Everyone is always searching for a better way to make income for themselves and their families than working in and office. The appeal of working a regular day job is becoming low for a lot of us and we are always looking for new ways to make some money to support ourselves in our lifestyle.
Trading on the forex market something which is great for many people because it can be flexible as an income source and you don’t have to feel pressured into working for a specific number of hours every week. Today though we will be looking into some of the most common mistakes which new traders might make as they start out their journey to financial freedom.
Putting all eggs in one basket
When we start out trading on the forex market there are so many different currency pairs to choose from and a lot of us want to stick to one pair to get us started. This is a good tactic to take as you learn the ropes however bear in mind that you shouldn’t stick to one pair for the rest of time and you certainly shouldn’t place all of your money into one order. Make sure that you spread out your money over a few different pairs and this will negate the risk you normally face and will help to make your trading easier.
That all trading is the same
Thinking that algo trading is the same as day trading or spread betting is a mistake a lot of people make when they start to trade. It is important to take some time before you start trading on a real MT4 account to look up the different kinds of trading to find a type which suits you and your style. Everyone has a different way of doing things and this is why there are so many different types of trading to look out for.
Not looking at the news
If you are new to the trading circuit you might just assume that you have to buy and sell a currency and try to hope for the best in order to make a profit. While it is true that currency values can sometimes be random, they don’t just come from nowhere. For example let’s look at Brexit: the value of GBP against EUR and USD in the last few days has been pretty volatile, and this is due to MPs rejecting Theresa May’s deal for the second time. When something like this happens people don’t want to invest in GBP anymore so they will sell it, and as a result the value of GBP goes down. Make sure you always keep one eye on the news to ensure you are successful at trading and this will make a massive difference.
Not taking advice
It is so important as a trader for you to join a community or get some advice from other people who are trading the same things. It is incredibly important for you to get as much advice as you can as a trader because there are many strategies and psychologies which you need to learn.