Three Common Forex Trading Mistakes to Avoid

Three Common BUSINESS

LegacyFX Introduction

FOREX TRADING MISTAKES TO AVOID

The modern Forex market has a low entry barrier, meaning almost anyone can make trades.

THREE COMMON FOREX TRADING MISTAKES TO AVOID The modern Forex market has a low entry barrier, meaning almost anyone can make trades. However, there are several common mistakes that beginner traders often make that can prevent them from being successful and turning trading into a profitable activity.

Part of risk management strategy involves ensuring a single bad trade will not wipe out more than the trader can afford to lose.

Trading Without a Stop-Loss Order Stop-loss orders are automated processes that can be put in place to exit losing trades before they reach the point of no return and lose the trader more than they can afford. Trading without a stop-loss order puts the trader at risk of losing too much, especially where leverage is involved.

Chasing Losses It can be tempting to let losing trades ride in the hope of a recovery or to make more trades to

try and cancel out losses. Good traders know when to exit and do not chase losses.

Risking Too Much on One Trade Part of risk management strategy involves ensuring a single bad trade will not wipe out more than the trader can afford to lose. This means spreading the risk and making a series of smaller trades.

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