1. Just cut trading frequency down! The most common error new forex traders make is they think the more they trade the more chance they have of winning.

They like to trade forex short term moves day trade and scalp what happens? The odds are not on their side and they lose. On the other hand you have a trade who always likes to be in the market in case he misses a move well you can still miss a move when you're in it by being the wrong way round!

Cut your forex trading frequency - only focus on high odds trades.

How effective this is?  I know forex traders who trade less than a dozen times a year and make triple digit profits !

In a 9 - 5 job the more hours you put in the more you get out - in forex trading this is not true and in many respects, the less effort you make after getting your basic forex education the better.

Mistake #2. Being too clever

A Help in most areas of life - a hindrance in the forex markets . Why is this so?

Because clever people very often come to forex with the attitude that I have got a degree ( or whatever) so I am smart and will be rewarded - Deadly wrong!

You see these forex traders have such egos and can`t take losses discipline breaks down, as they can't agree with being wrong.

Another trait of the clever forex trader is - to build highly complicated forex trading systems and overload them with to many inputs - complicated trading systems are not as effective as simple ones, as they have far more elements to break in the brutal world of real forex trading. Simple ones are simply more robust and more effective.

The best forex traders tend to be humble and have simple trading systems and have the all important trait of being able to accept losses and look stupid in the short term, to accept longer term profits.

The two forex trading mistakes above are very common, so don't make them from the very begining and if you are making them now, correct them immidiately. If you do so you could turn a losing forex trading strategy into a winning one.

Forex trading is all about trading high odds trades and they don't come around all the time, be patient and be prepared to implement a simple trading system with strict discipline when they do, its as simple as that.

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