Forex Stop Loss Calculator - Frequent Mistakes Made by Traders With Forex Margin Call Calculator

Nov. 15, 2010 - PRLog -- Forex Stop Loss Calculator

When doing currency trading online, Forex traders make lot of mistakes especially novice traders who are new to Forex trading business.

Insufficient capital: Forex trading allows leveraging in which you can borrow money from Forex brokers to get more profits but it is also very risky. Most of Forex traders do not use around 1 to 2 percent of their capital on any trade position. So, a position traders with a 100 pips stop-loss order, you must only trade a mini lot of single currency pair for every 10,000 dollars in your live trading account. You must not risk all the capital you have for single position which is a big mistake which many beginners make.

Trying to predict the market instead of reacting:

Some beginners are overconfident after winning one or two traders and they start believing if they enter sooner into a trade, they can earn more pips. They start thinking that they can pick the bottom or top of market before it is revealed by market itself. Instead of following the market trends, they start predicting their own values and enter into trade based on that.

Over-trading: Some traders try to trade in too many currency pairs at same time. Instead of using simple strategies and trading with one or two currencies they start investing in many currencies pairs and get into trouble of margin calls and losing focus on particular currency. Due to irresponsible behavior like over-leveraging, insufficient capitalization and over-trading, Forex traders face margin calls and get into losses. Get your Forex Stop Loss Calculator @ http://funeasyforex2.blogspot.com and be Successful forever!

Not using trailing stop-loss: Stop-loss is very important when considering trading to minimize losses. Very big and experienced traders always use stop-loss in trading positions to reduce losses. Professional "scalpers" place their scalp just 10-15 pips beyond the trading position as they look only for small profits. Some Forex trading systems do not allow you to place stop-loss closer to 15 pips, particularly during fluctuating conditions of market. But, you must always place stop-loss orders to reduce big losses.

Adding instead of closing the losing positions: Some traders try to predict rather than acting based on past market trends. You enter a trade and observe market is going against the position which you opened and indicating that you are wrong. It is right time for you close the position and not adding to it. If you add to the losing position, then you are increasing your risks of losing the trade.

Whenever, you see market is moving against the position you opened, close the position and take decisions based on present market trend and not by guessing the future trends. If you avoid such simple mistakes, you can be a profitable Forex trader. Get your Forex Stop Loss Calculator @ http://funeasyforex2.blogspot.com and be Successful forever!

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