In trading, it is not uncommon for us to find many mistakes that are usually made by novice traders. So, how can there be traders who fail in forex trading? Why is forex difficult? This is the question that haunts many traders until now, even though the large turnover of money should make many traders able to get big profits.

The forex market turnover of US$5 trillion every day makes this market the largest market in the world and promises big profits in the long term. There are quite a lot of forex traders who have succeeded in getting big profits from the forex market, but there are also quite a lot who have failed in forex trading.

Forex trading is not a tool that can make many people rich suddenly. Forex trading requires a strong foundation in order to succeed, both in terms of analytical skills, trading skills or trading psychological mentality. Most mistakes start from the reluctance to do more in-depth learning about forex trading, this is the starting point of trader mistakes, not from market mistakes.

Fatal Mistakes of Beginner Traders

As a lesson, here are 10 fatal trader mistakes so that traders no longer need to think about why forex is difficult.

Neglecting Learning

This is the biggest mistake any trader makes when they first start trading. Most of them start learning little by little on demo and when they feel they can do it they are tempted to ignore the learning and go it alone in the forex market.

What happens next is predictable, at the beginning of trading they may make a decent profit, but then because they are too confident they end up failing and falling in forex trading. In fact, if we want to learn, there are quite a lot of resources that can be used as educational materials.

It can be done through private classes, attending workshops or attending online classes that are held by many traders. This is intended to make your mentality and trading abilities always grow over time.

Emotional Traps

A trading plan is the first thing that is highly recommended before entering the market. This will be very useful in helping you to be disciplined in trading and avoid you from making your own rules when trading. You must remember that in trading there are already basic rules that must be followed, such as how much money you should trade or how many total lots you use in one trade.

A trading plan makes you more disciplined in trading and less likely to fall into emotional traps because there is a plan that has been made that helps you to escape the risk of major losses.

Trading Without A Plan

Another mistake that most novice traders make is trading without a trading plan. Planning here is not just about entry and exit, buy and sell. Actually, basically, buying or selling anywhere is fine, the biggest problem is what do you want to do after entering buy or sell? What is the planning like?

Taking profit at what level or limiting losses at what level? Until setting an exit plan if this plan fails. This is very important considering the many unexpected things in forex trading. Trading without a plan is like a soldier going to war without a map, not knowing where to go.

Don't Understand What Margin and Leverage Are

Leverage and margin are facilities provided by broker to maximize your trading using the capital you have. The mistake that novice traders usually make is not understanding the use of leverage and margin. What they know is that as long as the margin is still available, they can still trade and add positions.

In fact, margin and leverage are like a double-edged sword that can increase your profits and at the same time increase losses. The wrong use of margin and leverage can make you experience very large losses, and this is a disaster for you if it happens.

Shortcut

There is no get rich quick scheme in forex trading, and if that is what you are looking for, then frankly forex trading is not the answer for you. Forex requires careful planning of when to enter and when to exit. There is absolutely no shortcut to making big profits quickly here. If you take shortcuts, then you are almost certainly getting closer to failure.

Don't Understand What To Do

At this point, a trader may have learned to know the basics of trading, but traders here do not enter based on their own analysis. They use recommendations to buy or sell on a pair without ever understanding why they should buy or sell.

In this condition, traders will experience deadlock and confusion when the market does not run as recommended and do not know what to do. It would be better if you focus on learning one pair, why you should enter and why you should stay away from the pair. It would be better to make an entry mistake at the beginning of trading and learn from experience from experience than you enter but do not know why you should take that position.

Trading Too Many Pairs

Trust me this is not an easy thing for you. Maybe you have heard of multi pair hedging but it is not something easy to do especially if you have just entered the world of forex trading and do not have much time to do in-depth analysis of forex. It is better to take a position in one pair only so that you can focus, when it is clear then you think about moving to another pair after knowing for sure the condition of the pair.

Too Much Averaging In Losing Conditions

Averaging is actually one of the strategies in trading, but it is highly discouraged to do it in a position that is experiencing a loss, especially if there is already an averaging position there. This is the same as multiplying the risk and in the worst case, it will make you unable to exit the trade and get stuck in a margin call position that makes you unable to do anything.

Not Using Stop Loss

Not using a stop loss is the same as leaving you open to the dangers that come your way. It's like driving a car but not using the brakes at all, making the risk of an accident even greater. Stop loss makes your trading safer because it has brakes and allows you to give safer control over your trading account.

Not using a stop loss is the same as leaving you open to the dangers that come your way. It's like driving a car but not using the brakes at all, making the risk of an accident even greater. Stop loss makes your trading safer because it has brakes and allows you to give safer control over your trading account.

Trading Pada Tempat yang Tidak Terlihat

Finally, the fatal mistake of novice traders is trading in an invisible place. When walking from one pair to another, sometimes a chart condition attracts interest to enter it, even though previously they had never studied the pair, either from the fundamental or technical side.

Actually, this is very dangerous, because you do not understand the condition of the pair at all. It would be better if a beginner trader focuses on one pair rather than trading in a place that he has never studied. It is better to be a specialist in one pair than trading in a place that is not well understood.

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