You can make big money by trading in Forex. On one condition: that you know how to learn from mistakes. This article will help you avoid repeating those mistakes.

We see how traders make the same mistakes; they lose for the same reasons, and without going back to think about why they lost, traders easily fall into the same mistake "traps" that are easy to start down that path again.

The main mistakes of traders are:

• Lack of discipline
• Not using a trading plan
• "Overloading" the account
• Accumulating losing trades
• Closing profitable trades early and keeping losing ones
• Impatience
• Not increasing risk during success
• Lack of capital management strategy
• Not using stop-loss orders
• Changing the trade plan during the trading process
• Not holding trades as long as necessary
• Not withdrawing profits from the account

Now let's examine each of these in depth, one by one.

1. Lack of Discipline

When helping other traders and from my experience, I've seen that the biggest cause of losses is lack of discipline. Discipline means planning, implementing, being patient, applying consistently, managing profits, managing risk, etc. Trading is a game for disciplined players. Some beginners start trading after learning a few systems and depositing money into an account. They think they will be successful by knowing a few systems without discipline.

2. Not Using a Trading Plan

In any sport, a coach would tell you "you must have a game plan!". It's the same in trading. I talk to traders a lot and know that one of the mistakes traders often make is not having a specific trading strategy. When I ask them how they started trading, they say: "I thought EUR/USD would rise to $1.3000. What do you think, where should I buy?". My answer is: "How much are you risking on the trade? Where is your target? What is your stop-loss price? What do you think about this?". And there is no answer to this question... My next question is: "If the pair drops, where and when do you think you'll exit?". I often get the same answer. Most traders I encounter have no idea about strategy. They'll just buy and if they're right or wrong, they don't know what to do. True, they'll stay in an active trade because they don't know when to exit, and that's not the right move. Successful traders should know and prepare a trading plan only when they're sure they won't give a good trade. That plan should consist of these factors:

• You should know where and how you're preparing to enter a trade.
• You should know how much money you're preparing to risk on the trade.
• You should know where and how you're preparing to exit if you're wrong.
• You should know where and how you're preparing to exit if you're right.
• You should know how much money you'll make if you're right.
• Your profits should provide a protective "stop" against your moves.
• You should have an approximate idea of when the market will reach your target.
• You should have an approximate idea of when the market will start moving. If it doesn't move as expected, you should exit!

3. "Overloading" the Account

Some traders think they should either multiply their position or take a lot of profit by taking a big risk on one trade. But what if this trade goes wrong? Then they must be prepared for loss. "Overloading the account" means you're risking too much on one or two trades. Only small amounts should be risked, maximum 2%. If you're already risking 50% of your account, this could be your last trade. Many justify this action to themselves. A lot of luck is needed to succeed in such extreme trading. I manage my positions very carefully. I manage my positions very carefully and you should too. This is the way to avoid addiction from extreme trading. Becoming a successful trader and growing your account is the fastest way.

4. Closing Profitable Trades Early and Keeping Losing Ones

This is one of the frequently made mistakes among Forex traders: taking small profits and creating conditions for losses to grow. This is a natural result of not having a trading plan. After one or two losing trades, you'll most likely take a small profit on the next trade to cover your losses; whereas, that trade could have brought more profit. Allowing losses to grow is frequently observed among beginner traders. It's not uncommon among professionals either. You don't know where you'll exit after entering a trade. When you start losing money on a particular trade, you allow losses to grow even more. You hope the market will turn back and you'll close the trade at least without loss. This happens very rarely. In short, by placing a stop-loss, you prevent losses from growing and leaving the market with small profits.

5. Accumulating Losing Trades

This is a mistake earned in most futures markets. In Forex they can play with 1:100 leverage. This means with a $1,000 deposit you can play with $100,000 worth of units. You often buy and the price drops. You think it's better to buy now and you buy again. This repeats and you continue buying as the price drops. If the market continues to move, if the market goes against you, you lose a lot. This means you were winning at the same time. This is a terrible strategy! I know some people will respond like this: "But the market will turn". Certainly. I don't trade like this, but some managers follow this strategy. Your target determines all new trades.

6. Impatience

...Or trading for the sake of too much enthusiasm for profit. Not all traders trade because they want to make money. Many people trade for excitement or entertainment. They don't wait patiently for a good trade. If you want to trade, or if necessary, you should wait 2-3 days, even a week, and enter a trade with a higher profit probability. It's different when you lose money. Impatience will harm you.

7. Not Increasing Risk During Success

One of the mistakes I frequently encounter among Forex traders is that they don't increase risk after a successful trade. After several successful trades close successfully in a row, many increase the volume of their positions, but they usually do it too soon or too much. If there's more money in their accounts at the end of several trades and your self-confidence increases, you're encouraged to take more risk. This means a damaging blow hurts more profit. This puts your profits at significant risk. This can lead to risking up to 25% of your account value. If you're succeeding, don't change anything, continue working with your system. If you continue to succeed consistently and your account value has increased by the end of the month, then you can increase your risk a little. But you should do this by increasing from 1% to 2% or from 5% to 6%. This step will help you continue your success and will also limit the reduction of your earnings during an unsuccessful trade.

8. Lack of Capital Management Strategy

I constantly observe the mistake of traders who don't have a capital management concept. I constantly listen to traders' questions. Traders open trades with a profit/risk ratio of 1:2+ where they can make $1,000 when they're right, and lose $2,000 when they're wrong. This is a trade that leads to defeat. The mistake is that the profit/risk ratio can teach you by looking at how much you'll make when you're right and how much you'll lose when you're wrong. If you'll lose more money when you're wrong, what percentage of successful trades should you have, and overall, what's the chance of making money? Do you have a chance to be right? What's the chance of being wrong or losing money? In good capital management, you should know your profit target and also consider your risk with a protective "stop". That is, if you could lose $1,000 if you're wrong on a trade, make $500 if you're right, and make 10 such successfully planned trades, you could lose $500 after 10 trades. That is, trades where you'll be right one out of every 3 times. The way to solve this problem is to develop a capital management strategy. You could write a book on the principles of capital management, but your current profit/risk ratio will help you forecast your main earnings for yourself.

9. Not Using Stop-Loss Orders

This mistake is also related to an insufficiently prepared trading plan. Most trade in "real time" mode like us, so many real trades don't have "stops". But there are many accounts managed by professionals who trade with "stops". Forex traders often use mental "stops" because prices can move positively and they expect the trade to move in the direction they planned without "real stops". This can lead to refusing to use "stops". But we know that the market doesn't always move as we plan, we need to place stops correctly. That is, rather than having a trading plan and using a mental "stop", it's better to place a real stop-loss at that price and allow the trade to move into profit. This way you'll make decisions based on logic rather than hope. How many times have you seen risk exceed acceptable limits when using mental "stops"? You probably think the market will go a bit more against you until acceptable, then turn and head toward your target. But it doesn't move and you exit the trade. Unfortunately, in most cases the market remains in that situation and everything ends with a big loss. You know in advance how much you're prepared to risk and hope to win. But the next day the market goes so much against you that you already want to close your position, but your losses are too big and you hesitate to do it. There's an old saying: "Your first loss is your best loss".

10. Changing the Trade Plan During the Trading Process

Approaching the market calmly and with rational thinking during trading is better than struggling with emotional fear and greed. The advice is that you should calmly determine what you want to trade during the weak Asian session. But implementation shouldn't continue until the London session starts. At night, you do almost the exact opposite of what you planned. Unless there are extreme situations in some cases, it's better to follow your trading strategy. Execute your planned trades. Prepare a trading plan before starting to trade in the market, and not changing it according to the results of individual trades is one of the skills of a disciplined player.

11. Not Holding Trades as Long as Necessary

One of the mistakes made in the currency market is holding a trade longer than necessary. Some traders simply plan to take profit at a predetermined price. This is such a mistake that it allows them to make more money while the market is still continuing to rise. At the same time, many real profits can turn into losses over time, so traders should plan when and how to protect their profits. After a trade, when you reach your target or if you're still in the trade, this is called holding the position excessively long. Control your situation, follow the market's movement and see how you're watching your profits evaporate. At that time you keep the trade open saying "maybe it will come back". But it doesn't come back and you lose all your profits saying "maybe" and then start losing from your position. You already know you're holding the position longer than necessary. When you reach your target or when there's a counter-movement signal to change movement in the market, even when it moves very strongly in your direction, at least slide to your target with a "moving stop" or use a trailing stop.

12. Not Withdrawing Profits from the Account

There's a possibility that Forex will make you quite a bit of money someday. But many traders don't withdraw profits from their account. This is a mistake. If you have $1,000 in your account and you've made $1,000 profit, withdraw the money from the account on time. But don't withdraw completely, because traders try to use more money. This, by withdrawing part of the money, also takes all their profits from these trades. The way to prevent this problem is to set up a plan to withdraw money in advance. Some professional traders make profits in forex, withdraw money from the account and spend it on something else for another purpose. To be more successful in trading, this is an important factor. Withdrawing money from the account will motivate you for this work.

I hope this article will bring you clarity. You shouldn't get too inflated after a few successful trades, and you shouldn't get too disappointed after a few unsuccessful trades. I hope this article will be enlightening for your trades in currency markets. If you started trading with a $5,000 account and you're risking 8% on a trade, the big loss is $400. In a $1,000 account, this loss is $80. After 5 trades in a $1,000 account, you can already lose half of the account. The bad part is that after a few successful trades you get inflated again and fall into the same trap. This is also not successful. When I first started trading, my biggest loss was in these small positions. When I first started trading, I made a few successful trades and thought that even these small positions would create conditions for me to give big losses. That's exactly why my successful and unsuccessful experience in trading over the last 4 years taught me to act differently. This is related to everyone's individual character, emotional resilience and skills. Don't chase money, it will trap you. Most people try their luck in the forex market because this is a big emotional trap. When you experience a big loss, when you're under big emotional pressure, you won't make rational decisions. You should try to trade according to your predetermined plan. But when you're in the desire to go in your direction, after some time, you'll see the trade is wrong. And you'll realize one day, or a week later, that you're in a wrong trade. Because when you're in a trade, time is needed to realize the trade is wrong. If you avoid the mistakes shown in this article, you will make money in forex. You need to research and clarify why the market that's not going in your direction is not going in your direction. Or you should get help from a coach. Sometimes a trader needs a consultant. Or get advice from your broker. (Some brokers offer profitable trading experience). This is just a beginning. Your success is in your hands. Professional traders are disciplined because they're inclined to make money.

This is just a beginning. I hope it will be the most successful of trades in currency markets. Always consider it as a system, plan, strategy. The market, when and how much to risk, enter, be patient and when to leave the market. But to answer all these questions, let me say that you should write this on a piece of paper and read it before starting to trade. For those who want to find a way to make money, let me say that it's possible!