Escon deOjo's Forex

1. Shortage of patience

Patience is one of the most significant qualities that any foreign exchange trader wishes to develop and it is especially true of scalpers who sit watching the market, often for hours at a time. It is easy to suspect that you see the conditions coming right and then to leap in thinking you’ll maximize your profits by getting in early. You did not have the patience to hang around for the signal set by your system. Over trading in this manner nearly always leads to losses in the long run.

Patience is also needed in another situation : when you missed and opportunity for a trade. Might be that you went to snatch a coffee and when you get back, your perfect trading situation has been and gone. The temptation is to jump in and chase after the price, but it can simply rebound on you. Better to attend patiently for the next real trading opportunity.

2. Trying for more

Many people believe that currency exchange scalping strategies will bring them great profits really fast. This is not true. Most scalping systems don’t make many pips on each trade. Many beginners are unhappy by this and quickly start trying for more.

It is tantalizing to let a trade run when you should be closing out, hoping to get bigger profits than your system allows for, but doing this could probably just leave you losing the tiny profit that you virtually gained. The aim should be to make relatively steady profits, accepting some losses but avoid the mistakes that lead to big losses. That way you have a chance of ending up with a profit on the bottom line. So remember, any profit is good profit.

Quiz results: whatever number you checked, that is’s your % risk per trade. So if you checked option 2, you should not risk more than 2 percent of your total funds per trade in currency exchange scalping.