beginner forex trader makes.

Mistakes are just a part of successful trading and everyone does it.

I, myself made many mistakes at the start of my forex trading career and those are the same mistakes that I see most of the beginner traders make.

I saw most of my students made and repeated these same mistakes which caused them to money in forex.

All the beginner trader does the same mistake, some of them give up trading after that and some of them are trapped in a loop which they are not able to come out of.

Below are the top 4 mistakes which every beginner forex trader make and you might be one of them,

so go through it and see if you are not making the same mistake.

1) Choosing the wrong trading style.

The very first mistake which I made was, choosing the wrong trading style.

When I first started trading I had no idea about what forex trading is, I just saw someone with luxurious cars and a great lifestyle selling a course and so I bought it.

I had no idea if there were any types of styles in forex trading.

But after losing a huge amount of money and doing some research about forex I came to know that there are different types of forex trading styles and each style is meant for different people.

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Finally, after knowing about all the different types of trading styles, I came to know that until now I was headed in the wrong direction.

I was into a trading style which was not meant for me.

And many of you must be committing the same mistake but you won’t even know it,

So, it is imperative for you to know if you are using the trading style which is most suitable for you.

Here is How can choose the right trading style for yourself

2) Wrong mindset

This is the biggest problem of all the novice traders right now.

Everyone wants to get rich quick.

And it’s not your fault.

All the gurus and mentors have portrayed forex trading as a way to get rich quick.

Forex is shown and advertised as an industry where you can become rich overnight.

Like most of you even I came into forex with a get rich quick mindset.

This is because the forex traders or gurus who sell their course portrayed forex trading in that way and it caused us to develop that mindset.

I saw traders flashing their Lamborghinis Ferraris and it caught my attention.

Most of these guys will show you all the fake lifestyle and all the rented cars and earn money through selling cars.

Or even if someone is genuine, and all the cars and lifestyle he/she is showing is real.

The thing is there was a lot of struggle and hard work behind what he/she has achieved or has now.

It didn’t come in a day, it took time.

But most of the beginner traders get into forex with the wrong mindset and assume forex to be a get rich quick scheme which it is not.

I want you to understand,

Patience, persistence, and discipline is the only key to get success in forex trading.

3) Over-leveraging your account.

Let me tell you how I once lost $5000 in a single day.

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The key to that was overleveraging and if you wanna lose $5000 or 100% of your account in a single day as I did, Go and overleverage your account the result will be the same.

Not only me but also a lot of other forex traders, keep on telling you that you should not overleverage your account.

Overleveraging your account will always lead to a disaster no matter what.

Or even if somehow, you made a profit by overleveraging your account,

it was only because you were lucky enough this time and this won’t always happen.

So the next time you overleverage, your account is destined to get blown

Because you weren’t actually trading, you were just gambling by overleveraging your account.

Trading is a long process that takes time to master, and overleveraging is like a shortcut beginner traders try to take and 99% of times end up making them lose their account.

The main reason why most beginners overleverage their account is that they have unrealistic expectations from trading,

They are always wanting to become rich overnight, which is not going to happen, and so for these unrealistic expectations, they end up overleveraging their account and blows it.

You need to trust the process of trading and also understand that things take time in forex.

Furthermore overleveraging your account is a mistake that you shouldn’t make if you are really trying to be a forex trader.

So, always make sure you follow a proper risk management plan and use the leverage sensibly.

4) Not sticking to any one strategy

This is the most common mistake which almost every forex trader makes.

Whenever you buy a forex trading course or learn a strategy online

after you first trade through it you most probably make some profits at first but then you start losing through the same strategy.

When you start losing, you try to add something of your own to that strategy.

After this, you again start earning profits and then after some time you again start loosing with the same strategy.

It probably makes you feel that this strategy does not work make you abandon that strategy.

Then you search for different other strategies and the same thing happens again.

Now you are stuck in a loop where you are just searching for a strategy that never fails.

By doing this what you are trying to do is, to look for a holy grail strategy.

Trust me, a holy grail strategy does not exist.

You just need to look for a strategy that works

and how to know if a strategy work is by backtesting it with the help of historical data.

After you find a strategy that works, your goal is to master it.

Conclusion –

These mistakes are very very common and the main reasons for your failure in forex trading.

It is very crucial for you to pay attention to these mistakes and make sure you don’t repeat it again.

Because a mistake should stay a mistake and not become a habit, but if you don’t correct your mistake soon it eventually becomes a habit.

So, make sure you correct these mistakes in the early stage of your forex trading career.

After you start correcting these 4 mistakes you will see a sudden change in your trading career.

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