This article looks at the mistakes you can make on the foreign exchange Singapore.
There are a lot of mistakes that you could be making on the foreign exchange Singapore. It is important that you know what these mistakes are so that you can try and avoid them when you trade. By avoiding these mistakes you will also be avoiding the major problems that come with them. If you do not avoid the mistakes then you could see major losses with your trading.
The Mistake of Bad Timing
Having bad timing is a mistake that you cannot afford when you trade on the foreign exchange Singapore. If you do not have good timing then you are going to make a loss on the market and this could lead to you ending your trading career before it begins. There are a number of different timing points that you have to consider when you look at the foreign exchange Singapore.
The first point is timing your entry into the world of forex. There are a lot of people who want to trade forex, but never seem to get around to starting. It is important that you start looking at all the information about forex as soon as possible. The longer you wait the more trading you are going to be missing out on.
Another point you should consider is when you are going to trade. You have to time you entry into the market correctly and time your exit. If you do not time this correctly you are going to have low profits and large losses.
Analysis without Trading on the Foreign Exchange Singapore
There are a lot of traders who complete a lot of analysis to ensure that they are making the right choice when they trade. The problem is that they will be analysing the market more than they trade. If you analyse more than you trade you are going to have very low profit levels. This is due to the time spent on analysis taking up the time you should be spending on trading.
The large amounts of analysis may also cause more confusion for your trading than anything else. There are a lot of traders who fall into paralysis by analysis. This happens when you complete too much analysis and start to confuse yourself.
Using Too Much Leverage
The forex brokers based in Singapore do not have any regulations about the amount of leverage that they can offer. This has lead to many of the brokers offering extreme leverage amounts of more than 400:1. This is a problem because many traders use all of the leverage that they are offered. When you do this you could be using more leverage than you should. When you use too much leverage you are going to be increasing the risks of your trading.
It is best to use only the amount of leverage that you actually need. Most expert traders state that you should not use more than 20:1 leverage on any trade. Of course, you can use less than this if you want to. You should also consider how the leverage amount will impact your risk management plan.
Get a free Forex PDF PLUS:
- 14 Video Lessons
- Free One-on-One Training
- A 5000$ Training Account
- In-House Daily Analysis
- Get FULL ACCESS