List of the most common mistakes that you can use to avoid loss all you capital in your trading first operation. Many trader enter in the market with high profits expectation and big ideas but, soon they find out that making money consistently is not as easy as they expected, said that I wanna talk about the biggest and common mistakes trader often make.
Mistake #1
To little information about the market and the assets they are trading on
Underestimate what it take to be a profitable and successful trader is a common mistake, trying to trade without really knowing how the market works generating huge losses long term. The best trader out there are willing to do whatever it takes to becoming success that means studying chance or learning new trading methods in order to predict as much as possible for what the market may throw in they way
Mistake #2
Be too emotional
Many trader get so emotionally involved in their trades whether it is are long or short, that if the trade goes against them and their are wrong about their positions they react badly and failed to keep their emotions in check. It may sound easier said than done but try to remain objectives at all times. As you’ll find, it will make you more intelligent when you’re making trading decisions, and it will also help u avoid making emotional trades.
Mistake #3
Lack of recordkeeping
it is strongly recommended to keep a trading diary, for example every time you enter a trade, print out the chart and write down why you entered whether it was fundamental, technical or a tip. keeping a diary will help you to analyze each trade and even if you are losing money. Little by little you’ll notice that you will be learning from your mistakes, what will help you to become a better trader. Money management and recordkeeping are just as a important as technical analysis
Mistake #4
Expecting easy profits
A lot of traders enter the market is seeming they will be successful while others particularly new traders put together unrealistic calculation of how much profit they will make on the onset, now anticipating how much you will make an advance can be very dangerous. Instead it will be wise enter the market with a neutral attitude.
Mistake #5
Blindly following systems
Most trader use online trading platforms like metatrader4 that provide charting research and backtesting tools to help them refine their strategies. That’s fine, but don’t rely too heavily on theses tools without a full understanding of their capabilities. This tools is meant to assist you not to think for you, so if you are blindly following mechanical systems to buy and sell it’s likely that you are not actually 100 percent sure of what are you doing, so it is important that you understand the concepts and the reason behind what the charts are telling you. This will allow to see the bigger picture and also avoid unnecessary mistakes.
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