Most traders will at sometimes make mistakes when trading the Forex markets. This is inevitable even for the most seasoned of Forex traders. However, recognizing these mistakes and making sure that you don’t repeat the is pivotal to developing Forex trading success.
Here are five common mistakes that Forex traders make. Take note of them and try to ensure that you do not make the same mistakes with your own trading!
1. Trading in the opposite direction to the trend
Forex traders often try to trade against the dominant direction of the market and its momentum. Trading in the direction of the major trend means that you have the backing of market momentum. Only ever trade against the trend once you have sufficient evidence to believe it has ended.