The Biggest Mistake Traders Make in the Forex Market

More traders make this mistake in the forex market than any other. Don't become a statistic, avoid the biggest forex mistake.

Even in the most promising and paying out trades, that can all be forgotten in an instance due to a poor exit strategy. Most new forex traders make the biggest mistake in particular which is plainly not working out an exit strategy when they enter a trade. This is what separates the weekend traders from those who support themselves and then some from their gains in trading.

Learn to use your stop loss setting effectively and don't attempt to trade ahead of the curve. There is good money to be made simply by reacting to changes in the market. Still, you've got to know when to pull out and keep your emotions in check which can be difficult to do even when you're aware of it if you're in a situation where you're invested in a long profitable trade which suddenly reverses. It can be difficult to both bring yourself to pull out but at the same time know that it's the best time to go short.

Many traders rely completely on automated forex software to do much or all of their trading for them. These programs keep constant tabs on real time market data around the clock, trade into reliable trends with the capital you give them, then pull out once the market fluctuates out of your favor at a point which the program deems the best.

Because of the fully automated nature of this software, you don't need the time to devote to trading yourself which is a major advantage in this 24/7 market which likely explains in part why over 30% of all traders embrace this technology.