Are You Making Any of these 7 Very Common Forex Trading Mistakes? | Part 1


Do You make any of these important trading mistakes?

What Forex trading mistakes are you making that stop you from becoming consistently profitable? Are you making any of these 7 major trading mistakes that I am about to cover?

Here at Forex School Online (FSO) we are super lucky because we get to talk to a very wide range of traders and in doing so, we begin to notice certain errors and trading mistakes repeating over and over again – obviously they are common and a PROBLEM!

I see these mistakes being made by both Forex School Online = ‘FSO’ members and traders on the public section of the site who have replied to surveys, taken quizzes and who I’ve chatted to through email.

I will look to add some of these quotes and traders comments into this lesson.

In this super important lesson I am going to discuss for you the 7 major Forex trading errors and mistakes that are really common to traders struggling to find success.

I am also going to include for you a free bonus that you will see at the bottom of the post – this is to help you get more out of this lesson and to make sure the teachings really sink in and help you. The lesson is quite long because the mistakes are so important for you to learn and I did not want to just skim past them.

Let’s crack in!!


1: Lost focus, original purpose and why you started trading Forex in the first place.

This is the perfect place to start.

Most traders come to trading with a major, specific goal or reason in mind as to why they started trading.

NO ONE just wakes up in the middle of the night and walks over to their computer, opens up a new trading account and starts trading.

If a lot of traders could clearly re-define their goals, then their path and exactly what it is they want would start making not only their trading but their overall lives a lot simpler.

When first starting out everyone sees something that sparks something else – they get fed up at work; they have a baby and want more time at home so they start looking for something else; their hours at work get cut so they need more money, or they see an advert on Facebook, etc.

However, everyone comes to trading with a major reason for wanting to trade, i.e. that driving force for why they started looking and became interested.

This can often be very quickly forgotten though. A few months in after starting trading on the smaller time frame charts (such as the 5 minute charts), most traders find themselves staring for long periods and beginning to go crazy.

Now if I were to rewind, and ask them if staring at charts and screens for hours on end, staying up late, getting up early and being away from family were what they were looking for when the started trading, then I think the answer would be no.

You need to remember why you started what you started, what you are doing it for and keep your eyes on whatever your particular prize is.


2: Over-trading

This is the number ONE trading account killer worldwide, hands down, bar nothing.

Over-trading is a bit of a tricky one and there are probably a few more words or names for it than just over-trading. Over-trading is a good term for it because that is exactly what is happening when it comes down to the basics of it.

Some traders, and some who will be reading this, don’t know that they are over-trading. Some traders will think they are not over-trading, and yet they are.

There are other traders that over-trade as an excuse to gamble. These traders may as well be at the horse track, but it makes it feel legitimate or business-like to them, even though really it is gambling. These traders are going to gamble all their money away to the next person through over-trading.

There are also traders that make revenge trades. They shouldn’t, but they do. This is over-trading and boy oh boy does it often hurt trading accounts.

If you can stick to making your high probability price action trade setups and keep away from over-trading, you will already be giving yourself a leg-up from a lot of over-traders and gamblers!


3: Jumping from system to system

Whether you trade Price Action, moving average crossovers or the “Special Heads & Tails System ?”, what is important is that you stop jumping from system to system to system.

Learning How to Trade Value & Testing Systems


Below are a couple of quotes from a recent Forex School Online = “FSO” public anonymous survey;


Forex systems



When learning a trading strategy you need to give yourself the time that it takes. There is a lot more to learning trading strategies/systems than just their rules. Rather than just learning the rules, losing some trades, getting frustrated, moving to your next system, rinsing and repeating, you need to think about trying something that will really work for you. I suggest the following.

First of all, your subconscious is going to play a huge role in your trading success (or lack of it), just like it does in your everyday life. Your subconscious is the thoughts and feelings that you store, but that you don’t remember. It is storing everything for you, and it remembers everything. Cool, isn’t it?

This is super powerful for our trading! Even if you don’t realise just how much so right now.

In the recent trading lesson Do You Need to Transform Your Trading to Stay up to Date With the Rest of the Market? I talk about this and how we can harness our subconscious and use it to our full advantage.

When you jump from system to system, your subconscious never builds any memories that can reliably help you or send you signals.

Think of it like this. You see a nice bearish pin bar you are going to enter. “An exact same looking setup went for a massive winner last week” you begin to think to yourself! HOWEVER; you now start to get an odd doubt or weird feeling you can’t put your finger on. You don’t know why this doubt is creeping in, as it looks like a solid setup.

But, for some reason all the same, you pass on the trade and the setup fails. This is the subconscious at work. It sees something that you consciously don’t, and it alerts you. It has seen something previously that did not work out great and you need to choose whether to trust your gut or not.

If you move from system to system, your subconscious never builds anything like this or if it does it is mixed and confused.

You need to find a method, system or strategy that suits your style as a trader and that you feel comfortable with.

You will be able to then learn this method and strategy and 100% commit to it. Not just skim it, but really commit to it 100% because that is what is required if you want trading success.


4: Not taking your setups/trigger signals from the correct swing point highs or lows

These next couple of points that we are going to discuss are a little more technical, but all the same they are still huge mistakes I see traders making time and again, and something I have regular conversations with traders about.

This first one is absolutely critical – I cannot stress it highly enough. When I say a reversal trigger signal, I am referring to a price action setup like a Pin Bar or something similar.

Just a side note to that: I do not trade the inside bar as a reversal, but that does not mean you can’t or that it is wrong, I just don’t do it myself.

The “Pin Bar Reversal” or the “2 Bar Reversal” etc are just that: they are “Reversals” and as such as they need to be traded as reversals. That means that they need to be traded from the correct swing high and swing low points.

A big mistake that price action traders often make with these reversal triggers is entering them as continuations. The major problem with not entering reversal trades from the correct swing points (i.e. swing high or swing low) and not entering as a reversal is that we will be nearly always be entering straight back into an important area of support or resistance where price has just made a move out of.

Finding good entry spots is not hard once you know how and once you understand a few key rules, but before then, it can seam like a maze with no way out.

If we don’t enter from value areas we can find our stop being picked off time and again and quickly. This is something that comes up often.

Quotes from recent FSO surveys;

The best Forex entries

Forex trade entries


The chart below shows an example of exactly this in action. We have a bearish pin bar, but it is down at a swing low, when we want to be entering our bearish pin bars up at swing highs when they are up and away sticking right through a resistance level and away from all other price.

This pin bar is down at the incorrect swing low.

TAKE NOTE: I want you to pay attention to how if price was to break the pin bar it would move straight into the swing low support level.

This is the major problem with making trades from wrong swing points. We are entering straight into a recent support or resistance area.


Major resistance trading error


The chart below shows a really great example of what you should be doing and where you are far better off hunting your reversal trade setups.


High probability 2 bar reversal


Whilst this is in a range (the market more often than not is range trading, and we need to learn how to make trades in a range) this pin bar is up at a swing high, it is sticking out and away from all other price and take note of just how OBVIOUS it is out there by itself.

It is not hiding away from price. It is right up at the swing high.

Because of that it has room to move back lower into and that creates space and potential profit for you to make.

You can also check out the most recent Daily Charts in Focus Post. In this post I discuss in more depth how to hunt from a price action kill zone showing you a live example of value and a Pin bar that had just recently formed on the EURPLN as an example of a Pin Bar from the sort of area we are looking to use.

That pin bar is below and you can read the most recent post at AUDNZD Kill Zone.


kill zone



I have created a super in-depth lesson bonus that I know you are going to get a heap out of. As I discussed already and also continue to discuss in both P1  /  P2, a lot of traders come to trading with massive amounts of ability and huge goals, however; they quickly lose focus.

I have created a “Napkin Empire Trading Blueprint” for you to clearly define your path and how it is you are going to get to where you want to go as well as the exact strategies you are going to use. Just click the link below to access your free copy of your bonus;


Free Napkin Forex bonus


Lastly, make sure to keep an eye out next Thursday for PART 2 of this lesson and the last 3 super important mistakes that traders continue to make that are hurting their accounts.

Until then safe trading,



What Forex trading mistakes are you making that stop you from becoming consistently profitable? I would really like to hear what you struggle with, or what has been you major challenge so far or what you have managed to overcome!

Are You Making Any of these 7 Very Common Forex Trading Mistakes? | Part 1 was last modified: March 22nd, 2017 by Johnathon Fox
About Johnathon Fox

Johnathon Fox is a professional Forex and Futures trader who also acts as a mentor and coach to thousands of aspiring traders from countries right around the world. Johnathon specialises in helping traders reach their full trading potential by helping them master the art of price action trading and correct money management techniques. To learn more about how you can become a student of Johnathon’s and learn the strategies he uses, then check out the Forex School Online Lifetime Membership