1. Poor Orientation About Financial Market:proper orientation is very
vital for any business to succeed. You must know how a company works for
you to be successful. Having a large amount of money to invest in forex
market is not a enough reason to start trading immediately. Most
Traders fails because of erroneous information been passed to them my
fellow Traders who are also failures in the industry. Some of the bad
orientations are: turning $100 to $2000 within a week, two days of forex
seminar is enough to be a professional forex Trader, nobody makes it in
forex market and lastly going on live account without practicing on
demo account. As a new Trader, you should do enough research about the
industry before starting the journey. Because, if the foundation is
destroyed there's nothing you can do. This orientation can be acquired
from a reputable forex broker, mentors and reading books on Forex. In
Nigeria, some Forex brokers offers free seminars and you can make use of
the opportunity to ask them questions about the market and how it
works. This will give you an edge as a new Trader and to be successful.
2.Spending Limited Time on Demo Account:demo account is meant to help you practice
and perfect your trading strategy before moving to Live account. Most
brokers do offer a free demo account for their clients. One of the major
mistakes new traders make is to spend just few days or weeks on demo
account then move to Live account immediately. Demo account helps you to
get familiar with the trading application and the business environment.
Apart from getting familiar with the market environment, you also
perfect your trading strategy before going live. Even old Traders that
are intending to develop a new strategy, should use a demo account to
perfect it before using the strategy on live account. It also helps to
build and develop a strong psychology that will be of a great help when
you start trading Live account.
3.Poor Trading Plan:Forex is like any other business that requires a concrete plan. Before you start a
restaurant business, you need to plan the location of your restaurant,
the kind of meal that you'll be offering your customers, types of chair
and table to use in the restaurant, and other stuffs. The same thing
applies to Forex market. Forex is a serious business and it should be
treated as such. Your training plans should consist of the strategy to
be used, entry rules, exit rules, risk management and personal journal
to record all of your trades. Most Traders lack the ability to develop
an effective trading plan and to follow the plan accordingly. Without a
trading plan, all you will be doing in the market is gambling. Without
entry rules you might enter the market late or without exit rules, your
positive trades my turn to negative. Also, without proper risk
management, there's 90% chance that you will blow out your account.
Before each trading day, go through your trading plan to avoid mistakes.
It also helps you to keep your emotions in balance. I will advise you
develop a strong trading plans before trading.
