13 mistakes almost every trader makes


Human beings make mistakes, but not every mistake costs money. In the world of Forex, every mistake has a price tag on it. To help you learn more from others’ failures rather than your own, we’ve picked out 13 of the most common mistakes of traders according to forums. Make a good use of this list! 

  1. The lack of a systematic approach

    No matter how godlike your trading style is, you won’t always do well without a cheat sheet. There should always be a plan, the other thing is that your plan can and should be adjusted under changing conditions.

  2. Lack of algorithm

    Without the algorithm, the risk of losing the deposit increases manifold. A clear algorithm implies a step-by-step sequence of your actions depending on the trading situation.

  3. Not placing stop-loss orders

    With this approach, the trader is sure to be knocked out of the market sooner or later. The more profit you make in the beginning, the harder the blow will be when you lose it all. A good trader never takes a risk and puts a stop loss where it’s needed.

    13 mistakes almost every trader makes

  4. Lack of money management

    Some traders don’t even know what it is. Money management is a large component of successful trading

    • choosing the size of positions;
    • knowing when to increase volume;
    • knowing when to decrease volume.
  5. Closing a trade before reaching a possible profit

    Many people traders close a profitable trade earlier than necessary, losing good money on it.

  6. Lack of habit of keeping statistics

    Statistics is the basis for your trading system. It’s the only way to visually track where you’re making mistakes and where you’re earning. Trader’s statistics is your karma, which shows what you do and what you will do in the future. You can’t eliminate mistakes without statistics, because you simply won’t see them otherwise.

    13 mistakes almost every trader makes

  7. Changing your strategy during trading

    It doesn’t matter how you may justify this flawed practice. You should improve your strategy only based on the statistics and outside of working hours.

  8. Unreasonable risks

    As a rule, they lead only to money losses and huge drawdowns.

  9. Trading while being emotionally unstable

    It is recommended to trade only with a clear head and in a good mood, when there are no obligations or moral turmoils weighing over the trader.

    13 mistakes almost every trader makes

  10. The urge to do everything at once

    The market will (hopefully) always be there, there is no need to rush. If you go overboard today, tomorrow you may have nothing to trade with.

  11. Trading against the trend

    Although many professionals brag about their ability to predict market behavior, trading against the trend is strictly inadvisable for beginners.

  12. Excessive trust in gurus

    No trading guru has ever proven more useful than self-education through statistics and reading the correct literature.

  13. Ignoring important information

    Before you start trading, you need to understand what the trading terminal is, how the margin and leverage are calculated, what is the spread, what factors influence the price change, what is supply and demand, what markets are like, how to analyze, what is liquidity and volatility and many other things. By answering these questions, you gradually come to understand the markets and begin to make the first steps towards a stable profit.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Fundamentals

What Is the Spot Market? Investing Psychology and Why It’s Important How to Trade on the Stock Market What Is Forex Scalping? Idea, Setups, and Drawbacks 10 Stock Trading Terms You Need to Know

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: AUD/JPY, RATE HIKES, S&P 500, WTI Oil

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. AUD/JPY: Rate Falls

Trader’s Tools

Fixed Exchange Rates: Benefits and Limitations

Fixed exchange rates, a cornerstone of international finance, play a pivotal role in shaping global commerce and investment landscapes. This article delves into their intricacies, exploring the historical evolution, practical understanding, and the balance of benefits and challenges they present.

Trader’s Tools

Alternative Investment Options

Traders and investors are increasingly turning to alternative investment options to diversify their portfolios and seek new avenues for potential returns. In this FXOpen article, we discuss alternative investments, examining the types and explaining the reasons why they are gaining

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.