Trading in forex constitutes a considerable risk, and you can lose all your invested capital.If you have basic familiarity with forex trading in Kenya, I am sure you have come across the statement above. Believing in this statement, and letting it get into your mind is probably the biggest blunder that many beginner forex traders in Kenya make.
Pessimism never wins. Fear of failure in fx is more dangerous than failure itself. Fear is an emotion that blocks out reason. When you trade forex with the constant fear of losing all your income, you are bound to fail.
Here are the other common mistakes that many FX traders in Kenya make:
1. Trading against the trend
We have all been here. You observe an uptrend on your forex charts and the next instant you find yourself going short (selling a currency expecting the price will come down).You are trading against the trend.
In order to profit from forex, you need to trade with the trend not against it.
2. Failing to analyze the market
If you are new to forex trading, the fast and volatile markets may make you believe that the whole thing is a gamble.You could never be more wrong.
While there is a considerable amount of currency speculation involved in forex trading, most of it is backed up by historical analysis...
80% of the time, the analysis is spot on but many traders are too eager to enter the market that they never really stop to do the analysis. As a result, only 20% of forex traders ever make money.
The rest have their accounts wiped out in less than 6 months.
3. Trading more than you can afford to lose
As a general rule of thumb, you should never use more than 2-5% of the money invested in your forex account on one single trade.Trades can change unpredictably, and what may have appeared as a winning trade at entry can turn brutal and suffer you huge losses.
For more information about how to trade forex, check out http://www.kenyanpridespot.com.