1. Usage of extreme leverage – leverages in the Forex market could extend till 1: 500 proportions. Although the leverages are providing the option of dealing with high amount of money with lower risk factor, it may also give a circumstance of significant loss at some point. This may happen if the market is moving in a direction which is unintended.
2. Over trading – trying to get more trade opportunities by increasing the leverages to an extreme value will definitely create the chances of making many mistakes. Over trading has the chance of leading you to the poor trade execution.
3. No trading plan – trading without a plan to be specific is like planning yourself for a definite fall. Having a clear and fine plan before starting to trade is must to attain success in trading.
4. Using the automated software – many new comers to the market will usually go with the software that were sold with a guarantee that it will predict the future correctly. But it is absolutely false thing and this is quite big mistake done by many in the market now.
5. Trading against the trend – this is another worst scenario which will definitely lead you to failure in the market. An investor must have to be in trend so as to meet the needs of the clients. When the investor is out of trend, then he may not grab the attention of clients.
6. Trading without training or experience – it is must that one should have little experience at least or a formal training to handle the situations in a market. Many new comers fail to be successful because of lack of experience and training about trading.
7. Emotional trading – this is another reason for failure in the market. Some marketers will get to take decisions with emotional ideas. This may sometimes go successful but also can go into failure. So it is better to avoid emotional decisions in the market.
8. Lack of patience and discipline – this is the scenario that usually occurs with new comers. Everything needs a disciplinary move in the market. When there is a lack of discipline, then it is quite sure that you are digging your own grave in the market.
9. Trading the news – it is better to have all your details regarding the market to be kept as secret. Not just your information, but also the whole market data if you get to know. Trading such data to people in other market will end up in market loss.
10. Repeating mistakes – even after knowing that you are doing a mistake, and then repeating it again is the worst thing. You have to correct your mistakes to be successful.