Best Online Trading Tips: 4 Currency trading Mistakes That Could Cost You $30,000

A few months ago I had the opportunity to work with a Fx trader who was well funded but he was not able to get the profits he wanted. He contacted me after reading a few of my best online trading articles. After several meetings we were able to find a suitable trading strategy and money management plan to fit his trading goals.

However, he had lost $30,000 from his hard earned money and he was been a victim of the psychological manipulation of the market.
During my meetings with him I was able to detect the main mistakes he was committing and that were preventing him to profit from the market. In this article I will be sharing with you the mistakes I saw he was committing that cost him $30,000 in trading losses.

Not using the right money management and risk management techniques:
One of the primary issues this trader had was that he was utilizing the wrong money management techniques. People make you believe that making the most pips is really what really counts, however I think differently. A pip is a unit of measure which is used in Forex currency trading and the number of pips you produce in a trade is only determined by price fluctuations. Conversely, when you use percentages as goals instead of pips you will be able to manage and measure the performance of your trading account.

Allowing your emotions to cloud your judgment:

Letting your emotions get on the way is the best way to lose all of your trading funds. Whenever a trader is manipulated by his emotions he is more likely to make irrational trading decisions, and irrational decisions lead to losses.The best way to control your emotions and become a disciplined trader is by following a strict money management plan and goal oriented trading strategy. Building yours should be one of your first priorities as a FX trader.

Over trading leads to failure:

This is one of the most detrimental and expensive trading mistakes. Over trading is defined as the action of trying to find trading opportunities when they are not there. Sad but true, over 80% of all traders I've had the chance to trade with were over trading. In the past I have compared over trading with an addiction like alcoholism. Someone who has a drinking problem never admits that he has an addiction nor does a Fx trader who is over trading. The only way for someone who over trades to become profitable is to admit their mistake (over trading mistake) and look for a way to fix it.

Looking for instant gratification by trading low time frames:

I don’t have anything against scalpers or those that like to trade low time frames, I know low time frame traders who make a killing in the Forex. The problem is that scalping is not for everybody. Many people become scalpers for the wrong reasons and many times they just want to make money quickly. Unfortunately, this is not how successful Forex traders roll and I have discovered that looking for instant gratification is likely to lead to big disappointments.
Finally, make sure you concentrate on putting all together and don’t rush to open up a live account if you are not ready.

Best wishes,
Jay Molina