To be a part of the 95% of the traders who bear losses just has to make any one of the mistakes given below. Thus to achieve success in currency trading, one needs to avoid the following.

1. Depending on Others for Success:
The common thinking trend amongst the novice forex traders is that success can be bought with the help of someone else. But even though there are a lot of individuals around to help you , no one will be able to buy success for you except yourself. To gain confidence and to be able to follow any discipline one needs to understand the logic of the system he is buying completely.

2. Forex Day Trading Functioning:
Day trading is never the thing to do, each and every short term movements are being random. The ones who are new, try day trading more with respect to any other form and get duped by exaggerating advertisement and sales copies however.

3. Scientific theory to movement of Forex Markets:
Fibonacci. The best selling courses by Gann and Elliot wave have a grand business but never tend to work i.e. for the reason if the markets functions are based on scientific theories there will not be any markets at all as there would be answers predefined for everything. Still there are people who think that there are methods of beating the market by some scientific formulas.

4. Prediction to Win:
You will never be rewarded for your predictions but will only lose on your equity if you go on predictions, as guessing or hoping seldom helps. Rather one should study the momentum indicators and trade when they are sure that the price momentum has turned their way. In such a situation the chances will be on your side as you trade on reality on the forex charts.

5. Markets Move to Supply and Demand Fundamentals:
To some extent the markets do move to the supply and demand fundamentals but trading on them isn't possible as communication is too fast and the important news in quickly discounted in the value. Thus one can't catch up and win on it.

The best way is to follow the charts and allow the price action to guide you as we are inspired by emotions and thus the costs don't always move the way one wants.

Thus one needs to remember the following equation:-

Supply & Demand Fundamentals + Investor Psychology = Market Movement

6. News sources on the internet are useful:
To keep emotions away from trading one needs to avoid listening to the news, as we have already seen that the fundamentals discount immediately. Again, the news is quite at times not false and basically people's opinions which are quite convincing.

7. Leveraging is The Factor to Gaining Profits:
Excess of anything isn't good. In the same way excessive leveraging is also not recommended. Don't leverage too far, one doesn't need a 400 : 1 ,10: 1 is sufficient for most of the traders.

8. You don't go Broke Taking a Profit:
Trying too hard to mislead a risk and giving yourself no scope of winning, a lot of traders actually create the risk. The losses will never be covered if one doesn't run the profits.

The solution is to take calculated risks. Snatching or tightening stops too quickly wont help.

9. The More Money Put In The More You Will Earn:
Hard work doesn't pay you in forex trading. To be rewarded one needs to be right about the trading signals.

10. Confidence & Discipline Are A Peice of Cake:
The reason why following someone else will not help you in making money is that it takes a through knowledge of the methods followed and your own emotions and discipline and self control come form this understanding. Never try to acquire them.

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