1 The lack of preparation.
Most traders who want to start with forex trading without proper preparation. These traders can not spend 2-3 weeks surfing the Internet for information on forex trading and have been familiar with the basics, you go ahead and open a forex trading account. These traders soon realize that Forex trading is not easy and there are many things that are overlooked, but now it's too late, they have already lost their money.
2 There are no rules for using money management.
Forex trading is highly leveraged, which means that most transactions are done with debt. This leverage increased business risks and these risks can have a significant impact on a particular account, if the operator does not work how to use. This is why distributors experienced fund managers to use financial rules to advise reduce the risk of loss in their accounts. Management is usually the most effective use of money fund managers state risk management 2%, indicating that you can not risk more than 2% of the account balance in a single business.
3 You do not have any Forex trading system.
A trading system is a set of rules used by forex traders to determine when to enter and exit a trade. Without a system of no advantage to merchants on the market. The aim of the regulation is to establish consistency in trade. A trader creates a trading system and tested for a long time until they can produce consistent profitable trading signals. If a new trading system tested are capable of sustained, profitable forex signals, a trader is an advantage in the market and be able to make money in the forex market.
4 Written not with a trading plan.
A business plan is like a business plan, you should start trading forex without a well-written. The plan identifies the objectives of a trader wants to achieve in the forex trading and how to achieve these goals. The plan covers all aspects of the trade. In regard to the operator, the rules for the management of the funds of the trading system should follow and how to generate forex signals. Finally, a trading plan can be as simple or as complicated as you want, the important thing is that you have the discipline to follow the plan to the corporate objectives established in the Plan.