One should avoid opening or closing positions when major economic numbers are released Monthly employment reports of the USA, UK, etc. How to know if the news is big and important? There are Economic Forex calendars that show the upcoming events and their expected impact.

This especially applies to the UK and USA bank holidays. The amount of resources traded in the Asian market sessions are comparatively very low so the average pip movements are too low to cover the high spreads of the Asian currencies. This is the time when a lot institutional and Bank employees take holidays thus the volume of commercial transactions can fall during this time. World championships in Football, NBA or Superbowl finals, The X-Factor, etc.

often create the same effects as holidays, so a TV program can also be a useful tool of a trader. And these events normally are not planned in the economic calendars.

A golden rule that is fully understood only by seasoned traders is to avoid opening or closing positions during emotional moments — both happy and vindictive. Currency business is not for emotional decisions. The same applies to loosing — many become aggressive and thus make rash actions. The mind must be completely calm as you are trading. Many brokers charge extra fees for leaving the positions open during the nights called overnights , so you must check if they are appropriate for you before opening a longer position.

Partnering with Forex Hero and Three Investeers. Home Articles Forex trading pdf e-Books TOP brokers Applications eToro Social trading About Us. Market closing time If one happens to be trading during Friday despite the risks of high uncertainty then the exact closing times of major markets London, NY must be monitored closely because at those closing times the rates and liquidity can swing wildly resulting in slips, high spreads and overall losses.

We have made a number of mistakes and when we look back at them now, we can see how silly some of those mistakes were. They can be easily avoided, but you need to know what they are first. So we are going to be looking at some of the things that traders should not be doing when they first start trading the forex markets.

Many new traders are excited about actually placing their trades. The problem with this excitement is that it means that a lot of traders do not actually learn enough before they decide to place those first trades.

They learned the basics, what a trade is, and how to put it on, but that is about where the learning ended before trades have been placed. The problems that you will not be using a proper strategy with proper risk management, and so you are taking a lot of risks by placing trades too soon.

Instead, you need to ensure that you know what you are doing. Take your time, there is no need to start placing trades as quickly as possible. There are a lot of currencies and a lot of assets available to trade, the variety is great and can really help us to be profitable as we can always find something to trade. There are however downsides to it, each and every currency and asset behaves slightly differently and is affected differently to real world events and news events.

So there is a lot to learn. What a lot of newer traders do is that they start to pick a lot of assets at once and try to trade them all, this can be really confusing and ultimately overwhelming as you cannot learn about all of them at the same time.

Instead, it is always recommended that you take your time to learn a single currency or asset at a time. Learn everything that there is to do with it, master it, and only then should you look at trading another asset. Of course, just one at a time until you learn all that there is about it and then another.

Continue like this and it will help to keep you from overwhelming yourself or getting mixed up between a number of different currencies or assets. Forex is ever-evolving. Things are always changing. The markets are always changing and what you need to know is always changing. There is also an incredible amount of information, so much so that not a single person will know everything about everything when it comes to trading.

So it is always a mystery why some people think that they do not need to learn anymore, and this is more often than not those that are newer to trading. They have learned their first strategy, they have placed some winning trades and so they believe that they know all that they need to know.

You need to keep learning though. Every day you can learn something new, as soon as you stop, the market conditions will change and this will basically throw off anyone that is not learning anymore.

They will not know how to adjust in order to match the markets and so they will begin to make losses. One major rule of trading is that you never know everything, you need to always be on the lookout for new things to learn. What we see a lot of traders do is to place trades that are far too large for their account size. This can be due to a lack of understanding, or it can be due to the fact that they want to make more money or that they are desperate to make more.

Either way, it is not a sensible thing to do and it will ultimately only lead to losses or even completely blown accounts, especially if they are not using the proper risk management techniques in their trades.

It is always better to trade too small than too big, at least that way your account will be safe should the markets turn against you. Another thing that a lot of new traders do along with placing trades that are too large is to simply place too many trades. Whether or not someone is using a strategy for their trades, when you begin to place a lot of trades it can only lead to disaster.

When we place a trade we use up a little bit of our available margin, as we place more we use more and more up, as we begin to use up a lot of it. We will also be placing trades that may not be considered as good trades, trades that are on a hunch or that are not in line with any strategies, we need to avoid doing these.

More is not always better, you need to place trades that you are more sure of, rather than lots and hoping for more wins than losses. Stop losses are amazing things. These can be set for each trade. When the markets reach that level they will automatically close the trade at a loss.

If you know what you are doing, forex trading can be highly lucrative. When you do not, you will probably end up losing more money than you originally invested.

While there are plenty of articles out there online that will tell the best strategies to use when trading on the platforms like the FXTM forex platform, there are not so many that do a good job of alerting new traders of the habits that tend to add up to an unsuccessful trading strategy.

The aim of this article is to right this wrong and give you a heads up before you end up falling into some of the same traps that almost every inexperienced trader does to begin with. Read on for the A-to-Z in things not to do when trading forex in South Africa and beyond.

When things are not going your way, and you have lost money on a series of bad trades, it can be tempting to gamble.

Unfortunately, just because you have lost on a number of consecutive trades does not mean that you should be in for a run of good luck.

Next time you feel the urge to do something hasty, stop for a second and ask yourself whether the odds of your trade coming good are really stacked in your favor. Research really is the only tool you have to ensure that your trades stand the highest possible chance of being profitable.

However, one of the main risks that novice traders make when they start out is overthinking their trades. You do not need to look at one hundred different indicators and spend an age coming to your decision. The key to making money is moving quickly. If you are too ponderous, you will miss the boat on a trade no matter how much time you have spent on your research. Every experienced trader has their own tried and tested trading strategy.

If you ask them the key to profitable trading, they are likely to tell you that their success comes from building a good trading strategy and then sticking to its principles at all times.

The worst thing you can do is to let your heart rule you your head. There is no room for sentiment in the world of forex trading — when it comes to currency, all that counts are the cold, hard facts. When you first start trading forex, it can be to work out what kind of trader you are going to be. There are many different strategies, some of which are geared more toward the short term and others that have a longer outlook.

If you start picking and choosing which principles you will apply to each individual trade on an ad hoc basis, you will more often than not end up losing more money than you make. The final mistake that novice traders can make is entering into too many trades at the same time. Every single trade that you make requires you full care and attention.

Overstretching yourself will prevent you from dedicating the time and effort that it takes to first thoroughly research a trade and then to monitor it carefully enough to know when the most opportune time is to close.

Not only is this true, but by making a high number of smaller trades which have not been researched properly, you will limit your profit potential in the event that you do win big on one of them.

Entering the exciting and sometimes turbulent world of forex trading can be a rewarding experience. Winning is a great feeling, but things can quickly stop being fun if you start to lose money. As with any type of gambling, the value of proper research and a watertight strategy cannot be understated. Avoiding the pitfalls mentioned above should put you on the fast-track to forex success.

Table of Contents 1 1. Do NOT Gamble 2 2. Do NOT Overanalyze 3 3. Do NOT Make Emotional Decisions 4 4. Do NOT Make Ad Hoc Changes to Your Trading Strategy 5 5. Do NOT Enter Too Many Trades at Once. Louis Davis. Previous Article Nine University Reviews — Reasons to Enroll in an Online Amazon FBA Course View Post. You May also Like View Post. View Post. Search for: Search. FOLLOW US. LATEST POSTS. How to Increase Your Chance of Winning the Lottery.

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Read on for the A-to-Z in things not to do when trading forex in South Africa and beyond. You have entered an incorrect email address! If you can determine what motivates the large players, you can often align that knowledge to your advantage. Discipline is the ability to be patient—to sit on your hands until your system triggers an action point. Given its low commissions and fees, the Forex market is very accessible to individual investors.

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