Top mistakes traders make in their early days

[Austinaldo]

Trading the financial market is a very complex task to do but it is very lucrative at the same time when we know how to navigate the waters. Trading can be a life changing adventure as well as a life wrecking one. It just depends on how experienced we are and the steps we take to avoid making huge trading mistakes. Below are some of the mistakes to avoid as a newbie in the financial market:

1. Risk management: You must be willing to learn how to properly manage risk. Know when to trade, how to size your trade and how much leverage to use at a given time. Every trade doesn't necessarily have to go in your favour. Sometimes you just have to cut your losses and move to the next one.

2. Technical analysis: You must master the art of drawing charts and doing so really well. Without this it is difficult to know when to enter the market or how to navigate your way through every day noise in the financial market.

3. Do not ignore fundamentals: Every trader has to keep an eye on the news. In fact, news are highly capable of influencing the market so never ignore them.

4. Do not move into a trade immediately after a loss: Newbies tend to start chasing their loses when one trade doesn't go in their favour. No! Don't be emotional. Losing is also part of the game. Make sure you clear your mind off things that gets you emotional before entering a new trade.

Feel free to leave me your thoughts below

 

[Ithedicious]

Thanks for sharing. I still have a lot of things to learn concerning forex because I don't really have much understanding of forex and how it work, but only what I understand is that Forex only deal with trading of a country's currency using the difference in their price movement and high volatility to make profit.

Even when before I was introduced into some online earning opportunities I was always being advised that before I can engage in trading of volatile market that I must have a perfect understanding of technical and fundamental analysis as it is what will really help me to understand and at least predict the volatile market to a certain degree of accuracy.

I don't really have much idea about technical analysis but its something I have to learn if I am really interested to engage in forex as a longtime purpose online business .

I know so many people are losing their money in the forex market and as a result of this proper risk management is needed for a person to be successful in trading and we should also know the amount of money we are willing to risk at a particular period of time .

 

[Mary Frederick]

The Greed, I see almost all of the new traders seeking here tons of money in their early stage of trading! They try to make quick money here! As a result, more than 98% Forex traders are struggling here since they opened their live account without enough preparations!

 

[Shaf]

Like many other traders, I only took learning seriously after I lost heavily. When this happens, you will realize that even though there really is money to be made on the markets, you have to be wise to be the one gaining and not loosing.

One important thing is learning the fundamentals. If one can understand this, especially price action, it will help you to a kid losses even if you don't make a lot of gains. This will help you to know how market movers and other traders will think, where they will be taking profits, going short or long and many more.

I used to ignore risk management but it should be the first thing that a new comer should learn. Without this, it's just as useless as gambling with one's life savings.


Another point is to control emotions
I think this is the most difficult and time consuming thing to learn. You can spend years trading and all of a sudden, make a bad decision die to emotions and thus get liquidated.

 

[glabella]

Many new traders fail to make their trading plan. And without an efficient trading plan they fail to determine entry and exit points and risks to be taken. This eventually leads to losing.

 

[waldgrave]

Trading the financial market is a very complex task to do but it is very lucrative at the same time when we know how to navigate the waters. Trading can be a life changing adventure as well as a life wrecking one. It just depends on how experienced we are and the steps we take to avoid making huge trading mistakes. Below are some of the mistakes to avoid as a newbie in the financial market:

1. Risk management: You must be willing to learn how to properly manage risk. Know when to trade, how to size your trade and how much leverage to use at a given time. Every trade doesn't necessarily have to go in your favour. Sometimes you just have to cut your losses and move to the next one.

2. Technical analysis: You must master the art of drawing charts and doing so really well. Without this it is difficult to know when to enter the market or how to navigate your way through every day noise in the financial market.

3. Do not ignore fundamentals: Every trader has to keep an eye on the news. In fact, news are highly capable of influencing the market so never ignore them.

4. Do not move into a trade immediately after a loss: Newbies tend to start chasing their loses when one trade doesn't go in their favour. No! Don't be emotional. Losing is also part of the game. Make sure you clear your mind off things that gets you emotional before entering a new trade.

Feel free to leave me your thoughts below

These are excellent tips, especially the fourth one. Instead of moving to the next trade, traders should analyse their previous trade and find out why it went wrong. It is part of growing as a trader and will help you strategize future trades in a better way.

 

[Eduard Hahn]

The most common mistake that traders make in their early days is not having a proper strategy. They rush to make profits and end up making bad decisions that lead to losses. Traders need to be patient and analyse the market carefully before making decisions.

 

[Trigonal]

Using too many indicators at a time is a big mistake that new traders often make. It’s best to use two indicators at a time. One will tell you the market direction and the other one will confirm the signal.

 

[Jack Reacher]

If you wanna progress your Forex trading, traders have to face several setbacks in trading. They should discover different ways to get rid of losses and bring advancement in knowledge. But they should not hasten to obtaining quick return. After all, they should select a supportive broker, like Eurotrader, for their assistance.

 

[Caballine]

Top mistakes traders make while trading forex is that they don’t learn about the market and start trading. Also, traders are not patient and they often over-trade or revenge-trade.

 

[pawelkolasa]

Many traders get queasy and are quite impatient when they enter the market. They often succumb to anything and everything that comes their way making it difficult to tread lightly. They’re mostly lost, don't follow a strict plan, have not heard about placing stop loss and so, they lose their money and end up demotivated. There is no shortcut to earning money in this market.

 

[Shaf]

There are many mistakes people make in trading, and though some may seem insignificant, those ones usually have the most devastating impact if things go wrong.

One such mistake is believing, and actually trading with a lot of money. The belief is that you can make higher profits, but the same applies if things go the other way.
This mistake is more popular amongst newbies and they usually have poor trading strategies or no strategy at all, thus compounding their loss whenever it occurs.

Another I've personally experienced is greed. This mistake is far more deadly than most we know of. Imagine making a profits of $1,000 and loosing it all, to loose even part of your capital. Once a trade is going favourably, we tend to want more of the profits, thinking that holding just a few more minutes or hours can even double it.

It's impossible though to time the top of a trend or it's bottom, so it's best to take profits or cut your losses as soon as possible.

 

[King bell]

When you first start trading, there are a lot of things to learn and it can be easy to make mistakes. Here are some of the top mistakes traders make in their early days:

1. Not having a trading plan: Without a trading plan, it is very easy to lose sight of your goals and take trades that are not in line with your overall strategy. A trading plan helps to keep you disciplined and focused on your goal.

2. Not managing risk: Risk management is one of the most important aspects of trading. Many new traders don't take it seriously enough and end up risking too much on each trade. This can lead to big losses if the trade doesn't go your way.

3. Over-trading: It is very easy to get caught up in the excitement of trading and start placing too many trades. This can lead to big losses if you are not careful. It is important to stick to your trading plan and only place trades that have a high probability of success.

4. Not taking enough profit: Many new traders are too quick to take their profits and get out of a trade. This can lead to leaving a lot of money on the table. It is important to let your trades run until you reach your profit target.

5. Not using stop losses: Stop losses are a tool that can help you limit your losses. Many traders don't use them or don't use them properly. This can lead to big losses if a trade goes against you.

6. Not managing your emotions: Emotions can have a big impact on your trading. Fear and greed are two emotions that can lead to bad trading decisions.

 

[Rookery]

Thanks for sharing these points. I see that most new traders start trading without learning or practising enough. And then they start losing. Of course, greed is one of the biggest drivers here. And they don’t realise it. These tips will help newbies stay on track.

 

[btaliat]

There is no doubt that many have lost their hard earned money when it comes to trading platforms of either forex or cryptocurrency. The reason is not that fetch, most do not have the necessary knowledge before they venture into the trading. They only want to make money and care less about the knowledge they need to ensure they don't lose money as they are planning to get money.

The first mistake is from the fact that they are too eager to make money. This makes many of them to reject the analysis that may be involved while trying to make this money. They only trade as if they are gamble. Many crypto traders are fond of this. Some buy coins because the price is going high with the aim that his as well will go high. There are some unconfirmed assumption that you should buy coins when it it is in a bearish market. This may not be so in many instances.

Greediness is the second mistake in the part of most traders. They invest heavily with the aim to cash out heavily. They always want to make big money. And when the market falls, they run into debt. The simple analogy is to invest what you are can part with..

 

[Diapason]

All of these mistakes are true to some extent. Traders find it lucrative to start but often forget the basics of the market and start trading without analyzing their mistakes.

 

[Misology]

Taking their education too lightly is what I feel is the most common among the forex beginners. This results in them opening unnecessary trading positions and going through unnecessary losses. If they move ahead step by step, they won’t have to face any such issues.

 

[Fartsdump]

It’s absolutely normal to make one or the other mistake when you are a forex trader because that’s how you learn the basic functions of the market and what you must do and what not. When you spend time in the forex market, you make yourself well-versed with different market conditions and how you can make money in different trading conditions.

 

[Ayuba Ernest]

When it comes to trading, there are a lot of things that can go wrong.

For new traders, it's especially important to be aware of the potential mistakes that can be made in order to avoid them.

Here are some of the top mistakes that traders make in their early days:

1. Not having a plan.

One of the most important things in trading is to have a plan. Without a plan, it's very easy to make decisions based on emotion, which can lead to poor results.

2. Not sticking to the plan.

Once you have a plan, it's important to stick to it. This can be difficult, especially when things are going against you and you're tempted to make emotionally-driven decisions. However, if you stick to your plan, you're more likely to be successful in the long run.

3. Not managing risk.

Risk management is crucial in trading. If you don't manage your risk properly, you could end up losing a lot of money.

4. Not diversifying.

Diversification is key in investing and trading. By diversifying, you're able to reduce your risk and potential for losses.

5. Overtrading.

Overtrading is a common mistake that new traders make. It's important to remember that you don't need to trade every day or every week. In fact, it's often best to trade less frequently so that you can avoid making mistakes.

By being aware of these mistakes, you can avoid them and give yourself a better chance at success in trading.

 

[Melanie Terrell]

Thanks for the tips! Trading without a plan is like trading to lose. Forex trading may seem an easy road to riches, but it is not. People forget what it takes to trade forex successfully, and they fail miserably. It is important to have the right trading strategy and remain calm in order to trade for a long term.