Forex Trading Mistakes - The Two Major Mistakes Novice Traders Make
By kelly price
Forex mistakes, there numerous ones but here I am going to look at the two most common ones.
The two most common forex mistakes are..
1. Forex Robots Track Records Can Be Trusted
Believing the track records presented with them will bring them profits, when there mostly made up simulations and the system has never been traded!
Seen a track record and think the forex system may work for you?
Well read the warning and you will see why they probably won't!
"CFTC RULE 4.41 - Hypothetical or simulated performance results have certain limitations. Unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown".
A track record devised knowing the closing prices and in hindsight - well I wouldn't trust it and neither should you.
Most forex robots rely on clever copy and no one questioning the fact they have never even been traded.
Its sounds great put your feet up, have a Pina Colada and relax in the sun, while your forex system (that only cost you a few hundred bucks) makes you thousands a month, alas its not that easy.
Don't fall for the myth of forex robots - it's a big forex mistake!
Let's move on to mistake number 2...
2. You can Make Money Forex scalping or Day Trading
Again another huge mistake is to believe all the people online telling you they can.
Of course they all have simulated track records and you already know how much use they are!
It doesn't work - all short term volatility is random, you can't get
the odds on your side, so you will lose and this is obvious if you think about it:
Millions of traders, all with different motivations, systems etc come together to make a price and to judge what this vast mass will do in an hour or two is rubbish, you can't.
Don't fall for the myth of forex day trading, or you will lose your equity and lose it quickly.
The 2 forex mistakes above are made by traders who are greedy, naïve, lazy or think forex is easy. and of course it isn't, that's why 95% of traders lose!
Forex is hard - but if you have the right mindset and get the right forex education, you can make a great income which in many instances can be life changing.
To enjoy currency success, do it on your own.
Get the right forex education and learn forex the right way and you will be well rewarded for your efforts.
