So often, people talk about the many potentials of Forex trading but very few ever mention the things and choices that people allow
to interfere with their trading business. This article will focus on some of
the mistakes that traders commit while not realizing that their success will be
limited or destroyed overtime and how to successfully do UAE forex trading.
Not
Using The Stop Loss and Limit Order Feature
The Stop Loss and Limit Orders are helpful tools in helping
traders enhance their profitability and minimizing their risks. A limit order
allows you to set a predetermined profit of level and get you out of a position
once that level is achieved. A stop loss on the other hand works similarly but
will get you out of a position once your loss reached a predetermined level. If
used the right way, these tools can help avoid or minimize catastrophic losses
when trading.
Letting
Your Emotions Get in The Way
While all Forex traders have emotions as human being, there is a difference
between a successful trader and a novice one when it comes to dealing with
emotions when trading. Greed, impatience and fear are the most common emotions
that can destruct one’s trading strategy so be careful with that. Controlling
your emotions can be done more effectively if you have a sound money management
in place...which brings us to the next major mistake:
Not
Having a Disciplined Money Management Plan
Any wise trader will follow a disciplined money management plan
consistently. While discipline is arguably one of the most overused terms in
Forex education, it continues to be the most crucial traits that traders can
master. Trading with sufficient capital, risking money that you can afford to
lose, knowing when to withdraw and deposit – these are all essential things
that you need to consider before you start trading.
Mistakes can be costly and when it comes to Forex trading - just
like any other investments – this can never be truer. By educating yourself and avoiding the
mistakes done by numerous traders, Forex trading can not only be profitable but
rewarding as well.
Please note that there are lot of Forex brokers in Dubai but you should be careful while choosing best forex broker.