Page 136 – Common Trading Mistakes

Trading without a stop loss limit order

Trading without a take-profit limit order

Using up too much of your margin – use no more than 30% of your account for any single trade

Trading too many pairs at a time – you will lose focus and get distracted

Trading at the open or at the close – most dealers will increase the big/ask spread

Trading obscure cross rates

Overconfidence – pride cometh before a great fall

False expectation – do not risk money earmarked for your survival

Trading without a big picture plan – make sure you are aware of the 1 minute chart, 1 day chart, 5 day chart, 1 month chart, 3 month chart, 6 month chart, 1 year chart, AND the 5 chart of the currencies you are trading

Adding to a losing position

Lack of focus

Clouded judgement

If in doubt, stay out

To correct errors, take a break, review your recent trades, come up with a revised plan, trade at a different time of day

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