Before you open a real Forex account, you should learn about the most common mental mistakes new traders make.
You'll probably keep making them anyway, but at least you'll realize that you're making them which makes it easier to correct them.
1. Overconfidence
Trading for a living can be a dream come true, but it can also be a nightmare. If you think trading is easy, you're done before you even start.
Trading is not easy. Trading is difficult. Really difficult.
It's hard to stay mentally focused and Stay disciplined. Know that getting into this increases your chances of success dramatically.
2. Lack of emotional control
Your mind always assumes the worst. He does this to protect you from harm. Since there is a possibility that you will lose money and all the psychological suffering that brings, the mind tells you not to trade.
You have to learn how to bypass this self-protection mechanism if you want to become a trader. Talk to your mind. Tell her you're fine doing business. Remind him that you have a stopping point in place and you won't be hurt if it doesn't work out.
Convince your mind that in order to make money from trading, you need to take risks, and that the risks you take have been carefully planned and measured.
3. Deceive yourself
Once you get into a trade, don't try to justify its merits. The market does it for you. The end result of your trade should be stop loss, break even or take profit.
Once you finish a trade, don't dwell on it. Every trade is different and what worked this time may fail next time.
Review it briefly and move on to the next trade.
Focus on overall trading and do not spend too much time on each individual trade.
This will make you an excellent trader. Accept the results of your trades, but don't accept not sticking to your game plan.
4. Jumping gun
Traders constantly jump into the right position at the wrong time because they fear missing out, especially at market turning points.
Don't be afraid to miss the first 25% of the action, then exit after 75%. Getting 50% of confirmed traffic will produce great results.
You also won't have to deal with stopping out and then watching the price reverse and move in your direction.
5. Not thinking about possibilities
Accept your trading losses as a fact of forex trading.
Don't put pressure on yourself or try to unnecessarily manipulate your pre-set stop loss and take profit. Don't expect to be right 100% of the time.
