Overconfidence
Some traders think that only their understanding of the fundamentals will lead to success in the currency market, but this belief is completely incorrect. The forex market is a huge market that is highly volatile and susceptible to wild fluctuations of speculation. It is a multitude of aspects of global activity. While trading tools and indicators can help, real forex success requires study and effort. Most novice traders fail in their first year, partly due to overconfidence after a lucky trade. They believe that just the simple knowledge of the market and do not make the effort to continually expand their knowledge base.
High operating leverage
Leverage is a double-edged sword. If used correctly, to significantly increase their investment earnings, but if you're not careful you can also increase the risk of each transaction. Influence is based on the principle of double capital doubling your profit or loss. High leverage can be used effectively by experienced traders with appropriate measures stop loss in place.
Running during operations
Be patient, safe and quiet. Forex market a volatile market that requires attention every step of the way. Study your strategy carefully at every move or decision to make and take into account factors such as time of entry and exit from the market, stop loss and increased orders, etc .. Make sure you have a good handle on their psychology because it will reflect in its operations in a very real way.