- Reviewed by James Stanley, Nov. 24, 2021
Human error in the forex market[1] is common and often leads to familiar trading mistakes. These trading mistakes crop up particularly with novice traders on a regular basis. Being aware of these errors, can help traders become more efficient in their forex trading. Although all traders make trading mistakes regardless of experience, understanding the logic behind these mistakes may limit the snowball effect of trading impediments. This article will outline the top ten trading mistakes and ways to overcome them. These mistakes are part of a constant learning process whereby traders need habitually familiarise themselves with them to avoid repeat wrongdoings.
The video included highlights six trading mistakes, however there will be more covered in the article below. It is important to note that trading comes with the inevitability of loss, but these may be minimised with the exclusion of human error/mistakes.
Prior to committing to forex trading, consider these 10 widespread trading mistakes you must evade as they contribute to a large proportion of unsuccessful trades.
Mistake 1: No trading plan
Traders without a trading plan[2] tend to be haphazard in their approach because there is no consistency[3] in strategy. Trading strategies have predefined guidelines and approaches to every trade. This prevents traders from making irrational decisions due to adverse movements. Devoting to a trading strategy is key because veering away may lead to traders plunging themselves into unchartered territory with regards to trading style[4]. This eventually results in trading mistakes due to unfamiliarity. Trading strategies should be tested on a demo account . Once traders are comfortable and understand the strategy, this can be translated to a live account.
Mistake 2: Over-leveraging
Margin/leverage
