Man is not free from mistakes. This term often we hear when someone makes mistakes, both in terms of work or daily activities. As well as work in running forex. a trader in forex trading also often make mistakes in determining to trade. These errors often occur in daily traders. For more info please click fxtrade777.com
A daily trader will usually close and open trading positions on the same day. Then, they tend to open multiple positions in various currencies by relying on trading signals from some technological indicator. Such as price action, as well as fundamental news releases.
Timeframe trading that was used did not have a sufficient period of time, ie between 15 minutes to one hour only. Daily trading like this will certainly feel easy for experienced traders, but it will be difficult for if applied by beginner traders who have not had much experience. In fact, many beginner traders are using this way and many experience errors and cause harm For other articles please visit tradegbp. Here are some common mistakes that traders often make daily:
Trapping position ahead of launching fundamental news
Applying the trap position is usually done with pending buy order stop & sell stop simultaneously ahead of the fundamental news release which is expected to cause high volatility To avoid excessive volatility, traders generally have set profit targets for each position.
Open positions after fundamental news release Whatever the reason, the entry at a time of high volatility is certainly very dangerous. In addition to slippage, we also do not know clearly the risk of newly released fundamental information. To open a position, we better wait for approximately 30 minutes after the news release.
Determining the target profit per trade is overwhelming
Target profit per trade is too big does not mean profit. Often a daily trader uses a too large lot of trades to get maximum profit. Remember in forex risk and reward is always comparable. The bigger our target, the risk will also increase.
A less realistic profit dream
As with too large a lot size, the determination of risk/reward ratio that exceeded the high bias harm our trading. At low trading time frame (under 4-hour) there will be a lot of noise so be careful & realistic when ensuring risk/reward ratio.
Daily traders often get stuck in averaging down or open new positions that experience loss. Unplanned averaging down is emotional. You need a plan to cover losses or drawdown which will run. The best trick i is to work according to the financial management that has been made