Learn how to succeed in forex trading is a difficult task. You can make several errors of interpretation which may affect your analysis and consequently contribute to losses. This article will discuss the main reasons and then the main errors that can compromise our trading work .
Incorrect reading of the charts
The Japanese candlesticks usually offer lots of information and their correct interpretation can be crucial to success in many trading strategies. In fact, many traders, even professionals, commit several errors in interpreting signals from a candlestick chart, and for this reason we want to give you some tips :
- You do not have to concentrate too much on the set – up .To open a trade , the candlestick signal must also be aligned with the other criteria used .
- The Break outs are very popular because they provide forecasts. To avoid false Break out you shouldn’t enter the market until the candlestick does not close through the level .
- The candlestick signal is not valid until it appears at a specific point (depends on the type of signal) . If in the pin bar there is confusion you should be careful as sometimes it is better not to negotiate when there are weak signals.
Wrong trading plans
Many traders set up their trading plans in a superficial way without paying much attention. This is a classic mistake that could also result in significant losses. For that reason we need to plan everything the details and use forex as a real business company planning strategies and making a successful model . Here are some tips for getting a successful trading plan :
- Set the strategy by defining the relevant points and eliminating those that do not require criteria.
- Define from the beginning when you are in a situation of “success” and when it’s better to use the demo account to review your trading strategy. Many traders do not actually know when their strategy is successful and many times this is equivalent to profitability. So it is better to set reasonable goals and determine what to do if the objectives are not achieved .
- The Forex is a very wide discipline on which you will always find something new to learn. That’s why we suggest to set up your own trading plan in a flexible way, you will be able to integrate and modify your strategy taking in consideration your new skills and new knowledge gained .