What are things that a trader should always avoid?

<p id="isPasted"><strong>If You Keep Losing, Don't Keep Trading</strong></p><p>There are two trading statistics to keep a close eye on Your win rate and risk-reward ratio.</p><p>Your pass rate is the number of trades you win, expressed in percentage. For instance, if you win 60 trades out of 100, you have a 60% success rate. A day trader should work to keep the winning rate higher than 50%.&nbsp;</p><p><strong>Trading Without a Stop Loss</strong></p><p>You should have a stop-loss order for every forex day trade you make. A stop-loss is an offsetting order that gets you out of a trade if the price moves against you by an amount you specify.</p><p><strong>Adding to a Losing Day Trade</strong></p><p>Averaging down is adding to your position (the price you purchased the trade at) as the price moves against you, in the mistaken belief that the trend will reverse. That's a dangerous thing to do. The price may shift against you for a lot longer than you expect, as your loss becomes exponentially greater.</p><p><strong>Risking More Than You Can Afford to Lose</strong></p><p>Determining how much of your capital you are willing to risk in each trade is a key component of your risk management strategy. Day traders would ideally risk less than 1% of their equity in any trade. This means that a stop-loss command closes a trade if it does not result in more than a 1% loss of trading capital.&nbsp;</p><p>That means that even if you lose multiple trades in a row only a small amount of your capital will be lost. At the same time, if you make more than 1% on each winning trade your losses are recouped.</p>

<p id="isPasted">If you want to be a forex trader, you have to have a trading plan. Acting without one will almost certainly lead to losses, so before you get started make sure you sit down and write up a list of rules to guide your trading and money management strategies.&nbsp;</p><p>One of the worst mistakes new traders make is to average down: invest more money in a losing trade in the hope of a rebound. More often than not, it comes down to throwing good money after bad which may exacerbate your losses.</p><p>The key principle of a forex day trader is to minimize losses and maximize profits but, just as some new traders hold on to losing positions for too long, many will also diminish returns by taking profits too early. At first glance this might not sound like much of a mistake – you still made money on the trade after all – but doing it consistently will seriously sap your earning potential.</p><p>Being aware of some of these common mistakes will help you better prepare for, minimize, and hopefully stimulate feedback.</p>

<ul style="list-style-type: disc;margin-left:26px;" id="isPasted"><li>Trading without a trading plan.</li><li>Trading too much, too soon.</li><li>Emotional trading.</li><li>Guessing.</li><li>Not using a stop-loss order.</li><li>Taking too big positions.</li><li>Taking too many positions.</li><li>Over leveraging.</li></ul>

<p id="isPasted">As a forex trader, there are several things you should avoid to increase your chances of success in trading. Here are some key things to keep in mind:</p><p>Overtrading: Overtrading is a common mistake that new traders make. This happens when you make too many trades in a short period, which can result in overexposure and increase your chances of making losses. As a trader, it is important to set a trading plan with clear entry and exit points to avoid overtrading.</p><p>Trading without a plan: Trading without a plan can lead to impulsiveness and erratic decision-making. A trading plan should include clear risk management strategies and entry and exit points. It's important to follow the plan strictly and avoid making decisions based on emotions.</p><p>Trading on emotions: Emotions such as fear, greed, and excitement can cloud a trader's judgment and lead to impulsive decisions. It is important to remain calm and rational when making trading decisions.</p><p>Lack of risk management: Managing your risk is critical to your success as a forex trader. You should always use stop-loss orders and limit orders to minimize your losses and protect your profits.</p><p>Following the crowd: It is easy to get caught up in the hype of a particular trade or follow the crowd. However, blindly following the market sentiment can lead to poor trading decisions. It's important to do your own research and make informed decisions based on your trading plan.</p><p>Ignoring fundamental analysis: Fundamental analysis is an essential part of trading, and it's important to keep up with economic news and data releases that can affect the forex market. Ignoring fundamental analysis can lead to unexpected losses and missed opportunities.</p><p>In summary, forex traders should avoid overtrading, trading without a plan, trading on emotions, lack of risk management, following the crowd, and ignoring fundamental analysis. By avoiding these common mistakes, traders can increase their chances of success in the forex market.</p>

<p id="isPasted">Most beginners jump from system to system or look for supposed experts whose advice they can follow. You can find these beginners in the typical forums, preferably on weekends, because they traded an account to 0 the previous Friday. The supposed experts can also be found there, they present their system there, in most cases based on many indicators, unequal to the first Ghostbusters movie, however, with these systems it is supposed to be good when the streams (lines) of the indicators cross. Other experts there regularly post their unfounded trading calls, preferably with predicted price targets. So the experienced trader knows immediately that it is a bullshitter, which is 3 times half correct, and comes back to the 5th time with a new account because he lost his reputation at his fourth attempt.</p><p>All these things are the worst beginner mistakes because they set the course for the wrong and hopeless development of the aspiring trader. The easiest (I'm not saying easy) way to stay ahead in trading is to look for a foundation that works statistically often enough, e.g. reversal patterns around Support &amp; Resistance areas, where you can win more than you can lose. Then you work on this basis to improve your performance, e.g. by developing skills to read the price action as a filter to get rid of fake signals.</p><p>Ultimately, this is also about the wrong instinctive idea that you need to know where the price is going to make money. Firstly, this is not the case, secondly, it directs the view to the target (profit), whereby the first step should be to stake out your possible loss, i.e. to know where you will cut your losses. The look at the target and the ignorance of the risk makes trading Russian roulette. 9 times lucky, but the tenth attempt kills.</p>