Three mistakes forex traders make
Forex is categorised as a high risk investment because 90% of the traders wants to make huge amount of profit taking a single trading position. Having said that, risk in forex could be effectively managed by adopting a risk management strategy.
Below are the common mistakes made my forex traders
1) Traders trade with all the money they have : When you trade with all the money that you have, it will create unnecessary pressure and that makes you an emotional trader. You would always get it wrong even if you have a good trading strategy.
2) Traders do not have a unique trading strategy: Most of the trader lose because they use the same resistance and support line or levels. They trade with no uniqueness. A unique trading strategy would not make you enter into trade at all times. If the market trade is not in conformity with your strategy, you don't take trading positions!
3) Multiple trades running at the same time: Do not take Euro, JPY, Pounds and USD trades at the same time. Taking four trades at the same time will make you lose focus because you will have to deal with four different price movements. The thought is to maximise profit but such strategy could make you lose lots of money.