I am not saying that the other 5% do not make those mistakes. They actually do. However, the difference is that they control their losses. All trader make these mistakes, regardless, but what makes the difference between being dead or not, is how you react to those mistakes. So, let us see now what those deadly mistakes are. If you feel there are other important mistakes, please do not forget to leave your comment below and benefit everybody.
1. Losing Control of Your Emotions:
Not having the strong enough discipline to control yourself will make you revenge trade; over-leverage and risk more than what you can handle emotionally and psychologically; and close your mind to seeing new opportunities in the market, which put you in an endless cycle of losses until you either give up or blow your account, completely.
2. Changing your trading plan consistently:
For you to master Forex trading, you need to start with one trading strategy and stick to it! Do not change it now and then. You need a large enough number of trades to understand the effectiveness of your trading strategy. Once you master that one trading method and become profitable, then start tweaking it and improving it instead of changing it completely.
3. Focusing too much on the technical analysis aspect and forgetting that trading is all about psychology. Everyone knows the technical aspect of trading.
Support resistance/ trend lines etc.. so even if you think you are good with the technical aspect of trading you will still lose money if you don’t focus on self-development about trading. My mentor always focused on developing my mindset as a trader, and to think like a pro trader. Only then I was able to make a difference in my trading. So spend your time understanding what those actions that you take and cause you fears are. Workaround them and develop your trading plan around your style and psychology, and not around someone else’s. Remember, the reason why you might not succeed using someone else’s ideas is that you can’t see what they see. Everyone sees the market differently.