Why do many Forex traders lose money and what are the biggest Forex Trading mistakes?

In the following you can find some of the biggest mistakes that are made by a lot of Forex traders:

  • They do not maintain trading discipline
  • They do not have a trading plan
  • They fail to adapt to the Forex market
  • They learn through trial and error
  • They have unrealistic expectations
  • They use a poor risk and money management and do not fully understand and implement the risk/reward
  • They trade with indicators and other fancy tools
  • They do not understand position sizing
  • They do gambling instead of trading
  • They allow emotions which are clouding judgment
  • They do not have patience
  • They do not trade higher time frames
  • They are too involved and overtrade
  • They do not take profits

A simple way to avoid some of the mentioned mistakes is to build a relationship with other successful Forex traders who can teach you the trading discipline that is required by the asset class, including the risk and money management rules that you need to trade the Forex market. With that learn process you will you be able to plan appropriately and trade with the return expectations that keep you from taking excessive risk for the potential benefits.