By sticking to a rigid trading plan, you can avoid potential pitfalls, check my reference.
Overleveraging Your Forex Account
When you overleverage in forex you will have taken a position that is larger than your margin. A margin that is not sufficient can lead to the loss of your entire trade, and even in the case of a very slight movement on the market.
This does not mean that you should take advantage just because your leverage is generous (100:1 or 200:1). Based on fundamental and technical analysis, do not focus your trades on potential leverage. Instead, consider trade-specific factors.
Forex Trading Not Adequately Adapted
Not adapting to market fluctuations is a common forex mistake.
Since the market changes constantly, it is important to have a strategy that can be changed and adjusted. The market overall condition should be constantly assessed. A strong trend will make the range strategy ineffective.
To understand how to trade, you should utilize technical analysis.
The current situation is vital to keep up with
Recent events affect the currency markets. Forex market fundamentals are important and it is vital to keep up with them.
It is possible that the announcement in the near future of a large economic change to a particular currency country can ruin a positive technical trend.
The best way to stay organized is by keeping track of events, important announcements, and other dates. Re-visit this calendar regularly. Take action and be prepared for things that you’re aware of.
Forex trading at the back of your mind
The most common mistake made by forex traders is trading defensively. Every trader will have losing streaks. Traders may take defensive action after a loss streak to Avoid more losses.
Consider the failures of previous trades, and then focus on new successful strategies.
You should also be realistic. It is unlikely that a single forex trade will provide you enough income to retire. Avoid plans with less than 100 percent of profits. If possible, try to lock them into a plan.
Conclusion
When trading forex, be realistic and do not make the most common mistakes. Forex traders should stay on top of the most recent news and keep their trading plans in mind.