7 deadly sins of Forex trading. The best reasons why you are not making money.

7 deadly sins of Forex trading. The best reasons why you are not making money.

Here they are: –

Sin #1

You buy the system or robot with the best marketing without taking the time to look under the hood and kick the tires. The best prepared person always wins and with technology today, there no reason you can’t ask to see some proof that what you are about to buy works

Sin # 2

You take trades based on your gut feel and ignore the rules of the system you just bought. This is a lot more common than you may think. Traders have a few bad trades and just lose all control. Just think of some of the big bank traders that caused scandals by risking Billions of Dollars because they couldn’t take a loss.

Sin #3

You risk more than you should. This is related to the last Forex sins, but is probably the deadliest. Look, Forex is one of those things that can make you fabulously wealthy in super-fast time. There’s no limit to how much you can earn in a single day. It’s not like a franchise where you can only sell as many burgers as you have in the store. In Forex there no limit.

The other side of the coin is gambling. And if you speak with just about any trader that is being honest, they will all tell you they have done it at least once. The temptation to make up all your loses in one trade is overpowering for some people.

Sin #4

The system you bought doesn’t work in the time zone you trade it in. 90% of traders have full-time jobs. They can only trade when they finish work. If the system you bought doesn’t work when you when you are not working, no amount of wishing will sort that problem.

Sin #5

You are trading the wrong time frame. This is different from the wrong time zone. Some systems only trade using daily bars (daily time frame), some only trade using 5 minute bars (5-minute time frame) and so on. Most systems work best in one particular time frame and that is vitally important. If you want to sit down and trade, but your system only uses a 4 hour time frame, you might only get a few trades a week, that’s not a bad thing but if you don’t understand that, then you might be wondering why it’s not working for you.

Some of the best systems can be traded on any time Frame, so it doesn’t matter if you want to sit down and trade on a one-minute time frame and get lots of trades, or you might only want to check your charts once a day. There is no best time frame, but you do have to understand how it fits in with your system.

Sin #6

Listing too many opinions. In a recent survey I did, I found that roughly 33% trade live, 33% only trade demo accounts and a startling 33% had no trading account whatsoever. These are normally the guys who hang around forums and blogs. I’m not saying they are all like that obviously, but you normally get what you pay for.

Sin #7

I’m going to tell what your mother or father has probably been telling you since you were a kid. There no short cuts in life. If you want something truly great that will build your wealth for you and your family for years to come, you will have to do some work.  That almost seems like a dirty word these days, but let me tell you, the guys who roll up their sleeves and do a little work in Forex get rewarded big time.

Don’t be guilty of these 7 Forex sins

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