Trader Education
12 min read

Top 10 Mistakes SA Forex Traders Make (And How to Fix Them)

Most traders lose money not because they lack intelligence, but because they repeat the same mistakes. Here's what you need to stop doing right now.

TradeJournal Education

Updated November 2025

South African forex trader analyzing charts and learning from mistakes

Let me be straight with you. I've seen traders blow through R50,000 in less than a month. Not because they were stupid. Not because forex is a scam. But because they kept making the same mistakes over and over again.

The truth hurts, but it's better than losing your money. According to recent data from South African brokers, roughly 71% of retail traders lose money. That's not a coincidence. It's a pattern. And that pattern comes down to a handful of critical mistakes that keep showing up in losing accounts.

Here's what nobody tells you when you start trading: the market doesn't care about your feelings. It doesn't care if you need to make rent this month. It doesn't care if your cousin made R10k last week. The only thing that matters is whether you're making smart decisions or emotional ones.

This guide breaks down the 10 most expensive mistakes South African traders make, why they happen, and exactly how to fix them. I'm also giving you free tools you can use today to start trading smarter. No fluff. No motivational nonsense. Just real advice that works.

R

The numbers don't lie. But you can change yours.

71%

of retail traders lose money

R50k

average loss in first month

10

mistakes you can avoid today

1

Trading Without a Plan (Just Hoping for the Best)

You wouldn't build a house without blueprints. You wouldn't start a business without a plan. So why would you risk your money without a trading strategy?

Most new traders open their first position based on gut feeling. They saw USD/ZAR moving on the charts, heard someone on Twitter say it's going up, and boom, they're in. No plan for where to exit. No idea what they'll do if the trade goes wrong. Just blind hope.

Here's what happens next: the trade goes against them by 50 pips. They panic. They hold. They convince themselves it'll turn around. It doesn't. They lose more money than they planned to risk because they never had a plan in the first place.

How to Fix This:

Before you open any trade, answer these questions:

  • • Why am I entering this trade? (What's my signal?)
  • • Where will I exit if I'm right? (Take profit level)
  • • Where will I exit if I'm wrong? (Stop loss level)
  • • How much am I risking? (Max 1-2% of account)
  • • What's my risk-to-reward ratio? (Minimum 1:2)

Write this down before every single trade. Make it a rule you can't break. Your future self will thank you.

Free Tool: Working Position Size Calculator

Use this calculator to work out exactly how much to risk on each trade based on your account size and stop loss distance.

Position Size

0.0000 lots

(0 units)

Amount at Risk

ZAR 0.00

1% of ZAR 10,000

Risk Management Tip: Professional traders risk 1-2% per trade maximum. This calculator uses the formula: Position Size = (Account Balance × Risk %) ÷ (Stop Loss Pips × Pip Value per 10k units) × 10,000

IMPORTANT DISCLAIMER - READ CAREFULLY

This calculator is provided for EDUCATIONAL PURPOSES ONLY. Do not rely solely on this tool for your trading decisions. We accept NO RESPONSIBILITY OR LIABILITY for any trading losses, damages, or consequences resulting from the use of this calculator.

You must perform your own calculations and risk management analysis. Pip values fluctuate with exchange rates, and broker specifications vary. Always verify calculations independently and consult your broker's contract specifications.

Forex trading carries substantial risk of loss. Never trade with money you cannot afford to lose. Past performance does not guarantee future results. This tool does not constitute financial advice.

By using this calculator, you acknowledge: (1) You understand the risks of forex trading, (2) You will verify all calculations independently, (3) You accept full responsibility for your trading decisions, and (4) TradeJournal.co.za is not liable for any losses incurred.

Formula: Position Size = (Account Balance × Risk %) ÷ (Stop Loss in Pips × Pip Value)

2

Using Way Too Much Leverage (The Silent Account Killer)

Leverage is not free money. It's borrowed money. And it can wipe you out faster than you can blink.

South African brokers offer leverage up to 1:500. That means with R1,000, you can control R500,000 worth of currency. Sounds amazing, right? Wrong. Because while your potential profits are multiplied, your losses are too.

I've watched traders open a single position using 1:400 leverage and get margin called within hours. One bad trade at high leverage can destroy months of work. The market moves 100 pips against you, and suddenly your R10,000 account is at R2,000. Or worse, zero.

Real Example:

Trader A has R5,000. Uses 1:200 leverage. Opens full position on EUR/USD. Market drops 80 pips. Account balance: R0. Game over.

Trader B has R5,000. Uses 1:20 leverage. Opens smaller position. Market drops 80 pips. Loss: R400. Still in the game.

Smart Leverage Rules:

  • • Beginners: Use 1:10 to 1:30 maximum
  • • Experienced traders: 1:50 is plenty
  • • Never use leverage above 1:100 unless you're a professional
  • • Remember: Lower leverage = longer survival in the market
3

Trading With Emotions (Fear, Greed, Revenge)

Your emotions are not your friend in forex. They're your biggest enemy.

You take a loss. You're frustrated. You want your money back NOW. So you double your position size on the next trade. You're not thinking straight. You're trading angry. That's called revenge trading, and it's one of the fastest ways to destroy your account.

Or maybe you're winning. You made R3,000 this week. You feel invincible. So you start taking bigger risks, ignoring your rules, trading more often. That's greed. And greed always comes before the fall.

Then there's fear. You're in a winning trade, up R500. But you're scared it'll reverse, so you close early. You made R500 when you should've made R1,500. Fear steals your profits just as much as greed steals your capital.

How to Control Your Emotions:

  • • Set a maximum daily loss limit. Hit it? Stop trading for the day.
  • • Take breaks after every trade, win or lose (at least 15 minutes)
  • • Never increase position size after a loss
  • • Write down how you feel before opening a trade. If you're angry, stressed, or euphoric, don't trade.
  • • Keep a trading journal to track emotional patterns (more on this later)

Free Tool: Emotion Tracker Template

Before each trade, rate your emotions from 1-10:

Confidence: ___ / 10

Fear: ___ / 10

Greed: ___ / 10

Anger: ___ / 10

If any emotion is above 7, walk away. Come back when you're calm.

4

Not Using Stop Losses (Or Moving Them When Losing)

If you don't use stop losses, you're gambling, not trading.

A stop loss is your safety net. It's the point where you admit you were wrong and get out before the damage gets worse. But too many traders either don't set them, or worse, they move them further away when the trade starts losing.

Here's what happens: You set a stop loss at 50 pips. The market hits 45 pips against you. You think, "it's about to turn around, let me move my stop to 80 pips." It doesn't turn around. You lose even more money than you planned. That's not trading. That's hoping and praying.

The Cold Truth:

Every single winning trader uses stop losses. Every single one. If you want to join the 29% who make money, you need to protect your capital first.

Stop Loss Rules That Work:

  • • Set your stop loss BEFORE you enter the trade, not after
  • • Never move your stop loss further away from your entry
  • • Only move your stop loss toward profit (trailing stop)
  • • Base stop loss on technical levels, not random numbers
  • • Accept that losses are part of trading. One loss won't kill you. Refusing to take losses will.
5

Skipping Education and Going Straight to Live Trading

Would you perform surgery after watching a YouTube video? Then why trade forex after reading one article?

Too many South African traders open a live account on day one. They deposit R5,000, watch a few TikTok videos about "how I made R50k in a week," and think they're ready. They're not.

Forex is a skill. Like any skill, it takes time to learn. You need to understand how the market works, what moves prices, how to read charts, and most importantly, how to manage risk. You can't learn that in a weekend.

The Right Way to Learn:

  • • Start with a demo account (practice with fake money for 1-3 months)
  • • Learn the basics: pips, spreads, leverage, margin, currency pairs
  • • Study technical analysis: support/resistance, trendlines, indicators
  • • Understand fundamental analysis: interest rates, GDP, inflation data
  • • Read books by real traders (not Instagram gurus)
  • • Only open a live account when you're profitable on demo for at least 2 months

Free Learning Resources:

  • • BabyPips School of Pipsology (free complete course)
  • • South African Reserve Bank economic data (for fundamental analysis)
  • • TradingView (free charting platform)
  • • Forex Factory economic calendar (track major news events)
6

Choosing Unregulated Brokers (Getting Scammed)

Not all brokers are created equal. Some will steal your money and disappear.

South Africa has a problem with unregulated forex brokers. They promise high returns, low spreads, and "guaranteed profits." They run ads on Facebook and WhatsApp. They look professional. But they're not.

When you try to withdraw your money, suddenly there are problems. "Technical issues." "Account under review." "Minimum withdrawal not met." Eventually, they ghost you. Your money is gone. I've heard this story too many times.

Warning Signs of Scam Brokers:

  • • Not regulated by FSCA (Financial Sector Conduct Authority)
  • • Promises of guaranteed profits or "no risk" trading
  • • Pressure to deposit more money quickly
  • • No physical office address in South Africa
  • • Can't find them on the FSCA register
  • • Withdrawal "issues" reported by other traders online

How to Choose a Safe Broker:

  • • Only use FSCA-regulated brokers (check the official FSCA website)
  • • Read reviews on independent sites (not broker websites)
  • • Start with a small deposit to test withdrawals
  • • Avoid brokers that contact you first via social media
  • • Look for brokers with segregated client accounts

Recommended South African regulated brokers: Check the FSCA register at fsca.co.za before depositing money anywhere.

7

Overtrading (Taking Too Many Positions)

More trades does not equal more profit. Usually, it means more losses.

There's this myth that professional traders are glued to their screens, making 20 trades a day. That's not true. The best traders are patient. They wait for high-probability setups. They don't trade just to trade.

When you overtrade, you're chasing the market. You're forcing trades that don't meet your criteria. You're paying spreads and commissions on every position. And most importantly, you're exhausting yourself mentally. Trading is emotionally draining. The more you trade, the more likely you are to make mistakes.

Quality Over Quantity:

  • • Set a maximum number of trades per day (3-5 for day traders)
  • • Wait for your setup. If it doesn't appear, don't trade.
  • • Remember: Not trading is also a position
  • • Track your win rate by number of trades. You'll see fewer trades = better results
  • • Take days off. The market will be there tomorrow.

Rule of Thumb:

If you're trading more than 5 times a day as a beginner, you're probably overtrading. Cut that in half and watch your results improve.

8

Not Keeping a Trading Journal (Flying Blind)

If you're not tracking your trades, you're not learning from them.

Ask any successful trader what their secret is, and they'll tell you the same thing: journaling. Every single trade. Win or lose. Why did you enter? What was your reasoning? How did you feel? What happened?

Without a journal, you're repeating the same mistakes without realizing it. You can't identify patterns. You can't see what's working and what's not. You're just gambling and hoping for the best.

With a journal, you become your own teacher. You start noticing things. "Every time I trade after 9pm, I lose." "My EUR/USD trades are more profitable than my USD/ZAR trades." "I win 70% of the time when I wait for confirmation, but only 40% when I rush in."

What to Track in Your Journal:

  • • Date and time of trade
  • • Currency pair
  • • Entry price, stop loss, take profit
  • • Position size and risk amount
  • • Why you entered (your setup/strategy)
  • • Screenshot of the chart at entry
  • • How you felt before the trade (emotion check)
  • • Exit price and profit/loss
  • • What you learned (what went right or wrong)

Free Tool: TradeJournal Template

You can use a simple spreadsheet or notebook. What matters is that you do it consistently after EVERY trade. No exceptions.

Get a free trading journal template from TradeJournal.co.za
9

Holding Losers Too Long, Closing Winners Too Early

This one kills more accounts than anything else. And it's completely backwards.

Here's what most traders do: They're in a losing trade, down R200. They hold. "It'll come back." It doesn't. They're down R500. Still holding. "Just needs to recover a little." Down R1,000. Finally they close, devastated.

Then they enter a winning trade. Up R200. They get nervous. "Let me take profit before it reverses." They close. The trade continues up and would've made R800. They left R600 on the table out of fear.

This is exactly backwards. You should be cutting your losses quickly and letting your winners run. Not the other way around.

Why This Happens:

It's psychology. Humans hate admitting they were wrong (so we hold losers). And we love the feeling of winning (so we take profits early). But successful trading requires you to do the opposite of what feels natural.

The Fix:

  • • Set your stop loss and take profit BEFORE entering. Stick to them.
  • • Use trailing stops to lock in profits while letting winners run
  • • Never close a winning trade early out of fear (unless technical setup breaks)
  • • Accept losses quickly. The faster you cut a loser, the more capital you save for the next opportunity
  • • Remember: You need to win bigger than you lose. That means holding winners.
10

Ignoring Economic News and Events

The market doesn't move in a vacuum. There's always a reason.

You're in a trade. Everything looks good. Then suddenly, the market explodes 200 pips in 5 minutes. Your stop loss gets hit. You're confused. What happened? You check the news. The US Federal Reserve just raised interest rates.

Major economic announcements move the forex market. Interest rate decisions. Employment data. GDP numbers. Inflation reports. If you're trading during these events without knowing about them, you're flying blind into a storm.

Stay Informed:

  • • Check the economic calendar BEFORE you trade each day
  • • Know when major news is coming out (especially US Fed, ECB, SARB announcements)
  • • Avoid trading 15 minutes before and after major news (unless you're specifically news trading)
  • • Understand what moves USD/ZAR specifically (commodity prices, interest rates, political news)
  • • Follow South African Reserve Bank statements on interest rates

Free Economic Calendars:

  • • Forex Factory (most popular, free)
  • • Investing.com economic calendar
  • • TradingEconomics (detailed data)
  • • South African Reserve Bank website (local data)

Set these as daily checks. 5 minutes looking at the calendar can save you from a blown account.

Your Action Plan (What to Do Right Now)

Reading this article is step one. But knowledge without action is useless. Here's exactly what you need to do today to start fixing these mistakes:

Step 1: If you're using an unregulated broker, STOP

Check the FSCA register. If your broker isn't there, withdraw your money and switch to a regulated broker. Don't lose everything to a scam.

Step 2: Lower your leverage immediately

If you're using more than 1:50, change it today. Your account will thank you.

Step 3: Start a trading journal

Open a Google Sheet or notebook. Track every trade from now on. No exceptions.

Step 4: Write your trading plan

Answer the five questions from Mistake #1. Print it out. Keep it next to your screen.

Step 5: Set your daily loss limit

Decide right now: "If I lose X amount in one day, I stop trading." Stick to it.

The Bottom Line

Forex trading in South Africa is not a lottery. It's not a get-rich-quick scheme. And it's definitely not easy. But it is possible to make money if you're willing to treat it like a real skill that needs to be learned and practiced.

The traders who win are the ones who protect their capital first, learn constantly, and stick to their rules no matter what. The ones who lose are the ones who repeat these 10 mistakes over and over, hoping for different results.

You've just learned what NOT to do. That knowledge alone puts you ahead of 70% of traders out there. Now it's up to you to actually apply it. Because knowing is not enough. You have to DO.

Will you be in the 29% who make it, or the 71% who don't? That decision starts today.

Quick Reference: Pre-Trade Checklist

Print this out. Check every box before opening a trade.

Have I checked the economic calendar today?

Do I have a clear reason for this trade?

Have I set my stop loss and take profit?

Am I risking only 1-2% of my account?

Is my risk-to-reward ratio at least 1:2?

Am I emotionally calm (not angry, greedy, or fearful)?

Have I already hit my daily loss limit?

Is my leverage appropriate for my experience level?

Am I trading with a regulated FSCA broker?

Will I journal this trade after closing it?

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