Trade Forex From Home - 10 Biggest Mistakes New Forex Traders Make (And How To Avoid Them)


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Its a fact that 94% of new Forex traders fail. Read the '10 Biggest Mistakes New Traders Make' so you don't make them too. The report has been written by me, Annabel Meade from I educate people to work less and earn more trading the Forex market. How much would you like to earn working 15 hours or less per week?

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Trade Forex From Home - 10 Biggest Mistakes New Forex Traders Make (And How To Avoid Them)

  1. 1. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) Any unauthorized use or distribution of this product is strictly prohibited and any such action will be fully prosecuted. No part of this may be reproduced without permission from the publisher. Earnings and Financial Performance Disclaimer Every effort has been made to accurately represent this product and it's potential. Even though this industry is one of the few where one can write their own check in terms of earnings, there is no guarantee that you will earn any money using the techniques and ideas in these materials. Examples in these materials are not to be interpreted as a promise or guarantee of earnings. Earning potential is entirely dependent on the person using our product, ideas and techniques. We do not purport this as a “get rich scheme.” Any claims made of actual earnings or examples of actual results can be verified upon request. Your level of success in attaining the results claimed in our materials depends on the time you devote to the program, ideas and techniques mentioned, your finances, knowledge and various skills. Since these factors differ according to individuals, we cannot guarantee your success or income level. Nor are we responsible for any of your actions. Any and all forward looking statements here or on any of our sales material are intended to express our opinion of earnings potential. Many factors will be important in determining your actual results and no guarantees are made that you will achieve results similar to ours or anybody else's, in fact no guarantees are made that you will achieve any results from our ideas and techniques in our material. In no way would we ever be responsible for any actions that you take from this report. You also agree by reading this report that you will never sue or bring any lawsuit against the writer of this report or any site listed in this report. Page 1 of 7
  2. 2. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) Why Do 95% Of Traders Fail? What Are The Biggest Mistakes Forex Traders Make? OK, so this is a well-known fact. So what can you do to avoid joining the masses? By reading the mistakes below you can learn from traders who have tried, failed and burnt a whole in their pockets…and then some! You can learn from other's experiences - this process is less painful for you and much less costly too! But maybe you have prepared yourself well. Read lots of books, surfed the net for videos and tutorials, logged on to a few webinars, attended some seminars, chatted to those more experienced, bought expensive software hoping that will give you an edge, researched a good Forex broker and opened a demo account waiting to transfer funds to a live become an active Forex trader. Congratulations, you've done it, you've made it. All that work – surely now you're a proper Forex trader. So why do so many people get to this stage and STILL lose all their money? Well learning and practicing with paper trading and a demo account still leaves you with much to learn when it comes to risking your hard-earned capital. You see the emotions associated with money are strong – especially if we have had a long journey already to building a good trading fund and going through the considerable learning process mentioned above. By now you have probably spent much time learning – now you want to see the profits…right? You want to make money from all this time invested in learning – am I right? I don't blame you because that's exactly how I felt and many others are in the same situation too. But, all the learning you have done is great, but its only half the process to becoming consistently successful as a Forex trader. The other half is YOU. How you interpret what you have learnt and more importantly how YOU use the information. If you are really serious about making it as a Forex trader for the long-term then you need to understand and control the way YOU think AND behave when trading. So are you ready to get started? OK here are the 10 most commonly made mistakes: #1 Mistake - Trading With Your Emotions And Not Keeping Detached From Your Trades. We have already touched on this above but what does this mean? Well, you may be surprised by the fact that many find this the hardest part of Forex trading and fundamentally is the reason why most people fail. The way to avoid making this very common mistake is to formulate a trading plan, back test it using your charting package going back over the last year, analyzing how successful your strategy would have been. Once you have this write down a trading plan. Page 2 of 7
  3. 3. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) Develop confidence in your strategy and ability to enter and exit winning trades and then open a live account. Trade with the minimum amount your broker will allow and then the most critical part. TRADE YOUR PLAN. After planning your trades, you must then trade your plan. You must learn how to become automated in your approach and emotionally detached from all your trades. You must ALWAYS stick to your plan. No excuses. No ifs or buts. PERIOD. How else will you know what works and what doesn't if you keep changing your mind and let greed, fear and expectations get in the way? Take a look at this video interview with Stuart McPhee of The World Money Show To summarize – keep your emotions in check and detach yourself from your trades. #2 Mistake - Not Having Discipline. This goes hand-in-hand with the above. Being able to trade your plan, enter and exit trades with the same information, time after time, will make you a good, consistent trader. This again is where most people fail. Why do you think Forex Robots and automated software are so popular today? People lose money when they are unfocussed and don't have the level of discipline needed to be consistent in their trading decisions. To summarize – be regimented and automated with your trading and above all stick to your trading plan. #3 Mistake - Not Having A Note Book To Keep A Record Of All Your Trades. A good way to improve as a trader especially when you are formulating your trading plan is to keep a record of your trades. This way you can go back at the end of the week and month to assess your own trading. This tells you what's working and what you can possibly remove from your strategy. Note down your entry level and why you entered when you did. Identify your stop loss and the amount of stake on the trade. Note how the trade is developing and how you feel. Do you stay in the trade until the maximum level of profit is reached? Did you come out of the trade early therefore not maximizing the profit potential of the trade? What triggers are you looking for as an exit strategy? Note down how many points/pips you gained. This helps grow your confidence as you can look back to see your progress. Every trader will trade in a different way so your own development and self-awareness is very important. You can easily identify your strengths and weaknesses by using this technique and in a way become self-taught. Page 3 of 7
  4. 4. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) To summarize – write all your trades down in your note book. You will be learning mostly on your own and this will be your only source of reference to learn from. #4 Mistake - Making Your Trading Strategy Too Complicated. KISS – Keep It Simple and Straightforward is the key. A common mistake is to make your Forex trading strategy too complicated. There is nothing wrong with looking to see what different indicators do and the results they bring but don't choose them all! Paper trade and use a demo account to learn which indicators and chart settings you like best and which bring you the best results. Your note book will help you to develop this too. Why do we keep the trading strategy simple? Well this is especially true if you trade the smaller time frames. You will need to make trading decisions quickly. Once you miss an entry point then the trade is lost. The less information you have to analyse the easier it is to decide to make the trade or leave it. It is as cut and dried as that. It’s a black and white situation. Either you decide to enter the trade, or you don't. This also goes back to the previous points of having the discipline to make that call and have a good, clear trading mindset to act on your decision. To summarize – you want to make sure you can jump on to a trade as soon as your set up presents itself. This is much easier to do if you have a couple of things to confirm a trade entry – rather than many! #5 Mistake – Not Sticking To Your Trading Plan. Deviating from your trading plan is never a good idea. The only way you are going to know what works and what doesn't is to stick by your plan. By the time you are trading with a live account, you should have a trading plan which has been rehersed many times. Stick with it and have confidence in your knowledge, understanding and experience. Because of the nature of the Forex market, trading is based on probability – you will not win every trade every time. That's a fact. Have comfort in the knowledge that know-one can be 100% accurate all the time – not even an automated system or Forex robot. You have to go with what works most of the time and is why having an active stop loss and good money management skills will minimize the losses you will have. This is also why its recommended to move on to trading a live account as soon as you have consistent success with paper trading and then using a demo account. Once the practice has been done, you are clear how to use your charting packages and place trades with your Forex broker, then this is a good time to start trading with your live account. To summarize – ok, I will put my hand up to this one! Yes I have gone against my trading plan and lost out. It was during those early days of learning – made sure I learnt from that mistake! Page 4 of 7
  5. 5. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) #6 Mistake – Risking Too Much On One Trade. Not doing your homework and fully calculating how much of your trading account you can afford to risk on each trade, is a common mistake people make. The only way you will stay in the game long enough to combat any weakness to your strategy and mindset is to protect your hard-earned capital. The maximum you should be risking is around 3%. The temptation is to see profit potential and trade with more money, therefore risking more of your account size. Your trading psychology and trading plan will have a part to play in the risk you take on each trade. Greed and stress don't go well with successful trading careers. Make sure you are not risking more per trade due to the need to keep up with mortgage repayments or general day-to-day living expenses. Having this weighing on your mind will not help you make the best decisions for your trading and money management so make sure you have these costs covered before you embark on your trading career. To summarize – make sure you do stick to the maximum 3% risk to your account. I would be a shame if you lost out on the opportunity of trading the Forex market for the long term just because of one greedy, emotional mistake. #7 Mistake – Over Trading. Over-trading is common, again for many reasons including excitement and wanting or needing to make more money. Knowing when to trade is important but perhaps more importantly knowing when not to take a trade is more important. It is better not to trade, or miss a trade, than it is to make the wrong trade. The market will not care if you need to make more money on one particular day. Trade when a set up presents itself – only when your trading plan gives you the entry and exit signals. If you find trading the smaller time frames too stressful, then you can always pull out to a larger time frame. You will have to reassess your risk strategy as you will need to give your trades room to move. This shouldn't be a problem – it's just a small adjustment. To summarize – knowing when NOT to trade is as important as knowing when to trade. #8 Mistake – Not Having A Dedicated Space To Trade And Having Constant Interruptions. Being able to focus on your trading is essential, especially as you start trading with a live account. Have a dedicated computer, clear desk and a quiet space – a home office if possible in order to trade without interruptions. The most successful traders see trading as a business. They are professional, dedicated and focused on the job. The Forex market is volatile and liquid, which makes it possible to trade and make good returns by spending only a couple of hours at your screen. So the time needed to remain focused will be comparatively small compared to your returns. Page 5 of 7
  6. 6. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) To summarize – if you can, have a dedicated area to trade. You will need to focus on the market and your strategy, especially in the early stages. #9 Mistake – Increasing Your Commitment To Trades With Success. If you keep your risk level to 3% then you should be trading for a long time. However, many people don't do this, get excited when they have a big return and a series of successful trades and risk more than the maximum. Remember Forex trading surrenders to the law of probability. What do you think will happen when you trade with more risk? Chances are the next trade will end up being a losing one! By all means keep to the 3% risk and if this allows you to trade bigger lot sizes or pounds per point, then great. Again this is part of the psychology of how you trade. Greed, excitement and spending your profits before you have made them, or over trading just because you want to treat yourself is one of the fastest ways to wipe out your account. It happens to many. One bad decision can close your account for good – just be aware this can happen and you will be fine. To summarize – this is another one of those 'getting greedy' mistakes. Just stick to the plan and because this will automatically increase your account size, this will in turn increase your commitment to each trade. #10 Mistake – Adding To A Losing Trade Hoping That The Trend Will Reverse. 'The most successful traders are those who lose the least, not make the most'. If you are in a situation where your trade is losing you money come out of the trade at your stop loss level. This is where your trading strategy has located this level. DO NOT STAY IN THE TRADE or worse DOUBLE UP ON YOUR POSITION. Hoping the market will act in a certain way, expecting it to pullback or waiting for the trend to reverse is dangerous. The market doesn't care what you hope for, your situation or your expectations so be kind to yourself and minimize your losses. Come out of a bad trade with no exceptions. Many traders make the mistake of doubling up on a losing trade in the vague hope for a trend reversal and they will make their losses back immediately. Traders must realize losing trades will happen. It’s a fact. But it is how you deal with this which will make the difference between a long and successful trading career and total wipe out. I know which category I would want to be in – don't you? To summarize – I traded with someone who doubled up on his position size just to claw back his loss as he expected price would reverse trend. He was wrong and consequently lost a lot of money. I was horrified. Page 6 of 7
  7. 7. 10 Biggest Mistakes New Traders Make (And How To Avoid Them) And Finally… This report has been written by me, Annabel Meade. I am an experienced and successful Forex trader. 'I educate people to work less and earn more trading the Forex market. How much would you like to earn, working 15 hours or less per week?' Please visit: Web site – Blog – On offer are these powerful and popular products to help you succeed in the quickest time possible. Available NOW as fast, quick and easy instant download OR Available to order in printed format Click the link for more information: Here's what Daivd Ross from the UK said: "What a star you are! Trade Forex From Home is an excellent read and just what I was looking for. I got interested in Forex after buying a £2000 software package on trial which I then returned. The problem was it came with a very limited explanation and trying to use it blind resulted in losses and lots of frustration. Now that I've got your book I'll do it the right way! Thanks again and best wishes" Be sure to let me know how you get on and let me know what you think of this report – email me at With best wishes. Good Trading. Annabel Meade Professional Forex Trader Trade Forex From Home Page 7 of 7