7 Common Trading Mistakes.
Trade Without Learning the Markets.
Most of the Traders enter directly into the profession of Trading without learning the basics and mechanism of markets.
In trading you have a full liberty to do whatever you want. Traders are risking there hard earned money to earn big amount of money.
But Many Traders do not understand the importance of learning and get into the trading business without educating themselves.
Initially when I started my career in Trading Business I also did not understand the importance of training due to which I was unsuccessful.
As I realized that training is the essential factor in trading I started to learn trading from professional traders.
Actually Noting is Concrete in Trading, But at least you can make your own views ,ideas and trading methods after learning from the experience of successful traders.
After learning the experience of successful traders you can set your own ideas about trading. You can develop your own strategy which suits you for trading.
Successful traders create there own trading methods and ideas about trading but initially you have to learn the experience of Successful traders.
If you are interested to learn my experience about trading then click Here.
To Much Attention on News
Many Traders are busy and pay full attention on news while trading. They used to watch TV and other devices continuously and trade according to the news.
Most of the times news affect market movements but it is not advisable to trade fully on the news and other devices.Since most of the times the trades moves in opposite direction of the news.
It is not necessary that your direction of the trade will follow the news. This is the again major reason foe failure in trading.
After all at the end of the market you will be able to see all the movements in price action charts what market has done. You will be able to see the price action clearly on charts that is what we need for the probability in trading.
Don’t Follow the Risk Management.
This is one of the most common trading mistakes which is frequently repeated by the traders. This is the biggest reason in failure in trading.
Traders already know that money management is very important while trading but still they repeat this mistake again and again and finally loose their all capital amount.
It seems very easy to understand risk management topic , but practically when you are trading it is very very difficult to follow this easy rule for traders.
Actually if you follow risk management rule very strictly, following the disciplines while trading, then you will be never unsuccessful in trading.
Run after the Markets or over trading.
This is the another common trading mistakes done by many traders.Most of the traders expect each trade to go in their direction. If any one of the trade is going negative and the stop loss is triggered then many traders show the revenge attitude.
This traders follow the market and run after the markets to recover the losses. Due to this attitude they over trade in the market and make double losses.
Again they over trade to recover the losses and again they make huge losses. This way they loose their entire capital in the trading account.
The best solution to this is that not to do over trading. Stop trading on that particular day when the stop loss is triggered. Just shut down your laptop and enjoy the movie and trade on another day as per your trading strategy.
Taking Extreme Risk Per Trade.
Many traders are trading in full of emotions. They have less money in their trading account and expect unrealistic profits.
They just dial their broker to extend exposure limits for five to six times and trade in full emotion to get big profits. This is not a trading it is a type of full gambling.
Some times they get profit fortunately , but this type of traders face huge losses and spoil their career in trading.
Risk per trade should be always clearly defined. You should not take too much risk per trade. Always risk up-to which you are fully comfortable.
Never increase your risk per trade. Let the money come slowly steadily and permanently.
Think More. Too Much Analysis Makes Paralysis.
I heard that too much analysis makes paralysis. It is very true and applicable in all areas.
If you find your high probability trade setup then no need to think more. If it is really a high probability price signal for you then just go ahead.
Decide your stop loss , lot size and Profit target and just enter into the trade with confidence following the rules.
If their is no trade setup found or their is no price signal found as per your trading method , But still many traders just start thinking the whole day and if they don’t find anything they watch TV for some news or they just ask their broker or friend for some trade setup.
This way many traders think more and get confused and just get crazy anyhow to trade the market.
The best way is that if you don’t find the trade setup according to your trading method then just shut down your laptop and enjoy the movie.
Get More Arrogant.
Many Traders have a arrogant nature while trading. They just stick to any one trade without placing the stop loss and just watch the trade until their trading account is wiped out.
This type of traders have a revenge attitude. If there trade is going negative they don’t place the stop loss order and just trade like gamblers.
While trading, attitude makes the difference.This is all about the psychology of trading. Many traders generally get overconfident when the trade is moving in their direction and loose their confidence if the trade is going in apposite direction.
Finally to get success in trading you have to follow the rule of trading psychology , Money Management and trading method , then definitely you are on the right path of success in trading business.
Happy Trading.
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