Do not commit these six fatal mistakes if you want to become a profitable forex trader. From not having a trading system to taking too much risk, always be cautious of these blunders.

This time, I want to discuss the six mistakes that often said to be fatal in forex trading. If you do these, then surely you fail as a trader. Well, let's take a look at the 6 fatal mistakes:

Fatal trading mistakes

1. Don't have a trading system

Having no trading system is the first fatal mistake. If you don't have a trading system, it means you tend to trade based on messy and disorderly approaches. How can you expect a success from a messy method? On the opposite, having a trading system means you have guidelines and goals as well as knowing the way to accomplish your goals in trading. Having a trading system improve the possibility to succeed.

 

2. Having no discipline

Even though you have a trading system, but if you are not disciplined enough in following them, then it means you do the second fatal mistake. Many trader friends stated that they have trading system, but in practice, they were still impulsively trading without paying attention to the system they has determined themselves. So the trading system is there as a display only.

 

3. Never learn

A bad trader is one who never update his technical analysis ability, never follow the news related to forex, never read forex books, never follow forex seminar and never join forex trader community. Well, there are many ways to 'learn'. You don't have to follow forex seminars all the time, but at least you should always try to improve your knowledge and ability in trading. It may be through informal discussion with fellow traders, monitoring the news, or just reading e-books about Forex. At least,  Don't be a 'trader in shell'.

There is no luck in business.
There is only drive, determination, and more drive.

(Sophie Kinsella, Shopaholic Takes Manhattan)

Another important thing is learning from experience. Losses should encourage you to do better in the next trading. Be patient, don't get bored or giving up easily. The formula you should use is: learning, trying, learning, trying...and so on. Just trying without learning anything is only wasting funds. Just learning theories without practice too, will not bring you anywhere.

 

4. No money management

Money management aims to control your risks, so you don't suffer from fatal losses that could make your account 'wither before growing '. That's why, if you don't care about money management, it means you'll make your deposits dissapear without a clear purpose.

 

5. Don't care about psychology aspect in trading

A trader who is able to control his emotion in trading will be able to understand that not all positions produce a profit. Loss once in a while doesn't annoy them. The possibility of such loss has been taken into account in the trading plan. Learn from successful traders who are able to trade with passion, not emotion.

Speaking about passion, a career consultant once said, Passion is all things we like in such a way so we can't think of not doing it. Passion will lead you to success. And what is sucess? It's not about becoming the best - it is becoming your self-best!. Each person has different passion. There are those whose passion is in music, sport or even more abstract passion like guiding other people. On whatever field your passion is, if you work with passion, all things would feel very fun because any sacrifice will be felt as enjoyment. If perhaps, you find a passion in trading, then I shall congrats you because you definitely will be a successful trader.

 

6. Taking too much risk

Do you want to bear the risk of loss 100 pips just to take 10 pips profit? Or, say, you trade without stop loss? Whoa, you'd better not. Remember, we are here as investor. We are traders, not gamblers. So don't take a risk which is not worth the rewards we'll get.

Those are major causes of our failure in this 'cruel' forex world. Please don't do above mistakes. Let's try to survive and live up the market. Ok, see you in the market!