Trading with the Forex Market is some of the quickest way to earn cold cash if only done the right way. Novice Traders usually trade with this vast and volatile market with a single objective, that is, to earn big chucks of money at the fastest time.

My Forex Beginning

Looking back at my first experience in Forex Trading, the idea of earning quick money is easier said than done. After years of trading and winning in the Equities Market, I must admit that I underestimated Forex Trading at some extent. However, to my complete surprise, I never expected to deplete my micro-account in just a few days.

My Search for Trading Solutions

I thought to myself, why did I lose all those trades at an instant? Why did I underestimated the movements and fluctuations of exchange rates of the market? Or, was I not ready enough to trade into this market and better yet, stay with Stock Trading? In order to fix my trading strategy to make it profitable, it took me quite a while to study, understand, and analyze completely the Forex Market, but I was successful in identifying solutions to common problems traders usually experience.

Mistake #1: Miscalculating the Market’s Size and Volatility

Trading into the Forex Market must not be underestimated. Therefore, there is a need of a certain degree of self-control and patience. Look at these situations for an instance. When you continuously win on your trades without studying the market or the price trends and patterns; or despite of your efforts of incorporating a scholastic and systematic approach in analyzing exchange rates, but instead, the market went against your trade; or when your emotions out weights your ability to think and decide logically, you are well on your way to making a very expensive trading error.

Mistake #2: Impulse Trading

Based on my personal experience, every trader shall be patient in trading specifically in studying, understanding, and analyzing the Forex Market. I must admit, this mistake is undoubtedly the main cause that led to depletion of my first Forex Trading account. Allow me to give you some solutions to this problem. For a start, evaluate your expectations and objectives in trading by identifying if they are specific, measurable, attainable, realistic, and time bounded.

Mistake #3: Greed

Novice Traders must not over trade. Despite of winning, you must not get yourself used in overtrading because it could surely cloud yourself from setting up profitable trading positions. Allow me to give you some advice with regards to this matter. For a start, you must be careful of using trading systems that using uses “Stacking” as its main strategy because it might just be you one-way ticket to zero.

Trading with the Forex Market is a very wise decision especially if you’re looking at the market’s size and volume and the profit opportunities it may offer. However, one must also keep in mind that in every opportunity there are always threats and risks. The best advice I could probably give to a Novice Trader if you want to become successful in this field is to be patient in studying, understanding, and analyzing the Forex Market.

Author's Bio: 

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