(level 2) Another 5 Ways to Avoid Losing Money Trading Forex
6. Demo Accounts : Broker demo accounts are a shill game of sorts; they're not as time sensitive as real accounts and therefore give the impression that time-sensitive trading systems, such as short-term moving average crossovers, can be a consistently profitable trade; once you start dealing with real money, reality is quick to set in.
7. Trading During Off Hours : Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.
8. Trading a Currency, Not a Pair Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
9. No Trading Plan - "Make money" is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don't have an edge, you don't have a plan, and likely you'll wind up a statistic (part of the 95% of new traders that lose and quit).
10. Trading Against Prevailing Trend : There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you're trading against the trend.
7. Trading During Off Hours : Bank FX traders, option traders, and hedge funds have a huge advantage during off hours; they can push the currencies around when no volume is going through and the end game is new traders get fleeced trying to trade signals. There is only one signal during off hours it is better to stay out.
8. Trading a Currency, Not a Pair Being right about a currency is half a trade; success or failure depends upon being right about the second currency that makes up the pair.
9. No Trading Plan - "Make money" is not a trading plan. A trading plan is a blueprint for trading success; it spells out what you see your edge as being; if you don't have an edge, you don't have a plan, and likely you'll wind up a statistic (part of the 95% of new traders that lose and quit).
10. Trading Against Prevailing Trend : There is a huge difference between buying cheaply on the way down and buying cheaply. What was a low price quickly becomes a high price when you're trading against the trend.
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