Here are 5 of forex day trading mistakes to avoid

Here are 5 of forex day trading mistakes to avoid

forex day trading mistakes and how to avoid them
forex day trading mistakes
Here are 5 of forex day trading mistakes to avoid, In forex day trading, there are practices that can cause you to lose your entire capital. And you should avoid trading mistakes that you can make while forex trading in an attempt to increase returns, but these steps have the exact opposite effect in the end. 

In this article, we will explain to you the expected forex trading mistakes, and show you how you can avoid them with knowledge, discipline, and alternative plans.

Average dip in forex trading

There are a lot of mistakes forex traders make by using the average down position. It is rare that this is intentional, but unfortunately, many forex traders have ended up doing this. As there are many problems associated with the average drop in the forex day markets.

The problem is that the forex day trader keeps a losing position - sacrificing not only his own money but his time as well. Thus, my friend, you can put your time and money in a better place and avoid forex day trading mistakes.

The other thing is that a higher return on your remaining capital is always needed in order to recover any lost capital from your initial losing trade. If you lose 50% of your capital, you will need a 100% return to get your capital back to its original level. This can lead you by losing large portions of your capital to paralyzing the growth of your capital for long periods and thus you have fallen into a trap of common trading Mistakes.

If you average down confirmed, you will result in a big loss, although the trend can stabilize for a longer period - especially if you add more money because the position assumes losses and this ensures that you avoid trading mistakes during the day.

Most day traders are very sensitive to these issues. Because the short time frame of the forex trades means that your opportunity is short-lived and there is no substitute for the quick exit of the bad trades.


Pre-determining forex trading news

From forex day trading mistakes to avoid it is to determine the news of daily forex trading, as all forex traders follow the news that will move the daily trading market, but the problem of the direction remains unknown in advance. 

Therefore, traders may be very confident that news events will affect trading, we give you a model for that, for example, that there is news that the Federal Reserve will raise interest rates or vice versa, this will definitely affect the forex markets. 

Even then, you cannot predict how the market will react to this expected news. As there are other factors such as additional data, numbers, or future indicators provided by news announcements that have an impact on the illogical movements of the forex market.

But there is a simple fact that you need to realize is that with high market volatility and all kinds of orders coming into the daily forex market, you should run stop orders on both sides. This often causes a trend to emerge (and does not appear in the near term).

For all of these reasons above, and in order to avoid day trading mistakes, taking a certain position before a news event can jeopardize your chances of success.

Forex trade decisions after headlines

Likewise, news can affect the markets at any time and cause strong movements. Although it seems easy to be a regressive trader and score some points if it is done with untested day trading strategies it can cause you to lose just like day trading forex before the headlines come out.

So in day trading for beginners, traders should wait for the volatility to subside and the final trend to emerge after the headlines announcements. By doing this, there are fewer intraday trading mistakes, your risk can be managed with more effective practice, and you can also see the more stable price direction.

Trade forex with more than 1% of the capital

Exercising high risks does not mean high returns. On the contrary, these are forex day trading mistakes almost every trader who risks a large amount of his capital in his individual trades loses it in the end. It is well known that there is a common rule that traders should not risk (this relates to the price difference between entry and stop) no more than 1% of the value of the capital in any single forex trade. 

It suffices to know that most professional forex traders risk less than 1% of their capital, so pay close attention as this is one of the most important forex trading mistakes to avoid.

Day trading is also worth paying extra attention to, and you should also be maximizing forex day trading mistakes where your maximum risk can be 1% (or less) of your capital, or equal to the average daily profit over the whole month. 

We give you an example if you are a trader and you have a $50,000 account (leverage not included) you can lose a maximum of $500 per day under these risk controls. Alternatively, you can change the number so that it is more proportional to your average daily profit, for example, if you make a profit of $100 on normal days, this keeps your loss close to an amount less than or equal to $100.

The reason behind this method is that no single trade or forex trading day has a huge impact on your account. Therefore, you must make sure that you will not lose more in one Forex trade or one trading day than you can gain in another trade by adopting the maximum risk that is equal to your average daily profit during a month.

Unrealistic expectations in forex daily trading

Here we can talk a lot about unrealistic Forex predictions, which may come to you from many different sources, but mostly lead to forex day trading mistakes and even the occurrence of the problems described above. As trading expectations are imposed on the market, yet you cannot, my friend, expect to act according to your wishes. 

Simply because, the forex market does not care about your desires, and you must accept that the market can be stable and volatile and trend, in short, medium, and long term cycles. There is no specific tried, tested and correct way to classify each step and profit from it, and believing otherwise will lead you to frustration and error in judgment.

But the best way to avoid unrealistic forex market expectations is to follow a trading plan. And if that plan produces consistent results, you shouldn't change it - with forex leverage, your small gain can become big. As your capital grows over time, you can increase the amount of the position in order to achieve higher returns or you can implement and test new strategies.

During forex day trading, you should also accept what the forex market offers you in its various periods. For example, the forex markets are often very volatile at the beginning of the trading day, which means that specific forex trading strategies that may have been used during the opening of the forex market may not work later in the trading day. 

It may become more stable as the forex trading day progresses, and you can use a different strategy. Towards the end of the day, you may find recovery in action, and you can use another trading strategy. In short, if a trader can accept what is offered to him at every point of the forex trading day, even if it does not match his expectations, he is in a better position to succeed. And avoid forex day trading mistakes.

Finally, what we advise you my friend is that when you are trading forex today you should manage your expectations by accepting what the forex market offers on a particular trading day. All in all, you are more likely to find success by understanding forex day trading mistakes and how to avoid them.

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