Avoid becoming overconfident after a winning streak
Although forex traders tend to operate at their best in the forex market when they feel confident, overconfidence can arise in a person after a substantial set of winning trades. This state of mind can result in common trading pitfalls like overtrading and excessive risk taking. Unfortunately, such trading errors can be devastating for a forex account when the trader’s lucky streak finally reverses itself, as it virtually inevitably will. Rather than giving into overconfidence by taking on more risk, a prudent forex trader will instead use a winning streak as an opportunity to remove some of their lucky gains from their forex broker account.