Forex trading can be a complicated business. More often than not we know what bad things can disrupt our trading. Greed, distraction, poor money management skills. We tend to think that if we can only eliminate these problems then forex success would be easy.
However, there is another problem, one that comes from having ‘too much of a good thing’.
These 5 events are undoubtedly positive, but they can often lead to the opposite.
However, there is another problem, one that comes from having ‘too much of a good thing’.
These 5 events are undoubtedly positive, but they can often lead to the opposite.
Making too much money early on
The best thing that can happen when trading is to make money and to make too much is even better. But if you make too much money too early, while you are only just getting started it can lead to overconfidence. That overconfidence can lead to complacency, and in turn that can lead to ruin.Hitting a lucky run
For exactly the same reason, being lucky in the market can be a big problem too. Striking lucky in the market feels great at the time but all too often it leads to greater risk-taking. You start to feel invincible and that you are a natural and that means you start seeing ‘bad luck’ all of a sudden.Finding an unexpected entry (without an exit)
Forex trading is about scouring the price charts looking for profitable patterns and setups. Sometimes you come upon a setup that you weren’t expecting, in a timeframe or market that you don’t normally trade. The setup is too good to pass up so you make the trade. However, by doing so you forget about important criteria such as your money management rules, your trading plan and your exit.Trading in a bubble
We’ve seen it happen so many times in the stock market but it happens in forex too. Traders getting on the right side of a bubble and riding it to the top. Problem is, those who are in the bubble often don’t know when to get out. They often end up staying in the bubble while it pops and then trying to get back in all the time the bubble collapses.When you move your stop and make a profit
Usually, it’s not wise to move your stop after your trade has been placed. Your trading plan should dictate where to place your stop according to your money management rules. Sometimes, if you move your stop, you end up making money, a lot of money. And if you had left it where it was you would have lost. The difficulty with this approach is that it’s down to luck and the reward that comes from making the mistake just reinforces bad behaviour.
Editors’ Picks
EUR/USD keeps the bid bias just over 1.1800
EUR/USD has started the week on a positive foot, hovering around the 1.1800 region in the latter part of Monday’s session. The pair’s recovery comes on the back of a decent decline in the US Dollar, as investors keep their attention on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.
GBP/USD looks stuck around 1.3500 amid firm gains
GBP/USD is pushing further north on Monday, revisiting the 1.3500 hurdle and beyond. Cable’s uptick is largely being fuelled by the broader softness in the Greenback, amid lingering uncertainty around tariffs.
USD/JPY recovers early losses as investors look beyond US SC’s ruling
The USD/JPY pair recovers almost its entire early losses and trades marginally lower to near 154.85 during the European trading session on Monday. The pair bounces back as the US Dollar claws back its initial losses, driven by the United States Supreme Court’s ruling against President Donald Trump’s tariff policy.
Editors’ Picks
US Dollar struggles as Trump tariff uncertainty grows
The US Dollar struggles to stay resilient against its rivals to start the new week as investors assess the headlines surrounding the US trade regime. After the Supreme Court ruled against US President Trump's tariffs, Trump announced that he will hike global tariff rates to 15%.
Gold pops above $5,200, four-week highs
Gold is holding onto its bullish tone on Monday, reaching new multi-week highs just past the $5,200 mark per troy ounce. Fresh trade-war concerns, coupled with rising geopolitical tensions in the Middle East, are keeping demand for the yellow metal well on the rise.
EUR/USD keeps the bid bias just over 1.1800
EUR/USD has started the week on a positive foot, hovering around the 1.1800 region in the latter part of Monday’s session. The pair’s recovery comes on the back of a decent decline in the US Dollar, as investors keep their attention on the evolving US–EU trade relationship after President Trump’s announcement of sweeping global tariff hikes.
Crypto Today: Bitcoin, Ethereum, XRP intensify sell-off as tariff uncertainty weighs
Bitcoin, Ethereum and Ripple are trading amid increasing selling pressure at the time of writing on Monday, as investors react to fresh trade uncertainty over US President Donald Trump’s push for more tariffs.
Supreme Court nixes tariffs, Trump teases 15% global tariff
On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.
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