forex online trading

Forex Online Trading – 5 Common Mistakes

Forex Online Trading – 5 Common Mistakes ( Courtesy of HenryLiuForex.com )

Any type of financial trading, whether it's trading stocks, futures, or options have its risks. Forex online trading is no different. The key is to manage those risks and one way to do this is to be aware of common mistakes many traders make and learn how to avoid them. This article will give you the inside scoop on five common forex trading mistakes so that you can avoid them at all costs. Most beginners start trading like they have a blindfold covering their eyes and they mistake after mistake. Right now you have the opportunity to be different and remove that blindfold so that you can start seeing things clearly once and for all!

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Mistake One – Choosing The Wrong Broker The broker you end up choosing will often be your biggest asset or biggest liability. Since all trades need to be done through a broker, it's essential that you pick the right one. If you fail to do this, the consequences can be absolutely devastating. The forex market has become more regulated but still unscrupulous brokers do exist. It's important to research thoroughly before you choose a broker. A referral from other successful traders is a great way to safeguard against choosing the wrong one.









Mistake Two – Trading Multiple Pairs When you are first beginning forex online trading it's important not to trade too many pairs at once. Currencies are traded in unique pairs and each pair of currencies has different “qualities”. If you trade numerous pairs you can go crazy trying to understand and react to how each pair behaves. Instead, it's a wise decision to stick to trading only one pair such as the EUR/USD. Continue to trade until you are successful with that pair and then you can either stick to just one pair or trade others simultaneously. But ideally, it's always best to trade only one pair at a time.









Mistake Three – Using An Unproven System Everyone likes to think they can invent the next best forex trading system. But the focus should be on learning a system from someone or a team that is actually profitable. Don't just blindly follow anybody's system. Look for a system that is easy to follow, in-depth, comprehensive and step by step in nature. Forex is complex but it doesn't mean the trading system has to be. So keep things as simple as possible but no simpler!











Mistake Four – Not Using A Demo Account When you are learning a new system don't start off putting your money on the line. Use a demo account to begin with until you are confident that you can trade successfully using the system. And remember, if you can't get the system to be profitable when you are using a demo account, don't go live with your account until it is.









Mistake Five – Stopping The Learning Process The day you stop acquiring information and resources to help you become a better and more successful trader is often the day when most people make their greatest mistakes. The learning process is never over. The only day it should stop is the day you hang up your forex online trading boots and retire. Until that happens, you must continue to learn, learn and learn!







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