A very common pitfall for people looking for Forex signals is they fall for the hype of an inexperienced trader. Just because a trading system is labeled “100% win” or has outrageous returns, does not mean the system is infallible. Getting this right is essential because it could cost you a lot of money and time.
Diving in during a winning streak, only to lose money when the hype is over and the inevitable losses occur, is a common mistake people new to Forex trading make. Never take the trader’s word for it. Always analyze the trading system before trading any of your hard earned money.
Many people new or to Forex trade with one or many demo accounts first before trading real money, to get a feel for the trading system. To avoid the bad effects of this particular error, you will want to look at the trading system as a whole, including losses and equity draw downs. Loses are the biggest problem when it comes to Forex trading. Think about how successful you would be if you never lost a single trade. When you think about it, mitigating losing trades is the only way to be successful in Forex trading.