Best Online Trading Tips: 4 Forex currency trading Mistakes That Could Cost You $30,000

A few months ago I had the chance to work with a Trader who was well funded but he was struggling to achieve the profits he wanted. He contacted me after looking at a few of my best online trading articles. After several meetings we were able to find an effective trading strategy and money management plan to fit his trading goals.

However, he had lost $30,000 from his hard earned money and he was been a victim of the psychological manipulation of the market.

During my meetings with him I was capable of detect the main mistakes he was committing and that were preventing him to profit from the market. In this article I will be sharing with you the mistakes I saw he was committing that cost him $30,000 in trading losses.

Not using the right money management and risk management techniques:

One of the biggest issues this trader had was that he was using the wrong money management techniques. People want you to think that making the most pips is really what really counts, however I think differently. A pip is a unit of measure which is used in Fx trading and the number of pips you produce in a trade is only determined by price fluctuations. In contrast, when you use percentages as goals as opposed to pips you will be able to manage and measure the performance of your trading account.

Allowing your emotions to cloud your judgment:

Letting your emotions get on the way is the best way to lose all of your trading funds. When a trader is manipulated by his emotions he is very likely to make irrational trading decisions, and irrational decisions lead to losses.The best way to control your emotions and become a disciplined trader is by following a strict money management plan and goal oriented trading strategy. Building yours should be one of your first priorities as a FX trader.

Over trading leads to failure:

This is probably the most detrimental and expensive trading mistakes. Overtrading is understood to be the act of seeking trading opportunities when they are not there. Sad but true, over 80% of all traders I have had the opportunity to trade with were overtrading. Previously I have compared over trading with an addiction like alcoholism. Someone that has a drinking problem never admits that he has an addiction nor does a Fx trader who is over trading. The only way for an individual who over trades to be profitable is to admit their mistake (overtrading mistake) and look for the right way to fix it.

Trying to find instant gratification by trading low time frames:

I don’t have anything against scalpers or those that like to trade low time frames, I know low time frame traders who make a killing in the Forex. The problem is that scalping is not for everybody. A lot of people become scalpers for the wrong reasons and quite a few times they just want to make some money quickly. Unfortunately, this is not how successful Forex traders roll and I have discovered that looking for instant gratification is likely to lead to big disappointments.

To summarize, ensure you concentrate on putting all together and don’t rush to open up a live account if you are not ready.

I'll be posting more best online trading tips and ideas on my upcoming articles.