If you were to take every trader in the world and separated the ones who knew how to succeed in forex month to month and the ones that are breaking even you will end up with a lot of wasted money. In fact only about 10% of traders either break even or turn profit. You may ask yourself how the 10% succeed in such a market.

There is no exact method to what they are doing. There are though a few flaws that if you avoid will increase an investors chance of being successful greatly. I am not claiming to have found a secret breakthrough, but rather a little information to help avoid currency trading mistakes. This is your one stop forex fix.

No. 1 Trading Flaw - No Trading Method

If you want to be constant with your trades you need to find your trading method, which is just an understanding of how to look at the markets. If you plan to play the market for a while you don't want to deal with guessing games. You need a method so that you know what you should buy or sell. You need to write down a plain of attack ie.. do your research.

No. 2 Trading Mistake - No Set Discipline

After you have identified and researched your trading method, you must use discipline in your system. Note the fatal flaw is not having discipline. If you are looking at or approaching a trade differently from how you were in the past, then you haven't identified your trading method or else you have no discipline on the method you have already identified. If you want to succeed and not make currency trading flaws, there must be consistency.

No. 3 Trading Mistake - Setting Your Goals Too High

It is possible to experience very profitable trading results in your account. Bit this is difficult to achieve without taking the risks that are above average also. So within your first year of becoming a trader don't try to be over realistic and aim for 50% - 200%. Within your first year you should aim for 0%. I am not talking about losing your money but more like staying within the market and educating yourself so within the second and third year you will succeed.

No. 4 Trading Mistake -

Having no PatienceYou must have patience. Only about 20% of the time the market is trending. So you guessed it the other 80% of the times the market isn't going in one clear direction. Now look at it like this, there are only around three good trading opportunities at any given time frame. Meaning if you are a short-term trader you will only have around 3 very successful trades a week and for long-term traders you only have around 3 successful trades per year. I understand trading can be very exciting at times and very often you feel like you want to trade more or else you will be loosing out out on an opportunity. Have patience and don't worry about missed opportunities there will always be another opportunity out there.

No. 5 Trading Mistake - Manage your Finances

The last tip i can give is to keep track of your finances. I feel that most traders trade under funded or else without enough capital in their trading account to trade in the market. If you are trading with small trading accounts then trade small. Remember if you want to be consistently successful then you must learn how to survive through time. Don't risk too much or else you can only afford a couple consecutive looses. This flaw deserves more explaining even though you just need to be logical with your trades.

Final Thought on Foreign exchange trading mistakes

To make real money with trading it takes persistence and hard work. If you think otherwise, then you are on the wrong track to success and it might be wise to rethink your methods. If you work really hard you will reap the rewards. A couple good trades and you are on you way. Just try not to get caught in these forex trading mistakes. I hope you gained a little information at my one stop forex fix.