Why Forex Traders Fail - Forex Trading Mistakes

Please have the 14th January report open and compare the result with the current report.

Fundamentals:

Fed’s Beige Book at 2:00pm. Click Here to learn more about the Fed’s Beige Book.

Tip of the day:

Hope you have read the yesterday tip of the day and analyzed yourself.

So what did you find?

1. Do you think your failure is because of the lack of enough knowledge?

- If you login to your trading platform and don’t know what to do …
- If the charts don’t tell you “Buy”, “Sell”, “Wait for the resistance/support to break and then go long/short” …
- If you go long but the price goes down and you go short and the price goes up in most cases …

Then your failure is because you have not learned enough. So stop trading with the real account and start learning. I do not recommend you to sign up for any training course or buy any e-book because you can learn forex for free. Everything you need to learn can be found over the internet for free. I will keep on posting free training articles on my weblog but it takes time and I don’t know when it will be finished. You can not wait for me to complete my training course. So start learning.

If you have problems in finding free resources to learn or you don’t know where to start, just email me and I will help you.

2. Do you think that your failure is because of your greed?

You have learned enough. You have a good system but you still lose because of your greed. You need to be disciplined to become able to control your greed. For example, make limitations for yourself. Do not make more than x pips everyday. Place limit or OCO orders for your trades and when you reached your limit, turn off your computer and come back the next day. This is how you can control your greed.

3. Do you think that your failure is because of your fear?

Then you have to trade with a very small amount of money. Keep on trading with a very small amount of money for several days. Then when you felt confident, increase the amount of the money gradually.

Read more about these issues:
When you will be a professional forex trader?

1. Euro against US Dollar (EUR-USD):

It broke the 1.4825 resistance and went up as predicted yesterday. Now it is in a correction. If it breaks any of the purple thick lines, it will go to their direction. If you don’t have any open position, just wait for any of the lines to be broken.

The daily is still strongly Bullish.

2. US Dollar against Swiss Franc (USD-CHF)

It broke the 1.0970 support and went down nicely. There is another support at 1.0885. Bears are still so strong. Keep your short positions by now and move your stop loss to a proper position.

The daily chart is strongly bearish and is going down to test the 1.0886 support.

3. British Pound against US Dollar (GBP-USD)

It broke the Bollinger middle band and went up but then returned, tested the Bollinger middle band once again, broke it and went down. Currently it is retesting the channel resistance and will go down if it can not break it.

Daily is strongly Bearish and the 38.20% level is broken which means it will keep on going down.

4. US Dollar against Japanese Yen (USD-JPY)

A strong Bullish signal is formed in the 4hrs chart but the last candlesticks say that Bears are still very strong. It seems it wants to make a consolidation like the one that was started at 3th Jan and formed the ascending triangle.

The daily is strongly Bearish.

5. British Pound against Japanese Yen (GBP-JPY)

As I mentioned yesterday, it will broke the channel and will go done. Hope you went short when it broke the channel.

The daily is showing something very important. It is right above a strong support. This support has worked strongly several times during the past few years. Nobody can say if it will work this time or not but we have to be careful. It is possible that the price bounces up.

6. Euro against Japanese Yen (EUR-JPY)

It has not broken out of the channel yet. It tested the channel strongly yesterday and went up. Now it is going down again to test and it is highly possible that it break the channel this time because usually when the price insists several times in breaking a support or resistance, it will succeed to do that.

The daily tried to break the 160.25 support but has not been successful so far. I think it will do it today. Let’s see.

7. US Dollar against Canadian Dollar (USD-CAD)

It seems the 61.80% level is strong and wants to take the price down like what it did on Dec 17th 2007. But the Bulls have not become disappointed yet and are still trying to break the 61.80% and go up. Today’s candlestick will tell us what will happen.

Further Reading: Before leaving our website, please take a look at the other articles we have published.

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