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Ten mistakes all successful FX traders should avoid

If you aim to become a successful and profitable forex trader, there are a number of seriously damaging mistakes that you’ll want to avoid. It should go without saying that you will make some mistakes when learning how to trade.

Ten mistakes to avoid when trading FX

If you aim to become a successful and profitable forex trader, there
are a number of seriously damaging mistakes that you’ll want to avoid. It
should go without saying that you will make some mistakes when learning how to
trade.

It’s simply unavoidable. This is
not necessarily a bad thing, as mistakes allow you to learn and grow. The ten
mistakes that you’ll read about below are among the most common and as such,
tend to be the most damaging when not noted and corrected.

1.
Entering into too many trades at once

If you’re entering into multiple
trades at once, you’re likely over-trading. Each trade deserves your full
attention to help ensure that it is profitable. Dividing your attention among
multiple trades will only decrease the odds of each of those trades resulting
in profit. Less is more when trading FX and the sooner you realize this, the
better off you’ll be.

2.
Devoting too much time to analysis and trade planning

While trade analysis is necessary,
it can take up too much of your time. You may even find that you’re spending
way too much time in the planning phase and very little actually trading. There
will only be a number of optimal entry points each day. Don’t miss out on too
many of these by being locked into exorbitant trade planning.

3.
Placing too much focus on short-term charts

Trading too frequently on the
short-term charts can lead to over-trading and over-trading can lead to fast
losses and a gambling-like approach to forex trading. Additional, critical data
comes from higher time-frame charts such as those seen within the EagleFX
platform, and these charts tend to be more important than lower time-frame
charts. With higher time frames, you’ll receive more reliable signals and a
reduction in your stress levels.

4.
Bypassing the opportunity to trade on a demo account

One should never trade with real
money before trading with mock funds using a demo account. Even if you’ve done
your homework and are certain that you know how to trade, you need to see
trades in action within a platform. EagleFX offers free, unlimited demo
accounts to all. Visit them now to create a practice account and avoid this
terrible mistake.

5.
Trading solely based upon the news

Don’t assume that you know which
way the market will move based solely on the news. Far too many traders have
experienced serious losses due to making this mistake. You absolutely must
carry out technical analysis with fundamental analysis on each and every trade.

6.
Thinking that past “wins” guarantee current profits

So, you’re last ten trades using
the same parameters and selections were all winners. Congrats! Now, don’t make
the mistake of assuming that if you open yet another using the same selections
that it too will be profitable. Yes, trading with the trend can result in a round
of easy profits, but each trend has to end a some point. Always remember this.

7.
Trading out of desperation

If you’re feeling a sense of
urgency to trade, then you’re likely better off walking away. Terrible
decisions come from trading during desperate times. Take a break, collect
yourself, and make a new plan before trading again.

8.
Failing to follow the process

Although each trader may use their
own strategies, there are general steps that all traders should follow when
trading. Skipping past some of these (particularly analysis) can result in
losses. Follow the process laid out by the successful traders who have come
before you if you want to have the best odds of being successful.

9.
Making unplanned changes to live trades

Just because trading platforms such
as the MT4 platform provided by EagleFX allows for changes does not mean that
you should make them. No doubt, strong emotions can come from watching price
movement during a live trade. Acting on these can cause problems though, so
unless you are 110% positive that you’re doing the right thing, leave your open
trades alone!

10.
Entering the market after an optimal entry point has passed

Missed an optimal entry point? Move
on. Never assume that you can jump into a trade soon after a missed entry using
the same expected price movement and profit. Yes, it can sting to miss out on a
great entry point, but others will come along.

What truly sets the best forex
traders apart from the worst is that the best are those who have made mistakes
such as the ones mentioned above, but took action to correct them going
forward. Those who do not do this may end up making the same mistakes over and
over again, eventually draining their trading account.

Select a top-tier broker such as
EagleFX, establish a solid plan for trading, and make corrections when
necessary. If you do these things, you can expect to come out on top.

This article was submitted by EagleFX.

ForexLive

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Industry News

School4Trading Review – How to Spot Possible Forex Broker Fraud

School4trading Review

School4Trading Review – How to Spot Possible Forex Broker Fraud

In this School4trading Review, we will look at the features of the software, as well as the customer support. First, let us look at the interface. The design is simple and easy to navigate. It also provides a chatbot, which helps you to communicate with the broker. The customer service is warm and inviting, which is a hallmark of a good broker. In contrast, a fraudulent broker will use cold and impersonal customer support to lure people in.

Another problem with the system is that the login process is not always intuitive. You may have to retype your password several times to get in. Then, you may experience difficulties withdrawing your funds or accessing your account. In such cases, you might have to wait for days or even weeks before you can withdraw the money you’ve invested. This is not a good sign. It’s better to choose a different trading platform altogether.

If you’re having trouble logging in, you should also check the legitimacy of the broker. Whether the broker is licensed by a reliable regulatory body or closed down, you’ll want to be sure it’s legitimate. If the broker isn’t licensed by the right body, don’t trust him. You shouldn’t waste your time with an inexperienced company. This will only cause you problems in the long run.

The next factor that should be checked is the licensing. A legitimate broker will have a license from a high regulatory body. However, a broker without a license will be unreliable. Moreover, a reliable regulator will take away the license of a scam broker. As a result, a trustworthy School4Broker/Profittrade review should mention fees, account rules, and contract terms. A scam broker will be unable to operate legally.

Secondly, look for warning signs. The broker should be licensed and regulated by a reliable regulatory body. It should be regulated by a high level. If it doesn’t, it’s a scam. Lastly, it should have a website that lets you easily access your account. Moreover, you should not hesitate to check the contact information. If you find any information that seems suspicious, you should reconsider using the broker.

In summary, Forex trading isn’t easy, but it doesn’t have to be complicated. It’s not as difficult as it seems if you’ve heard about the program. You’ll learn everything about the basics and how to become a professional. But if you’re still unsure about whether this program is right for you, don’t hesitate to contact a school4trading’s website.

The most important thing to remember when it comes to Forex trading is that it’s not easy. While it’s important to have a strong background in trading, there are a number of factors that can affect your success. Having a proper plan is vital in the long run, because you will be trading with real money. And, the platform should be reliable. Otherwise, you’ll end up losing a lot of money.

As we’ve mentioned, Forex is not easy. Investing isn’t something you can do in the comfort of your own home. You need a proven system. There are no free trials, so you’ll have to find a way to do it yourself. This isn’t a scam, and it’s a great way to make money without any help. A Forex system can help you learn the intricacies of the market.

Although the process of learning Forex isn’t an easy one, it’s certainly not impossible. Fortunately, there are many people who are willing to take the time to learn how to trade. But, even the most experienced trader needs to be aware of the risks of the market. While Forex trading isn’t easy, it can be done with the right knowledge. The software’s user-friendly interface is key.

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Daily Financial News

Don’t Count On JPY Correction; Staying Long GBP/JPY

The path of the potential pace of the JPY decline may still be underestimated by markets, which continue trading the JPY long.

While the 10% USDJPY advance from September lows looks impressive from a momentum point of view, it may no thave been driven by Japan’s institutional investors reducing their hedging ratios or Japan’s household sector reestablishing carry trades.

Instead, investors seemed to have been caught on the wrong foot, concerned about a sudden decline of risk appetite or the incoming US administration being focused on trade issues and not on spending. Spending requires funding and indeed the President-elect Trump’s team appears to be focused on funding. Here are a few examples: Reducing corporate taxation may pave the way for US corporates repatriating some of their USD2.6trn accumulated foreign profits. Cutting bank regulation could increase the risk-absorbing capacity within bank balance sheets. Hence, funding conditions – including for the sovereign – might generally ease. De-regulating the oil sector would help the trade balance, slowing the anticipated increase in the US current account deficit. The US current account deficit presently runs at 2.6% of GDP, which is below worrisome levels. Should the incoming government push for early trade restrictions, reaction (including Asian sovereigns reducing their holdings) could increase US funding costs, which runs against the interest of the Trump team.

Instead of counting on risk aversion to stop the JPY depreciation, we expect nominal yield differentials and the Fed moderately hiking rates to unleash capital outflows from Japan.The yield differential argumenthas become more compelling with the BoJ turning into yield curve managers. Via this policy move, rising inflation rates push JPY real rates and yields lower, which will weaken the JPY. Exhibit 12 shows how much Japan’s labor market conditions have tightened. A minor surge in corporate profitability may now be sufficient, pushing Japan wages up and implicity real yields lower.

JPY dynamics are diametrical to last year . Last year, the JGB’s “exhausted”yield curve left the BoJ without a tool to push real yields low enough to adequately address the weakened nominal GDP outlook. JPY remained artificially high at a time when the US opted for sharply lower real yields. USDJPY had to decline, triggering JPY bullish secondround effects via JPY-based financial institutions increasing their FX hedge ratios and Japan’s retail sector cutting its carry trade exposures. Now the opposite seems to be happening. The managed JGB curve suggests rising inflation expectations are driving Japan’s real yield lower. The Fed reluctantly hiking rates may keep risk appetite supported but increase USD hedging costs.Financial institutions reducinghedge ratios and Japan’s household sector piling back into the carry trade could provide secondround JPY weakening effects

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Daily Financial News

Mexico raises interest rates, cites Trump as risk

The head of Mexico’s central bank says U.S. Republican candidate Donald Trump represents a “hurricane” sized threat to Mexico.

Banco de Mexico Gov. Agustin Carstens told the Radio Formula network Friday that a Trump presidency “would be a hurricane and a particularly intense one if he fulfills what he has been saying in his campaign.”

Trump has proposed building a wall along the border and re-negotiating the North American Free Trade Agreement.

Mexico’s central bank raised its prime lending rate by half a percent to 4.75 percent Thursday, citing “nervousness surrounding the possible consequences of the U.S. elections, whose implications for Mexico could be particularly significant.”

Mexico’s peso had lost about 6 percent in value against the dollar since mid-August. It recovered slightly after the rate hike

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