By following a well-structured Forex Malaysia trading plan, you’ll be able avoid these mistakes.

Overleveraging Your Forex Account

You overleverage a forex account when you open a large position compared to your margin. A small change in the market can result in your positions being liquidated because of an inadequate margin.

You should not use all the leverage offered by forex brokers, even if they offer 100:1 ratios. You shouldn’t make your decisions based solely on potential margin leverage, but instead on specific trade factors that are derived from your technical and fundamental analysis.

Failure to adapt your Forex trading

Forex trading mistakes include failing to adapt to changes in market conditions.

The market conditions will always change, so you must adapt your approach to trading and be aware of the effects on forex. Continue to evaluate market conditions. If a trending movement is underway, a range-trading style will not be effective.

Technical analysis is a great way to find out what trading conditions are prevalent. Be sure to adapt your technical indicators according to the conditions of the market.

A Lack of Awareness Of Current Events

It is important to be informed about current events, and their impact on the forex market. It is important to be aware of what the major events are and how they may affect forex trading rates.

Your technical analysis could be ruined by an upcoming major announcement about the economy of one or both currencies.

You should keep an updated calendar with all the events you can expect and make sure to review it on a weekly and daily basis. You should always plan ahead and be aware of the events that are coming up.

Forex Defensive Trading

Trading forex defensively is another mistake. Many traders have experienced losses or losing streaks. In order to protect yourself from further losses, it’s natural that you trade in a defensive manner.

Refocus on winning trades by taking a step-back and examining what went terribly wrong.

Realistic! It is unlikely that you will retire from the profits of one forex trade. Accept a trading plan that is less than 100% and take profits as soon as you can.

You can also read our conclusion.

Realistic and realistic forex trading is the best way to avoid common forex trader pitfalls. Follow current news and stick to your trading plan.