Consider Risks Before Profits

Beginners have a serious psychological tendency to ignore the downside risks to a trade instead focusing on the profits only.

They need, in fact, to do the opposite in order to first survive and then prosper.

Expecting each trade to make them rich is another mistake new traders make.

They need to understand that they will earn more if they trade with realistic objectives. Having profit expectations that are too high will only result in disappoint and a drop in confidence.

New traders fail to review their financial goals regularly and, as result, fail to detect changes in their motives, objectives and any caused by the effects of their evolving circumstances.

Just because a market is hot and making a major move is no reason for you to enter a trade especially if you do not fully understand the underlying causes. Most times under these circumstances, the best course of action is to do nothing and await better defined trading opportunities.

Forex novices find it difficult to understand that trading carries with it a tremendous amount of risk.

They need to develop a sound, disciplined trading plan based on an astute knowledge of the Forex Market coupled with good Money Management skills.