Which common mistakes Destroy a Forex beginner: Part-2

Adding to a losing trade

Adding to a losing trade or “averaging down” as it’s sometimes called, is equivalent to not

admitting your mistakes.

As we’ve discussed earlier, successful traders are brave enough to cut their losses. Adding to a

losing trade is doing the exact opposite of this (throwing fuel on the fire).

Sure, sometimes a trade might hit your stop-loss and then turn around and go back up. That can

be very frustrating, but that doesn’t mean you should abandon money management.

Adding to a losing trade effectively ties up more and more of your money in the trades that

aren’t working. It’s putting added pressure on the weakest part of your portfolio. 

This could back

you into a corner, shutting you off from reason or clear thinking. Your trading will become

paralysed by emotion rather than logic.

Adding to a losing trade is the most direct road to ruin that we know of.

Thank you....... 

Wait for Which common mistakes Destroy a Forex beginner: Part-3