(level 6) Another 5 Ways to Avoid Losing Money Trading Forex

31. Afraid to Take a Loss - Trading is business. Don't think that a poor trade is a reflection on you. It could be you are just ahead of your time or a commercial order hits the market and temporarily creates a small unexpected move. Again, place your stop beforehand and NEVER increase your pre-determined risk. If it's going bad, it will probably get worse; I think that's Einstein in motion stays in motion
32.Jumping the Gun : Don't be penny wise and dollar foolish; wait for your trade signal to be clear. Put on your trade and give it a decent size stop loss so that you don't get knocked out by random noise. Do trades and don't buy lottery tickets (extremely tight stops).
.33 Over-Relying on Risk Reward : There is zero advantage in risk reward; if you put a 20 point stop and a 60 point profit your chances are probably 3-1 that you will lose; actually with the spread its more like 4 to 1 (from entry point if it goes down 17 points you lose or up 63 you win; 17/63 is close to 4-1).
34. Trading for Wrong Reasons : Because the EUR/USD is going up is not in itself a reason to buy. Buying EUR/USD because its not moving is even worse; you're paying the toll (spread) without even a hint that you will get a directional move. If you are bored, don't trade - the reason you are bored is there is no trade to do in the first place.
35. Rumors : Rumors are rumors almost 100% of the time; think about where in the motion you heard the rumor. If EUR/USD is up 50 points in last 15 minutes and the rumor is dollar negative, well then you missed it. Whenever you trade, determine where in the motion you are entering.

(level 3) Another 5 Ways to Avoid Losing Money Trading Forex

11. Picking Tops and Bottoms - Looking for bargains works well at the supermarket but not trading foreign exchange; try to trade in the direction the price is going and your results will improve.
12. Not Trading Around News Time : Most of the big moves occur around news time. The volume is high and the moves are real; there is no better time to trade fundamentally or technically than when news is released; this is when the real money adjusts their positions and as a result the prices changes reflect serious currency flow (compared to quiet times when bank traders rule the market with their customer order flow
13. Exiting Trades Poorly : If you put on a trade and it's not working make sure you exit properly; don't compound the damage. If you're in a winning trade don't talk yourself out of the position because you're bored or want to relieve stress; stress is a natural part of trading, get used to it.

14. Being Too Smart : The most successful traders I know are high school graduates. They keep it simple and don't look beyond the obvious; their results are excellent.
15. Trading Too Short-term : If you're profit target is less than 20 points, don't do the trade; the spread you pay to enter the trade makes the odds way against you when you go for these tiny profits.