Forex Traders’ Mistakes

Mistakes are an indispensable attribute of the life of any active person who is not sitting still, but is engaged in some kind of activity. The trader is not immune from “blunders”. The mistakes of traders are commonplace at the initial stage of the development of a future professional. But despite this, the pros are also mistaken, who have been on the market for more than one year, or even a dozen years.

For the most part, a mistake on Forex is a mistake in observing some fundamental or tactical rules. If the novice trader did not bother to learn the basics of the activity, or does not use any strategy, then almost every step will be wrong.

Let us see what are the main mistakes in stock trading from time to time are made by various categories of market participants. At the same time, we emphasize that errors are arranged in a random order and there is no rating here. Each of the problems listed below can occur both frequently and rarely, depending on the particular trader.

Mistake number 1 The lack of a personal list of rules that will be the basis for your successful career novice in trading

Drawing up such a “written” list allows the trader to fix several dozen basic requirements for himself. At the same time, he will regularly repeat them and memorize them, in order to continue to perform them “at the level of the reflex”.

At the same time, the rules are best formed with the help of more experienced colleagues who share their experience on various forex portals.

If you do not engage in such work, then almost any decision on the market will be fraught with great risks and chances for error.

Mistake number 2. Careless attitude to the psychological basis of trading activities.

Forex trading is a job that is very closely linked to psychological aspects. Most professionals believe that it is professional knowledge of psychology that is the key factor for successful trading. It is the beliefs of Forex players that create the indicators that further shape the market itself.

Mistake number 3 Attitude to forex trading, as an easy hobby or hobby

Each newcomer must understand for himself that trading is a complex, labor-intensive, but profitable activity. A hobby is something in which you can allow yourself to be relaxed and inattentive. Trading is a business that requires constant improvement of oneself and full commitment. Otherwise, success is extremely difficult.

Mistake number 4 Lack of clearly defined goals and installations

One of the most common mistakes novice traders. Every novice trader must once and for all remember that a clearly set goal is already a huge part of the process of achieving success. Only he who sets himself the goal, ultimately, achieves it and is constantly looking for ways to implement it through models, strategies and rules. Others are marking time.

Mistake number 5 Lack of understanding of various market conditions

For the forex market is characterized by several basic states. On it can be observed upward and downward trends, flat, high or low asset volatility. Often, beginners create a strategy for themselves that works great when one of the phases is visible on the market. At the same time, they do not think that their methods will not work if the state of the market changes dramatically.

Mistake number 6 Ignoring the work on their mistakes

No matter how well a trader feels on the market, mistakes will occur with some degree of periodicity. If you do not conduct an ongoing analysis of your work, the likelihood of repeating wrong decisions will increase significantly. Of course, it is better to learn from the mistakes of others. But your mistakes will improve your trading even more effectively because of personal losses, which are the result of specific factual errors.

Mistake number 7 Ignoring their own psychological state

Any trader is, first of all, a person. Emotions and feelings are not alien to each of us. Therefore, the trader needs to be able to recognize the emergence of these feelings and learn the methods of eliminating their influence on his professional activities. Those who trade under the influence of feelings and emotions can at best only achieve short-term success, but will always be in the long run in the red. Forex trading is an analysis, not an emotional lottery. This needs to be understood.

Error number 8 Ignoring the rules of monetary management

If you delve into the experience of many thousands of traders, you can understand how often they lost all their capital, playing for everything they have. Therefore, successful market participants set limits on the amount of transactions for themselves (regardless of confidence in the chances of their success), so as not to be afraid of losing too much at a time.

Mistake number 9 Lack of understanding that trading on Forex is a statistical process.

Each trader is obliged to understand for himself that all transactions in this profitable market must be calculated by means of the theory of probability. Thus, he will achieve the highest possible probability for his own success, and in the long run he will achieve his financial goals. Even despite the possibility of periodic failures.

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