Not only in trading but in anything you do, you will make mistakes. If you are making mistakes, it is okay because mistakes are obvious in trading. Even the traders in the Hong Kong have made mistakes. Of course, they might be successful traders, but mistakes are inevitable in your journey. They would have corrected the mistakes while they gained experience, but that doesn’t mean they never made mistakes.
Just like that, you are going to make mistakes because they are inevitable. But you shouldn’t let the mistakes remain throughout the trading journey. Also, you shouldn’t avoid learning from the mistakes if you get a chance. We are about to discuss some of the mistakes so that you will be aware of these mistakes. When trading, you shouldn’t make the mistakes that you learned about. These mistakes are common, which is why you should stay away from these mistakes.
Trying to remain in many trades at a time
This is similar to overtrading. Why do traders overtrade? What is the reason? It is simply out of greed. Commonly, traders become greedy once they enter into Forex trading. If you are in the Forex market, you should not let this happen to you as well. Unfortunately, most beginners make this mistake because they aim to make more money in a short time.
Another common thing is trading too many trades at a time. This is also seen among traders who are greedy make more money. If you see that you are trading too many trades at a time, you should change this habit because this will ruin your trading journey. Sometimes, you might even lose the entire trading account even before you know it. Let alone all these details, think of the logic behind trading too many trades, what are you trying to achieve? Even if you trade one trade you should do it perfectly and for that, you must focus on one trade at a time. You should wave goodbye to the temptation to do more if you want to welcome profits.
Ignoring the high impact news
The rookie traders always think they can make huge money by trading the high impact news. News trading is one of the most difficult tasks in the trading profession. Unless you have access to a robust trading platform, it will be nearly impossible to trade the volatile market. Feel free to visit https://www.home.saxo/en-hk to learn more about the professional trading environment. Make sure you analyze the high impact news before you execute any trade. Develop this habit and it will protect your trading capital.
Staring at the charts and daydreaming about trading
This is another dangerous mistake that most beginners would do and if you are in this phase, you must get out of it. Just like the above mistake, this is about daydreaming about trading and staring at the chart. What are you going to get by looking at the chart? What are you going to achieve by just thinking of the way you would trade? These things will be useless if you think it through. Hence, try to stop yourself from these mistakes. Of course, you have to analyze the charts and watch the market movements, but just staring at the chart is not the right move.
Not valuing the real money
If you value real money, you won’t invest it directly into a live account. You will use the demo account to check how you can do it. You will practice on the demo account before you use the live account. But most beginners directly use the live account and lose their hard-earned money unnecessarily; hence, you should be careful about this.
You will learn from your mistakes, and it is something good. But the common mistakes we have mentioned are quite dangerous. Hence you must stay away from those mistakes as much as possible. You will succeed only if you have patience and dedication.