Whether you’ve been trading for several months or several years, it’s essential to be reminded of the top trader mistakes – and how to avoid them. Like with lots of things, bad habits can develop quickly. Our highly experienced team at Alpari International works hard to steer you in the right direction and provide the support you need.
𝟏. 𝐋𝐚𝐜𝐤 𝐨𝐟 𝐩𝐥𝐚𝐧𝐧𝐢𝐧𝐠 🗓
The longer you have been trading, the more likely you are to have a well-defined plan. Knowing your exact entry and exit points, the amount of capital to invest and the maximum loss you’re willing to take is crucial. Straying from a strategy or not planning in the first place can risk poor decision-making and therefore bigger losses.
𝟐. 𝐔𝐧𝐫𝐞𝐚𝐥𝐢𝐬𝐭𝐢𝐜 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧𝐬 🧐🤯😵
Traders often impose their own expectations and predictions on the market. While we need to make a judgement to place a trade, there is no guaranteed method for isolating each move and profiting. And believing so will result in frustration and errors in judgment.
𝟑. 𝐈𝐠𝐧𝐨𝐫𝐢𝐧𝐠 𝐭𝐡𝐞 𝐫𝐢𝐬𝐤𝐬 🚦🤚
Your risk tolerance is crucial to determine before making a trade. Some investors are able to manage volatility in the markets whereas others may require a more secure, regular income. If the trade offers very attractive returns, consider its risk profile and how much you could lose if things go wrong. Never invest more than you can afford.
𝟒. 𝐆𝐞𝐭𝐭𝐢𝐧𝐠 𝐜𝐚𝐫𝐫𝐢𝐞𝐝 𝐚𝐰𝐚𝐲 𝐰𝐢𝐭𝐡 𝐥𝐞𝐯𝐞𝐫𝐚𝐠𝐞 🕵️📉
While leverage can boost returns for profitable trades, it can exacerbate losses on losing trades: a truly double-edged sword. Learning how to manage leverage comes with a deeper understanding of the market and more advanced tried-and-tested strategies.
𝟓. 𝐍𝐨𝐭 𝐚𝐜𝐜𝐞𝐩𝐭𝐢𝐧𝐠 𝐨𝐫 𝐦𝐚𝐧𝐚𝐠𝐢𝐧𝐠 𝐥𝐨𝐬𝐬𝐞𝐬 😰
Successful investors are able to move on quickly if a trade is not working out, and take action to cap a loss. It’s an easy mistake to start panicking over a loss and hold on to a losing position in the hope that the trade will eventually work out. However, a losing trade can tie up capital for a long period of time and result in mounting losses.
If you want to practise your trading strategies without taking any risks, open a demo account with Alpari International today.
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STOPTo support your work, I also upvoted your post!
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You're welcome @fiicjames
The entire Steemiboard team wishes you all the best for 2020! Have a Happy New Year ✨🥂✨
Hey @fiicjames,
@upvoteshares is currently having a promo for members of the upvotebuilders project that closed down recently wich might help to recover some of the lost upvotes.
This project has been running steady and over 20 months without having to make all that much promotion as it offers Steemians like you who bring consistent quality content solid returns far above the 10x self-upvote values and also includes tribe upvotes for SPORTS / PAL / LEO.
There are still some shares left in Level 20 (Value always goes up each Level) so feel free to check it out and let me know if you are interested or have questions. Also feel free to ask any of the ~100 already existing members their experience with the program.
Keep up the great stuff !