Do you know that nearly 95% of all foreign exchange Sydney traders fail to succeed in forex trade? Most traders fail to succeed due to the repeated mistakes that they make when placing a trade. A surprising fact is that a majority of traders are not even aware of the mistakes that they make and this lack of knowledge results in the mistakes being repeated in all their trades.
Top mistakes that foreign exchange Sydney traders make in trading
Most foreign exchange Sydney traders have false expectations from forex trading. They want to get rich quickly by achieving incredible returns on their investments within a few trades. You need to understand that it takes time and effort to achieve success in this volatile market. If you are a beginner you first need to learn to survive in this market before you can start making consistent profits on your trades.
Fraudulent brokers often fool traders who have high expectations by selling trading platforms and other tools at expensive prices. These brokers promise to provide traders with 100% and more returns on their investments. Most new traders fall prey to their clever marketing tactics and lose their hard-earned money.
One of the biggest mistakes that traders make is overleveraging their trades with the hope that they may be able to make big profits. Although most brokers offer leverage of 100:1, 200:1, 300:1 and 400:1, you need to be careful when using it for trading. You may be increasing the risk of trading substantially when you opt to use a higher leverage.
Traders often think that with overtrading and overleveraging they may be able to make big profits. When traders open too many positions at the same time it can result in big losses if the market moves in the opposite direction of the trade. Most traders overtrade because they want to make up losses and want to become rich overnight.
The other big mistake that traders make is to trade without a plan. You may never be able to succeed in this market if you do not have a good trading plan. Planning can help you trade in a disciplined manner and you may be able to avoid emotional and impulsive trading.
Education and experience are important for the success of foreign exchange Sydney traders
Foreign exchange Sydney traders should avoid trading before gaining adequate knowledge and experience as it can result in big losses. You may be surprised to know that most new traders start trading without understanding the basics of the forex market. Lack of knowledge about the different market conditions can result in failure.
Apart from knowledge you also need to gain experience so that you are able to trade confidently in this volatile market. As a trader you should avoid looking at the foreign exchange market as some kind of a gamble and instead look at it as a wonderful investment opportunity. You may be able to increase your chances of success if you acquire knowledge and experience before placing a trade.