When you decide to evaluate your savings on the Forex market, you should consider as many mistakes as you think about the money you will get. If you know that you have a chance of making mistakes, act accordingly and develop your strategies in this direction. So you can take care of that point and control your chances of missing. But if the mistakes come from ignorance and you do not care, you’re probably going to get caught up in somebody and you’ll be lost.
Even if you are more likely to make mistakes in Forex, you still have the opportunity to fix the risks and limit the risks. Among the financial markets, forex is the best at this point. You can stay away from mistakes with the knowledge and experience you need with orders. The most important point is if you understand why the topics we will talk about are defined as errors. Briefly, every step you take in the forex market is conceptual and you have to act accordingly. But you will be successful in this way and benefit from the fortunes of the forex market.
Now let’s examine together 10 of the most common mistakes made in forex and why they cause you to lose:
Unrealistic Profit Expectations
One of the biggest mistakes about the Forex market is the unrealistic profit expectation. Forex is a market where you can earn high profits; But he will not give you this. So you can not break the corner with a few operations. At the same time, you need to develop yourself in the sense of knowledge and gain experience. Buying and selling from the top and bottom to get a high profit, entering large transactions that are incompatible with your guarantee; It will not bring you a high profit. On the contrary, by increasing the risks, larger losses will cause you to live.
Investors who want to make a high profit think that leverage rates will give them what they want. But one of the biggest mistakes made is the use of high leverage. Using high leverage means increasing the risks in the same way. If you do not have a good experience, leverage rates will be your biggest risk factor. Heleki’s eyes can be forexed by investors who have plagued money, living with great losses due to leverage. Remember that a process always carries a risk and you have to take as much risk as you can.
Do not look from a wide window
Yes, you are making money from short-term transactions on the forex market; But you should not forget that you have to look at it from a wide window. Even if you are trading in the short run, you should still carry out your analysis taking into account past price changes. One of the common mistakes made in Forex is the execution of transactions on short time-slice price charts. Traders usually focus on 5 to 15 minute charts. But it must be known; Long-formed formations, on the contrary of short-time formations. In this case, too, the investor thinks that he has an opportunity and creates a position and faces frustration by turning everything into a reverse.
You need to create your position by taking into account the longer time horizon charts, such as the 4-hour price charts. After reviewing the short time slots, take a look at the long-term changes and strengthen your expectations accordingly.
Determining Support and Resistance Points with Assumptions
The support and resistance points on the Forex market give you valuable information. But hasty traders set up support points on their anticipations or assumptions. This is the biggest mistake you will make. You can easily identify these points by analyzing the price movements that normally occur on the market. Traders often make mistakes when they see a rise in the price is to break the support point and go to the sale. This process of guessing will sometimes cause you to lose even if you hold it.
You can easily apply the analysis on your trading platform. If you do not know how to do the analysis, you can learn shortly by using free training facilities. Especially with the training videos, you can learn the analysis correctly and you can learn the practical information you get with the demo accounts.
Doing sloppy processing
You must do everything you do on the Forex market, with care. So you should not do anything to make it happen. Instead of doing so much, you can make better profits by doing well thought-out, analyzed transactions. In order not to waste your savings, consider carefully all the actions you have made. Take your positions in all directions, follow the instructions to be explained, analyze price graphs at different times. A few transactions that you will do in this way will yield a better return than a continuous purchase.
Being disciplined is the most important point to follow a stable path while investing. If you set yourself a path and do your investment accordingly, you will get much better results. If you make a position by making a sudden decision against the price changes you see, you increase the risk and increase your chances of losing.
Thinking the market is wrong or wrong
There are investors who regard the rise or fall in the market as meaningless without investigating the causes. These investors think that the market is faulty and try to create a position in the opposite direction. For this reason they also face losses. You must remember that; The market is never wrong nor true. All of the movements that come to the square have a reason. You should not trade unless you are investigating the reasons for the rise of the dollar, the fall of gold, and the fluctuating course on the market.
We refer to the fact that we must act in a planned manner among the proposals that we continuously make to the investor. When you decide to invest, you must acquire an investment objective and prepare a plan to achieve it. You should apply this plan steadily after the process starts. Changes you make later may take you away from you. Of course, there are situations that you can not account for and points that you are mistaken. Once you understand your mistakes, you should revise your plan accordingly.
While doing your plan; You have to consider details such as your pip targets, the losses you can undertake, what you will trade with, the maximum number of positions per week, month and 3 months. You must identify all of these and formulate your plan as a study program of the same student. You should never forget that you are quite important for a long-lasting and stable profit.
Moving Confirmations Unexpectedly
There are 2 confirmations that Forex traders should wait for. The first of these is to act on assumptions and not wait for the price movement. The second is that the candlestick of the time zone you are watching closes below or above the determined level. Here, the support, resistance and breakpoints are a challenge, once again confronted. To be a successful investor, you must wait for these confirmations and perform your transactions patiently.
Hurry to get profit
After you have created your position, you have to change your goals and get the profit by ending the transaction before your position has matured yet. You may have made such a decision because of the unexpected news. But it’s unnecessary to try to get profit by making excitement while everything is on the same course in the market and going as you expect. And even if you do not see much change in the short span, it is an act you can regret in the long run.
It does not cause you to get a bad result; But it will cause you to change your risk / benefit rates by not hurrying to end the transaction. For this reason, all your plans may change. You must maintain the goal that you set when creating a stable position until the end of the process. You should follow the developments in doing so. If you encounter an unexpected risky situation, you should end the transaction.
Play with Stop Points
It is a big mistake to play with stop points after you have created your position as it is at the target of profit taking. Particularly inexperienced investors play the role of stoplas in order to lose. The most important thing to note and understand here is that you do not accept that you have made a mistake. It is the right move to realize your mistakes and fix them. If your process is properly structured and
If you have identified the risks correctly, it is pointless to play with your stopping points. Because the reason for putting this stop point at the beginning of the process is certain. If you change it later, it may cause you to move away from the way you plan to reverse the process.
Ignorance and Inexperience
Having the knowledge and experience is a valid point in all investment markets including forex. When you decide to invest, you must first learn how to forex and understand the logic of transactions. However, those who have glared at the sight of money quickly rush to earn money by entering the market. At this stage, they do not bother to recognize the market. If this is the case, they will face losses instead of earnings as expected. Some investors even say that it is impossible to find an error in the market and to make money on the market. This is the clearest indication of your lack of knowledge and inexperience.
Trainings by Forex companies are provided free of charge and on the internet. Why do you prefer the hard way when there is such a convenience? With Forex training, you can quickly increase your level of knowledge and experience. You can take advantage of those praiseworthy features that you hear when talking about the Forex market. We do not want to throw away the money we collect or invest to make it difficult, do we? For this reason, do not rush and first improve yourself by looking at the trainings.