Free Welcome Bonus by SuperForex
Did you know that some brokers are offering bonuses for free?
With some of their bonuses, you can start trading Forex without risking your own funds because you don’t need to make a deposit by yourself.
The fund for trading is provided by the broker so that you can immediately start trading in the real Forex market.
The bonus amount is normally very small but enough to make traders and experience the real Forex market.
It is different from the Demo trading accounts so you may also feel the intensity of the market while trading.
One of the most popular Forex brokers that offer a free welcome bonus is SuperForex.
By signing up for SuperForex today, you can receive $88 for free to start trading Forex in a live account.
You can find more information about SuperForex’s $88 No Deposit Bonus in the page here.
For traders who are just getting started in the Forex market, we are here to give you some infamous common mistakes beginners make.
In the list below, you may have a lot to learn as a beginner.
Common mistakes of Forex traders
“Only fools learn from their mistakes, wise people learn from the mistakes of others.” Have you heard this saying?
We have compiled the most common mistakes traders make. Avoid your own mistakes, learn from the mistakes of others!
1. “Fail to plan and you plan to fail”
Everyone knows that it is quite difficult to do something without planning. We’ll tell you even more: it’s impossible to trade without a plan. A trading plan is a set of rules consisting of your trading strategy and money management strategy. A plan will help you determine when to enter a trade, how to exit an unsuccessful trade, when to reach your target, the amount of money at risk. Without this knowledge, you will surely lose.
2. Don’t have Stop Loss
Even if you are 100% sure of your profit target, you should set a Stop Loss. The Forex market is very volatile, and urgent news can lead to a trade shift. In January 2015, the Swiss National Bank suddenly cut a cap on the value of the franc against the euro, and EUR/CHF fell 30%. This incident shocked everyone. Many traders who do not have a Stop Loss order in place suffer heavy losses. If you don’t have a Stop Loss, you may simply miss a moment of turning that will lead to disaster.
3. Adding unprofitable trades
Sometimes traders are so confident in their trading targets that they are blind to reality. Imagine you open a buy order, but the market is moving down. However, you are very confident that you are making the right thing when you increase your position size in the hope that the price will soon reverse up. In that situation it looks like you are only multiplying the loss.
A similar thing happens when a trader increases his Stop Loss during an unprofitable trade so that the trade does not close with a loss. Stick to your original decision. Otherwise, your losses could be even greater. If it was the wrong decision, try to analyze what went wrong after the trade was closed, learn from this trade and use this knowledge to make better trades next time.
4. Lack of risk management
Traders who don’t manage their risk risk losing everything. Traders cannot allow themselves to think only about profits. You should always calculate how much money you risk losing per trade and per day. If you keep your potential losses limited, you will be able to stay in the market for a long time and thus have more opportunities to earn. Stick to the rules: 1% risk per trade. Nothing should distract you from this rule.
5. Ignore news releases
Every trader knows that certain events and data releases affect the Forex market. If the actual economic indicators differ from the predicted levels, the currency pair becomes very unstable. As a result, all traders, even those who choose not to trade on the news, should take the news into account. Ignoring the news is a serious mistake that can easily be avoided if you plan your trades and research the economic calendar.
6. Trading correlated currency pairs
Traders often try to trade multiple days, but many of them don’t take currency correlation into account. It looks like you have a good chance of making money on multiple currency pairs but be careful: if you see similar trading setups in multiple pairs, chances are they are correlated. So that means you can win or lose on all of them at the same time. For example, USD/CHF and USD/JPY have a significant direct correlation: when the former goes up, the latter is likely to strengthen as well. So when you buy both pairs at the same time you double your risk.
7. Trying to get revenge
Losses are difficult for everyone, especially beginners, so they try to take revenge in the market. Usually, revenge trades are 2-3 times bigger than previous losing trades. As a result, they lost even more. Losses are inevitable. Focus your energies not on vengeful trading but on analyzing unsuccessful trades and improving for the future.
8. Lack of education
Lack of education leads to blindness and trade losses. If you want to have profitable trades, you should always improve your skills. If your goal is to become a successful trader, read educational books, learn new indicators and practice new strategies.
In conclusion, you will definitely make different mistakes when trading. There’s one more saying: if you don’t make mistakes it means you don’t do anything. However, if you avoid the common mistakes mentioned in this article, your trades will be successful much faster.