45 ways to avoid financial losses

[Gulfstream]

45 ways to avoid financial losses in FOREX

1. Lack of knowledge. Most beginners do not want to spend their time on understanding what drives the market (fundamentals).

2. Excessive trading. Frequent opening positions with tight stops and small profits only brings money to your broker. The desire to "just" make a hundred bucks a day with a small profit where possible is a very losing strategy.

3. Use of borrowings. Loan is a road to the two ends. The broker wants you to use as much money as possible because the size of the position determines the number of spread. The greater the size of the position, the greater the spread the broker earns.

4. Someone else's opinion. Professionals sell by themselves, they make their own decisions and never let others make decisions for them. There is no middle ground - either you're trading by yourself or someone trades for you.

5. Stop loss. The arrangement of hard stops is a direct road to disaster. The free stop loss provides a better chance to end the transaction with a profit.


6. Demo account. Demo accounts provided by brokers are the "stool pigeon" in order to entice customers. They are not so "sensitive" as the real account and a demo account includes a lot of options that do not exist on a live account. For example, the intersection of the short moving average may work well on a demo account, but on real one - no.

7. Trading in the quiet hours. Bank brokers, traders, trading options, hedge funds have a big advantage in the quiet hours, when the market is not active. They can move the market when the volatility is not too high, forcing newcomers to open positions on the signals. During quiet hours there is only one signal: stay away.

8. Trading currency, not a pair. Currency trading in the transaction is only half of deal. The success or failure of the deal depends on other currencies, which together constitute a pair.

9. Trading without a plan. "Making money" - is not the plan. Trading Plan is a program for success. It must include the maximum loss in the transaction, otherwise it is not a plan and you will be another addition to the statistics (95% of beginners lose money and go away from forex forever).

10. Trading against the trend. There is a big difference between buying at the bottom and buying lower at the bearish trend. What used to be the lowest price, can quickly become a high price in a downtrend.

[Makaveli]

Without using any trading plan we should never enter in this business many traders just try to make money from the market even they not want to learn something first for their trading I think we should learn step by step first in this market our good process will bring good result also in trading ..

It is bad idea to think about doing that in the forex trading market. Because then we will be like the person who is actually heading to somewhere without no compass. We need to have a trading plan and then we have to be disciplined enough to stick to that trading plan and then risk management plan as well.

[Darkhorse]

7. Trading in the quiet hours. Bank brokers, traders, trading options, hedge funds have a big advantage in the quiet hours, when the market is not active. They can move the market when the volatility is not too high, forcing newcomers to open positions on the signals. During quiet hours there is only one signal: stay away.

I think and guess this is not for the traders that are practicing the trading with the higher time frame and using the long term trading strategy. Because with such trading strategy. We can follow the market on the longer time frame and even when the market is at it's quiet time we can still have the market move in our favor if we are sure of what we are doing.