Here are 6 common 
forex mistakes that 
if you made, will ensure
an equity wipe out. 
95% of forex traders 
lose and most make
these common errors, 
so if you want to learn 
forex trading correctly 
avoid them at all costs.

1. Not Having Confidence 

An obvious one - if you 
don't have confidence in 
what you are doing you 
won't have the discipline to execute your trading plan. Most 
traders never get confidence in what their doing, as
they never learn the right education and trust a guru, e-book or
news story. If you want to win, you must fully understand what
you're doing and why it works - so you have the confidence and
discipline to trade your method.

2. Believing Simulations 

How many traders buy a mechanical forex trading system off the
web with a simulated track record and expect it to make them
money? 

The bulk of novice forex traders fall for this but of course, a
simulation done in hindsight, knowing the closing prices is easy
- but trading not knowing them is the hard part! 

All simulated track records make money in hindsight and 99% lose
in real time trading. Most are simply made up by vendors and
combined with some copy to appeal to the greedy naïve investor
who buys the system and gets a wipe out in the market.

3. Predicting Forex Prices 

If you try and predict forex prices in advance you're going to
lose, as it's really another word for hoping and guessing. Never
predict what might happen, trade the reality of what is
happening on your forex charts. 

Predictions in forex will be as accurate as your horoscope and
forget anyone who tells you they have a scientific theory of
market movement - They don't. If such a theory did exist, we
would all know the price in advance and there would be no market
- Period. 

4. Using Invalid Data 

How many novice traders try forex day trading? The majority. 

How many lose? ALL of them. 

Day trading is simply a way to wipe out equity quickly. 

All short term volatility is random and you cannot get the odds
on your side so you will lose. If you want to trade successfully
trade valid data and trade longer term. 

5. Trading The News 

If you could get rich listening to the news then a lot more
traders would make money - but you can't. 

News is discounted instantly and furthermore reflects the greed
and fear of the majority, who always lose. News stories are
simply opinions and you won't make money trading them. 

6. Trying To Be To Clever 

On the one hand there are forex traders who don't do enough work
and on the other hand, there are traders who think they can make
money being clever or working hard - neither however will ensure
your currency trading success. 

In forex trading you get paid for being right with your forex
trading signal and not for how clever you are, or how much
effort you put in. 

The fact is the best forex trading systems are simple and they
always work better than complicated ones, as they are more
robust and have fewer elements to break. 

FINALLY YOU MUST KNOW THIS!

If YOU ARE trading the major error most traders make is NOT
Knowing their trading edge. A trading edge is the reason you
should succeed at forex trading when 95% of traders fail. 

It doesn't matter what your trading edge is but you must clearly
define it and have confidence in it to lead you to currency
trading success. So if you don't know what your trading edge is
- its back to your forex education until you do.