1. Not using a Stop/Loss
-Many Forex Traders recommend using a mental stop loss. But, how many of you actually follow that stop loss? When price gets to it, are you closing out, or, are you hoping it will reverse back in your favour? NEVER, trade without a HARD stop loss.

2. Proper Risk Management.
-Almost every trader I've met trades with a much larger stop loss than his or her target profit. The ideal system is to have a 1:1 (or better) risk/reward ratio. This way, you only need to win 51% of the time to make money.

3. Trading Around Major News Event
-The liquidity around news events is very thin and very dangerous. Don't trade 30 minutes before or after MAJOR news event if you are looking to preserve your capital.

4. Trading Fridays
-Many traders trade Fridays and end up getting stuck in positions over the weekend. Come to find out, on Sunday, when the market reopens, the trade has moved aggressively against them, causing huge losses or at worst, getting margin called.

If you're a day trader, make sure to close ALL positions before the market closes on Friday.

5. Taking Advice from Daily Broker Commentary
-Brokers main intention is either to take their advice to help their own positions. This might mean they will trade the opposite of the news they gave, in order to take your liquidity; or, this means that they need more people to add to their position (their bias).

These tips are more to benefit the broker and NOT you...Take a broker's tips with a grain of salt.

6. Spending a lot of money for a Forex mentor (Without being able to test it out first)

You don't need to spend $6,000 on someone who claims he or she is a Forex professional.

For example, I have recently been trading with http://www.Free4xLesson.com

They offer a free live trading room, weekly webinars, and a professional forex day trader (Mike Swanson begin_of_the_skype_highlighting*****end_of_the_sky pe_highlighting) who trades his real money account (in front of you) almost everyday of the week.


Just for fun, reply to this post if you have ever fallen for one of these mistakes before...