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How many times have you heard people say that they keep long position opened in the Forex market hoping that the market will make a shift in direction? This happened to most fans of forex. The currency trading can be very painful. They are holding a position too large or have a big ego to admit they are wrong. Eventually get tired of watching prices go too much against them, just hanging out of position.

Many amateur operators deny their losses, like alcoholics deny their drinking problem. There is a strong parallel between an alcoholic and a merchant whose account is being demolished for the losses. Caring for the fantasy of being able to control their losses, however, nothing will change their nature self-denial.

2) Cheap and cheaper

This is a very common mistake, and those who commit it do comparing the current price to 52 weeks of the coin. Many people using this indicator implies that a reduced share price represents a good buy. But the fact that the price of the currency became a higher price in the decade. That’s why it is worth examining why the currency has fallen.

Deterioration of the fundamentals and interest rates are increasing all the possible reasons for the weakening of the currency - but also provide good reasons to suspect that the currency can not increase the short term. It is important to keep a critical eye from a weak currency could be a false buy signal, avoiding the purchase of foreign exchange that just seems a bargain. In many cases, there is a fundamental reason for a sharp drop in prices. Do your homework and analyze the prospects of the currency before investing in it.

3) Collection of high and low

Many started trading Forex without knowing the nature of the market. Unlike the stock market, Forex financial instruments are very fashionable and the trend could be prolonged beyond a period of few years.

Most traders to be the first choice of either high or low the market, and can describe to you the emotion that entitles them to be equivalent to flying an airplane. However, in the currency market, which favors more about the next rather than investment. To be truly profitable in the currency market, they need to take extra care to start a business investment.

4) Guessing and making forecasts

Many amateur traders bet on hunches and use it to make their business decisions. Or you can listen to your family or friends talking about a currency that will get a bill heard of bulls, because the U.S. economy in particular is good. Even if these things are true, does not necessarily mean that coin is “the next big thing” and must run to the nearest phone to call his agent.

Other tips come from unfounded Internet commerce professionals often tout a specific pair of money as if it were a must-buy, but in reality nothing more than the flavor of the day. These councils often currencies do not succeed and go down after purchase. Remember that buying at the tips of the media is often based on nothing more than a speculative bet.

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And don’t forget a simple rule for the 21st century - we live in the world where knowledge quickly enhances the quality of our life.

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