Don't overtrade

After several profitable trades, inexperienced forex traders become overconfident. This leads to overtrading - opening and closing too many trades in a short time. Typically, overtrading brings about the interruption of a winning streak and the beginning of a series of losses. Euphoria may, in principle, be a nice emotion to experience, but it is not good in forex trading. Do your best to trade as unemotionally as possible.

Sure enough, overtrading can be the result of mere boredom. For example, you are sitting in front of the screen, looking at the chart of the currency pair of your liking. You see that trading is pretty much dead, there's hardly a 20-pip upward move followed by a 20-pip downward move. It's been like this for the last two or three hours, with no clear market direction whatsoever. Based on your strategy and your opinion about market sentiment, you should not place a trade under such circumstances. However, you haven't put in a trade in the last two days, and you simply can't stay put. So you decide to open a position, then you close it, and then open a new one, and so on and so forth. That's a big mistake! If you're bored, call a friend. If you don't know what to do and you are looking to kill time, go take a walk, but don't you ever trade just for the sake of trading.