Top mistakes traders make in their early days

Palaeophile

New member
In the beginning, some mistakes are very common during trading
  • Over trading
  • Try to ignore market analysis
  • Unrealistic expectations
  • Use of social media as to get information about forex trading
  • Dependency on forex signals
 

Asahi

Verified member
Traders must rely on learning because it helps ultimately. However, traders have resources but don’t have the mindset to utilize the available opportunity. Traders can read e-books, watch video tutorials and follow other things to develop their knowledge. However, they should go to every length to develop themselves.
 

Richee84

Active member
Business owners or entrepreneurs make a lots of mistake during the early phase of their business. Some of the common business mistakes made by business are highlights below
Not having a good business plan to follow; Business plan is one critical aspect that every business owners or entrepreneurs must take very serious and follow strictly for the buses to be successful. Business plan served as the manual for the business, it contain everything things that will make the business fully operational ad even till when the business eventually wind downir operation.
Another common mistake made by must busiest owner is the mistake of over trading. This usually happened when the business is make some form of profit and been carried away by the level of the profit they are make and don't know when to pull out of such trade.
Lack of Risk management is another mistake that can be too costly for business owners and cause their down fall. Every business owners or entrepreneurs must learn how to calculate and manage their risk. They should be able to know their level of tolerance for a particular risk and know the ones they can avoid.
Another business mistake is lack of proper or good mentor to guide one in the journey of entrepreneur with their acquired knowledge and skill
 

Polyglot

New member
Sad but true! Traders lose money because of so many mistakes they make. They are concerned about money and getting rich quickly only and nothing else. The forex market does not work that way. They trade without using any risk management strategy and lose big. Moreover, they show greed or indulge in revenge trading to recover their losses only to lose more. These things have no place in trading and therefore, must be avoided.
 

Ivo Zetticci

Verified member
Forex is a big space and earning knowledge over Forex trading isn’t as easy as thought. So, traders should grow their knowledge by reading e-books, video tutorials and considering other related aspects. Traders should take these issues under their considerations and refine their trading on a daily basis.
 

Phytology

New member
New traders are bound to make mistakes because they have no idea about the market and may not even be able to judge what they are doing. So, it’s okay for them to make mistakes and learn from them. The more they will learn, the better they will become.
 

LaneBall

New member
I think emotional trading is something that leads to newbie traders losing their money. A forex trader should be relying on facts, figures and logic rather than emotions and feelings. They must be rational and reasonable at all times. New traders often struggle with managing their emotions while trading and this is a major concern. Trading psychology is a concept that needs to be learned just like fundamental and technical concepts of trading.
 

Jack Reacher

Verified member
There are a lot of brokers that offer traders a nice environment of trading and traders should trade with such a broker with whom risk-management is easy. But it’s the area where traders make the prime mistake. They can’t feel how important a broker is.
 

Tubiform

New member
Some mistakes which I made in my early days are
  • Not keeping a trading journal
  • Using too many indicators
  • Getting emotional in trading
I would say keeping a trading journal is very important for a beginner to keep track of their trades and progress as a trader. One should only use 2 to 3 indicators to avoid confusion. They should try to eliminate emotions from trading and adopt a rational approach.
 

Jenet

New member
When you are new to the market, you tend to see only what seems pleasing to you. This often keeps you from seeing the market reality and keeps you from making the right moves.
 

Numiinous

New member
Thanks for sharing these tips! Newbies have to understand that they have to go through the process of learning and shaping themselves for trading. They do not do that. They skip it entirely.
Emotions are something newbies cannot control. They cannot control greed or fear. Sometimes they do overtrade too. Newbies need to know the market thoroughly before they start trading.
 

Jack Reacher

Verified member
For proper guidance, there are several means like keeping a mentor or following expert traders. Remember one thing that every mistake can lead to a big loss so traders should prepare them in such a ways that no mistake takes place. So recovering from mistakes gradually is the best way to improve thyself.
 

Henpeck

New member
Every trader starts their journey with no prior experience of wins and losses and a lot of hope of making money. But the ones who keep thinking about profits and don’t really try to put an effort to understand the trading market often end up making mistakes that cost them money. And if they still don’t understand the seriousness of the market, they end up failing.
 

Suba

Moderator
Staff member
If we take a serious observation then we will find many mistakes of forex traders in the early days of their trading such as, Many of the forex traders do not study strategy seriously before starting to trade, choose the wrong broker or fake broker, trade without a plan, using excessive or wrong leverage, Forex traders also often trade sentiment (psychology), they also don't use stop losses, Also they use too many strategies etc.
 

Chlamys

Member
There are a lot of mistakes that new traders make and I think that’s completely fine as long as they are not trading out of greed. It goes without saying that you make better trading decisions when you know that you have to protect your money and not just make profits. Mistakes may teach you what not to do.
 

Neuroid

New member
Some common mistakes beginners make in Forex trading are -
  1. Unrealistic return expectation - Many beginners start trading currencies with the goal of becoming rich very quickly, which often pushes them into making mistakes.
  2. Trading without education and demo experience - Learn the basics first, and forget about being successful with get-rich-quick schemes.
  3. Over-driven by emotions - Controlling your emotions is one of the most important things to do in Forex trading. Don't get influenced by greed, revenge.
  4. Trading without money and Risk Management - Most beginner Forex traders forget to use a stop-loss order, which is an automatic order that says to your broker to close your positions after it reaches a certain level of loss.
 

Ramolak19

Verified member
You have made a lot of point and most of the Traders only work on the attribute of self-interest when it comes to business transaction that's some of them are selling expired products while others are trying to reduced the measurement just because they willing to make more profit at all cost.
And secondly, most traders are commonly mistake in ability to retain customers. Although this is generally while some traders are find it difficult in there earlier transaction to retain the most customers because they lack required skills. And it is advisable for them to do proper check balance every time to Nowhere there is lapses in their business
 

Satanology

New member
I think many beginners confuse greed with interest when it comes to making money. Greed can make one miserable and not profitable. A trader needs to avoid greed while trading. Other than that, a trader must avoid fear, FOMO, anxiety, etc. Being a trader is not possible until one learns how to trade and practice on a demo account.
 

Scrutinize

New member
What may seem as mistakes to new traders are usually some unlearnt lessons that help in framing careers of traders. This is a crucial time that not many traders are able to go through easily. You can call it a test of your patience but you won’t do well at trading until you are capable of learning from all that comes across.
 

Wavemeter

New member
The OP has stated some good points. Here are a few more points I’d like to mention -
  • Not learning and ignoring trading psychology
  • Overtrading
  • Not making a trading plan
  • Not using money management.
  • Not analysing the market properly.
 
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