Forex is a short term for financial market. Forex simply means buying
and selling of currencies of different countries of the world. Forex is
one of the largest markets in the whole world with about 4 trillion
dollars turn over daily. Despite this larger amount of money in Forex,
only 5% becomes successful in this profession. Most Forex trainers will
teach you the art of trading without telling you how to be among the top
5% that makes it in Forex. financial market has been a great Avenue to
be financially free but only few individuals in Nigeria knows about this
great opportunity. The irony of the whole issue is that, even among the
new traders in Nigeria, only 2% are successful. I'm going to dish out
some of the costly mistakes of new Traders and also the old Traders and
how to avoid such mistakes.To get more news about WikiFX, you can visit wikifx news official website.
1.
Poor Orientation About Financial Market:proper orientation is very
vital for any business to succeed. You must know how a company works for
you to be successful. Having a large amount of money to invest in forex
market is not a enough reason to start trading immediately. Most
Traders fails because of erroneous information been passed to them my
fellow Traders who are also failures in the industry. Some of the bad
orientations are: turning $100 to $2000 within a week, two days of forex
seminar is enough to be a professional forex Trader, nobody makes it in
forex market and lastly going on live account without practicing on
demo account. As a new Trader, you should do enough research about the
industry before starting the journey. Because, if the foundation is
destroyed there's nothing you can do. This orientation can be acquired
from a reputable forex broker, mentors and reading books on Forex. In
Nigeria, some Forex brokers offers free seminars and you can make use of
the opportunity to ask them questions about the market and how it
works. This will give you an edge as a new Trader and to be successful.

2.Spending
Limited Time on Demo Account:demo account is meant to help you practice
and perfect your trading strategy before moving to Live account. Most
brokers do offer a free demo account for their clients. One of the major
mistakes new traders make is to spend just few days or weeks on demo
account then move to Live account immediately. Demo account helps you to
get familiar with the trading application and the business environment.
Apart from getting familiar with the market environment, you also
perfect your trading strategy before going live. Even old Traders that
are intending to develop a new strategy, should use a demo account to
perfect it before using the strategy on live account. It also helps to
build and develop a strong psychology that will be of a great help when
you start trading Live account.
3.Poor Trading Plan:Forex is
like any other business that requires a concrete plan. Before you start a
restaurant business, you need to plan the location of your restaurant,
the kind of meal that you'll be offering your customers, types of chair
and table to use in the restaurant, and other stuffs. The same thing
applies to Forex market. Forex is a serious business and it should be
treated as such. Your training plans should consist of the strategy to
be used, entry rules, exit rules, risk management and personal journal
to record all of your trades. Most Traders lack the ability to develop
an effective trading plan and to follow the plan accordingly. Without a
trading plan, all you will be doing in the market is gambling. Without
entry rules you might enter the market late or without exit rules, your
positive trades my turn to negative. Also, without proper risk
management, there's 90% chance that you will blow out your account.
Before each trading day, go through your trading plan to avoid mistakes.
It also helps you to keep your emotions in balance. I will advise you
develop a strong trading plans before trading.
Importance of Spotting Profitable Trends-Karen Foo
Now,
spotting a trend is easier said than done. But if you are able to spot
one and ride on it, you can potentially experience a lot of untold
benefits in your trading career.To get more news about WikiFX, you can visit wikifx news official website.
The art of trend following or trend spotting is something that is not new. Traders and investors have been doing it for years.
I
have personally tried scalping, day trading, swing trading and position
trading. I prefer long term trading any day.1. It is a popular strategy
among professional traders

What
if you bought gold when it dropped during the 2008 financial crisis and
then closed your eyes from that point onwards? You would have made a
handsome profit and return just from buying and holding.
One
thing that is common among many retail traders is that they are very
technical focused and they are more inclined to get into day trading.
While day trading may be profitable for a small group of traders, theres no harm to look at what the big boys are doing.
Professional
traders are mostly fundamentals focused and they make decisions based
on leading economic indicators like surveys, housing starts & M2
money supply rather than lagging economic indicators like inflation
rates & new home sales.
Unfortunately, retail traders are
trading based on what the lagging economic indicators are telling them.
That is why they lose big time.
Professional traders hold their
trades for months to ride the trend. While this method may not be
suitable for everyone, the big trends are where the big profits are
made.
2. Less stress, less headaches
One of my favourite
aspects about holding a trade for weeks and months is that it can free
up time for me to do other things. Of course, I have to do the initial
research before I put on the trade.
But once I‘ve put on a
position, I don’t really have to stare at the charts all day, which is
what a lot of beginner retail traders do.
With that said, Ive tried scalping and day trading when I first started out as a trader.
I
find that I‘m mak ing more trades but yet my profits didn’t increase by
a significant amount. In fact, my attempt to scalp led to losses. Maybe
scalping just isnt for me.
Why are there different trading methods in the market? This is
because the effectiveness of any trading strategy is based on the
personality or characteristics of the trader, and the strategy needs to
suit the trader's personal trading style. If a trader's strategy is
contrary to his personality, the trader will definitely not succeed.
Numerous examples have proved this, and the investment circle generally
agrees on this point: the best strategy is the one that suits you, while
what is considered the best by others may not necessarily be the right
one for you! To follow the the rules of trading is to acknowledge and
respect the individualities of traders.To get more news about WikiFX, you can visit wikifx news official website.
Different
characteristics lead to different psychological states of traders
during trading. These psychological states can also be regarded as a
“psychological compound” composed of various psychological factors, some
of which are strong, while others are weak, and they are constantly
changing, rather than set in stone.

According to the characteristics of traders, we divide traders into the following 15 types:
1. Accurate traders: this type focus on the accuracy of pivot points, such as opening positions and closing positions
2.
Administrative traders: they focus on the arrangement and efficiency of
all trading links, including working time, planning, risk control, etc.
3. Artistic traders: they tend to associate trading with art, philosophy, natural laws, etc.
4.
Adventurous traders: they are more aggressive when trading and are
willing to take risks in order to obtain greater benefits
5. Detailed traders: this type pay attention to various details in the transaction and strive for perfection
6. Facilitative traders: they value personal progress, self-education and strive for personal growth
7. Interest-based traders: they treat trading as a hobby and trade just for fun
8. Independent traders: they like to sit at home and trade with their own money
9. Innovative traders: they pursue new strategies and methods, and are always exploring better profit methods
10. Planned traders: they make a complete plan before trading and execute their trading accordingly