Do you know what are the most common mistakes in trading? Read this post to find what are the common trading mistakes and how to avoid them.
1) Trading 24/7
The number one mistake traders make is that they open a large number of trades spending their entire day on trading platform. The market does not always provide an opportunity for productive trading likewise the amount of traits as a rule does not guarantee their quality. How to work around this make pauses trade according to a schedule. Take days off and take vacations after all trading is a real job that requires rest and recharging.
2) Going All In
When you decide that it’s time to open a trade for your entire deposit, always remember that ninety percent of such cases will end in failure. The best thing to do is follow rules of money management, for example; don’t invest more than five percent of your deposit when you are opening trades. There is no point in trying this out on yourself when millions of traders have already proven this to be an unsuccessful approach
3) Random Aimless Trading
Everybody wants to earn a little more a little faster and at all times let’s open trades on currency pairs stocks and commodities. No matter what the chart says, you’ll get lucky somewhere and also it’s a proven fact that in most cases you won’t get lucky. How to overcome this problem is by maintaining trading disciplines and have a clear plan when working with different market sectors. Study the specifics of their chart behavior, understand the patterns and drivers that affect the price and choose an effective trading strategy for the selected assets.
4) Fear of Failure and Losing Money
When faced with failures and losses, many traders experience a lot of stress. This emotional background leads to the desire to fight back to prove to yourself that you are not a loser. As a result a trader starts to disregard trading discipline make impulsive decisions which leads to losses stress and depression. Remember losses are a part of a trader’s work and after all we’re all humans and it is natural for people to make mistakes and experience losses and that’s what they’re here for. We must learn from mistakes and draw conclusions from failures.
5) Reluctance to Learn
Often traders complain that the market isn’t working for them and they don’t understand what they’re doing wrong as a result they lose money. They give up and think they’ve been cheated for some reason. They ignore professional training and think that trading is an easy way to make money but the market is a complex organism that lives by its own laws and rules and trading is hard work to understand the market. You need to spend hours patiently following the movements on the chart, observe patterns, record insights and gain hands-on experience because without this you cannot mature as a traitor or as a person.
And The Biggest Mistake of All..
- Fear of Stepping Out of Your Comfort Zone
Many traders spend hundreds of hours on a demo account but can’t make up their mind to take the next step make a deposit and trade on a real account but only a real account will unlock your potential and help you earn real profit you don’t have to trade right away first spend some time and observe the chart note to yourself where you would open a trade what trade duration you would select and for what amount in just a few weeks of regular observation you’ll notice that the fear of trading on a real account is no longer there because you opened hundreds of successful trades in your head dear traders avoid these mistakes and trade confidently with a limb trade