Trading Mistakes 101

This article is taken from the Forex Journal (November 2008 issue).

The author, Steve DeWitt, has been involved with Forex trading for over 8 years. During his years of experience, he has won many international Forex trading contest including “The Biggest Forex Contest” ever. He has also trained over 10,000 people how to become successful at trading the Foreign Exchange markets

• Steve DeWitt takes a look at common mistakes made in Forex trading that cause traders to lose money. He also shares strategies that can be used to avoid making these mistakes.

Huge amounts of money can be made trading Forex. While profits are definitely there for the taking, this article was written to help you learn how NOT to make the common mistakes of a losing trader. Being aware of these mistakes, combined with a solid trading plan can lead you to success more quickly. We see traders make these mistakes time and again. If these losing traders would just take a step back and consider why they are making these mistakes, they could turn the corner and become profitable.

The following list contains the most common trading mistakes that we will cover in this article.

1. Not using a “trading plan”
2. Not having a money management game plan
3. Not using protective stop loss orders
4. Closing winning trades early and letting losing trades run
5. Overstaying your position
6. Averaging a losing trade
7. Increasing your risk with success
8. Overtrading your account
9. Failure to take profits from your account
10. Changing your trade plan in mid-trade
11. Not having patience
12. Not having discipline

• Read the whole report