Some common mistakes of the novice traders
When people are in Forex, they make some common mistakes. When you have spent months in Forex, you may laugh at your mistakes. When you have begun your trading and you want to make money, it is not possible for you to know about the common mistakes that you can make in Forex. You will learn as you trade in Forex but what if you could know these mistakes before you place your trade-in Forex? You will save a lot of your money and you will know how to trade. Most of these common mistakes are petty mistakes and traders lost a small amount. When you are trading in Forex, every cent count. You should not ignore any mistakes and focus on the market learning.
Getting the access to the retail trading world doesn’t mean that you have secured your financial freedom. The professional Aussie traders often consider trading as the most elite class business in the world. So if you want to survive in such an elite profession then you need to avoid minor mistakes at any cost. But being new to this market, it’s very normal that you will make lots of mistakes. For this very reason, you should use the demo account for the first six months. Once you feel comfortable with your demo trading performance it’s time for you to test your performance with the real trading account.
They keep on making trades
If you are keeping on making trades, you are making common mistakes. Most traders overtrade their Forex account and trade randomly. You should know there is no random trading in Forex. You may be lucky and win some trades, but this is natural if you are placing many trades. This market is volatile and the more trade you place, you are increasing your chance to lose your money. You should not keep on trading on the market. If you cannot stop yourself from overtrading, you may use your demo accounts. It will save your money and investment.
The expert always looks for high-quality trading signals in their trading platform. When they do the market analysis they always give preference to the higher time frame data since it is one of the best ways to minimize the losing trades. At times you will have massive confusion about the trading signals but there is nothing to worry about it. If you don’t understand any price action signal then simply ignore it.
Easily believe the market trends
This is a hilarious mistake of all time. When traders first enter the market, they are overwhelmed by Forex trading. There is a chart and the price level is going up and down in the market. If you look for sometimes, you will see that the trend is always going up and down. At first, it may strike you as there are no trends. The prices will always go up and down like a natural cycle and you can make money whenever you place a trade. Eventually, the price will come to their favor and they will make money. Do not believe the market trends. You may believe your cat but the market trend cannot be believed. This trend will change when you place your trades. When we were beginner traders, we also became happy watching the trend going in our favor. The real drama begins after you have placed your trade. The trend is going down and down and more down and you are going to be ruined. Use the market analysis to know the market trend. It will take some time but you will get used to it.
You need to learn from your mistake. Maintain a trading journal so that you can spot down all the losing trades and make the necessary change to your trading system based on past trade result. Try to read lots of books and articles since it is one of the easiest ways to improve your trading performance.