New trader's mistakes - By Diane Holstrom from WorldFXIQ

It was once said, “a smart man learns from his Forex mistakes – but a wise man learns from others’ Forex mistakes!”

When it comes to learning Forex trading, your money is on the line! We want you to learn from others that have forged ahead of you in the learning process.

1.Trading without the proper education
a.Let me ask you – would you be hired as an educator, engineer, accountant, doctor or lawyer without the proper education? NO! Then why do we believe that because we can do this trading thing in the convenience of our home with no boss, no employees, that it should be easy? It’s not rocket science – but you need to be committed to getting educated in order to make smart and profitable trades.

2.Trading without a plan
a.This is a nutty idea – but I would venture to say that over 90% of new traders do this. Why? Because we don’t yet know what we are doing and we are simply feeling our way around. Trading with a plan includes some of the following items:
i.Declaring the pairs you will trade and stick with those for a period of time
ii.Knowing your limit of the number of trades to have on at the same time.
iii.Deciding you will leave a bad trade when it goes against you at 2-3% of your total margin
iv.Understanding that if you don’t know why you are in a trade – you need to leave it.
v.Committed to only training when nothing else is going on; no phone calls or visitors, etc.

3.Trading when emotionally distraught, trying to get over being emotional!
a.Greed and fear rule trading. Greed gets stronger when the trade is going in your favor and fear takes over when the trade is going against you.
b.Emotions rule in either case so deciding not to trade when or if something else in your life is distracting you is the only decision.
c.Emotions keep you from following your plan.
d.There is an old adage – Bulls make money and Bears make money – pigs get slaughtered.

4.Trading when you must have the money
a.This type of pressure puts you in a position of fear. Sound, logical decisions that support your plan will be abandoned. Be wise – know this is not a quick fix to your money problems!

5.Placing an order for the wrong pair
a.The charts are exciting and new at the beginning of your trading career. When you see a pair heading in a direction you don’t want to miss – take one more second to make sure the order you are placing is the one you want!

6.Placing an order for 20 lots instead of 2 lots
a.Ouch, this hurts! Especially if the trade is going against you. Often times traders post different amounts each time they trade e.g. 1 standard lot, .5 lots, .3 or even .1 lots. Be sure you know when you are getting into the trade, how much you want to put in the trade and check it one more time! That extra second it takes to double check could save you lots of money!

7.Placing too many trades at one time
a.New traders are excited to trade and don’t realize the adrenaline that is pumping through the veins. Getting multiple trades on at a time may keep you from managing the money on 1 or 2 very profitable trades because you eyes were off the ball. Be wise. Start small until you are proficient.

8.Placing too much risk on a single trade, otherwise known as “doubling up to catch up”!
a.This happens so quickly! You think you are fine; the trade is headed in your direction. Then, it’s not! So you place another trade in the same direction to “dollar cost average the trade” knowing that it will eventually turn in your favor. But it doesn’t and you now have 3 or maybe 4 trades on the same pair. Now you are stuck holding that one trade and have used up all of your available funds so you’re unable to get into something profitable. Its not fun to sit on your hands and watch the pips evaporate and your account get margined out. Remember it is better to be wishing you were in a trade then wishing you were out of a trade.

9.Placing a trade not knowing why you got in the trade
a.As a new traders you have so much to learn. Someone will call a trade in the news, or from a Tweet. You trust the individual, so you make the trade. Boom! It goes against you! How dare them! Be careful  as you didn’t know why you were in the trade in the first place! Remember it is your money
b.Only get in a trade when you agree with the call.

10.Accidentally going Long instead of Short
a.This is as easy as entering 2 lots instead of 0.2 – be very clear when you pull the trigger the pair you are trading