People often say more than 90% of forex traders lose their money during the first few weeks of forex trading. When you think about it, you might come to the conclusion that forex is not a wise investment choice. If only 10% of investors looking for money, then there must be something wrong with forex as an alternative investment.
But we must not only see no reason to analyze the daunting statistics. Many investors start trading forex forex extreme bring hope to become millionaires overnight forex. And to do this, forex investors are usually armed with the wrong attitude and approach to the wrong direction in trying to make currency trading.
So what are the three major mistakes newbie trader that affect them become high probability of losing money in the first few weeks?
Overtrading
Most novice forex traders happy. They are eager to test the strategies they have been able to refine the demo trading. They want to know whether strategies that have proved profitable in trading demo can also prove to be beneficial in the real accounts.
With every opportunity they see in the market, they get the itch to get a position so that they do not want to lose that opportunity. And before they knew it, they have too much hold positions in the market. The strategy they have been tested in a demo trading in the past will work perfectly that they never trigger-happy in entering the position in each currency pair they saw. So, they finally overtrade. But when the open positions have been added, and the loss of floating, now they are depressed by the continued equity account is reduced, more and more negative.
Impatience
Often the forex trader's worst enemy is herself. He has tested a trading strategy. He has a trading plan is prepared. All options have been mastered. But why are they still end up with burning an account?
The answer probably lies in the inability to follow a trading plan based on his trading strategy. This usually happens with newbie forex investors who can not wait to set the accuracy of time and be very patient. The market can not dictate. It is the task of forex traders to read the market, did not anticipate his movements.
When a forex trader started forward and entered the market and try to predict what the market will do next without a clear indication in the technical analysis, this will be the beginning of the fall of forex traders.
Over-leveraged
Leverage can make profitable forex trader. Unfortunately, leverage is a creature that can make the novice Forex investor could lose all their money.
A lot of newbie forex forex trading investors to come to the wrong place with the idea that forex can make them rich overnight. Mathematically, yes it can. And it is leverage that allows to double your account several times in a short time. But statistically, it is highly unlikely because a double-edged sword or leverage the equity can also delete your account in no time.
Greed and capital management that is not true in the end will lead to over-leveraged position for forex accounts. Newbie forex investor must learn that to get rich in forex, the right attitude should be observed. To stay in the game again, the true goal should be targeted and strict discipline must be followed. Then forex will take you towards your financial freedom.