Slide 1: By: Jay Molina From: http://myfxventure.com/
Slide 2: A few months ago I had the opportunity to work with a Forex trader who was very well funded but he was unable to achieve the profits he wanted. He contacted me after reading some of my best online trading articles. After several meetings we were able to find a proper trading strategy and money management plan to fit his trading goals. However, he had already lost $30,000 from his hard earned money and he was been a victim of the psychological influence of the market. During my meetings with him I was able to detect the main mistakes he was committing and that were preventing him to profit from the market. In this article I will be sharing with you the mistakes I saw he was committing that cost him $30,000 in trading losses.
Slide 3: Not using the right money management and risk management techniques: One of the biggest issues this trader had was that he was using the wrong money management techniques. People make you believe that making the most pips is what really counts, however I think differently. A pip is a unit of measure that is used in Forex trading and the amount of pips you produce in a trade is only determined by price fluctuations. On the other hand, when you use percentages as goals instead of pips you will be able to control and measure the performance of your trading account.
Slide 4: Allowing your emotions to cloud your judgment: Letting your emotions get on the way is the best way to lose all of your trading funds. When a trader is manipulated by his emotions he is more likely to take irrational trading decisions, and irrational decisions lead to losses. The best way to control your emotions and become a disciplined trader is by following a strict money management plan and goal oriented trading strategy. Building yours should be one of your first priorities as a FX trader. Over trading leads to failure: This is one of the most detrimental and expensive trading mistakes. Overtrading is defined as the action of looking for trading opportunities when they are not there. Sad but true, over 80% of all traders I have had the opportunity to trade with were overtrading.
Slide 5: In the past I have compared over trading with an addiction like alcoholism. A person who has a drinking problem never admits that he has an addiction nor does a trader who is over trading. The only way for someone who over trades to become profitable is to admit their mistake (overtrading mistake) and find a way to fix it. Looking for instant gratification by trading low time frames: I don’t have anything against scalpers or people who like to trade low time frames, I know low time frame traders who make a killing in the Forex. The problem is that scalping is not for everyone. Many people become scalpers for the wrong reasons and many times they just want to make some money quickly. Unfortunately, this is not how successful Forex traders roll and I have learned that looking for instant gratification is likely to lead to big disappointments.
Slide 6: In conclusion, make sure you focus on putting all together and don’t rush to open a live account if you are not ready. To your trading success, Jay Molina Pro Forex Trader & Educator
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