The thrill and rush of excitement caused by a few successful trades can be inxicating and leave you wanting more –. A lot more! Still, the heart of any investment strategy centers around putting the odds of success in your favour and overtrading in the Forex market can threaten even the best of strategies. forex is a very volatile market and most investors would be wise to follow the advice of Jimmy Rogers, a famous and successful trader who's quoted as saying, "One of the best rules that anyone can learn …. Is to do nothing.".
One of the biggest mistakes that an investor can make is to allow fear or greed to govern the decision-making process. Fear causes investors to close positions too early or to stop opening positions altogether. While fear limits the potential for profit, greed opens up the door to huge and staggering losses. Chasing profits due to fear causes investors to keep a position longer than they should've or to spread themselves too thin. Inevitably, market volatility will swing in the wrong direction and an investor can lose everything!
Any time an investor opens a position there will be risk. The market is always right while even the best of investors are only right part of the time. Each and every position should've a stop / loss order attached to it. Stop orders will limit risk and protect the investor from riding a losing trend too long. Plus, when the order is in place and adhered to, there is no reason at all to…