Common Trading Mistakes Part 1

1. Lack of risk capital: In the market means inadequate capital for diversification and staying power in the market.
2. Not having a trading plan results in a lack of money management. Then, when too much ego gets involved, the result is emotional trading.
3. Inadequate trading assets or improper money management: It does not take a fortune to trade Forex markets with success. Traders with less than $2,000 in their trading accounts can and do trade Forex successfully. And, traders with $80,000 or more in their trading accounts can and do lose it all in a pulse. Part of trading success narrows down to proper money management and not gunning for those highly risky “home-run” type trades that involve too much trading capital at one time.

To learn more on controlling your emotions in the market and proper risk management and money management in trading please register for the Forex Academy on the Memberships page.