Get in the right mindset for trading.
Mistake 1: You trade practically non-stop, trying to open as many positions as possible. You constantly sit in front of the platform and try to catch even the slightest price changes.
What it leads to: Your action begin to become more chaotic, leading to negative results. This is due a potentially large number of rushed trades and irresponsible money management.
How to avoid: Remember that the financial market is the place where the number of open trades does not matter. It is better to practise quality over quantity.
Here your result depends not on the time spent, but on the kind of positions you have concluded and the trading month’s total. If you cannot cope with your emotions, learn how to use trading robots. It may turn out that you will like this style of trading. Moreover, FxPro provides VPS – a virtual server for hosting EAs. The software algorithm will work even when you are not near a laptop.
Mistake 2: You are trying to trade all assets and indicators in a row, indiscriminately, trying to become a specialist in everything.
What it leads to: In the pursuit of new material, you do not have time to learn and master the previous instruments. You constantly miss the appropriate moments to open positions, according to the signals you have already studied.
How to avoid: In order to learn how to get the first stable results, begin to understand the behavior of one particular asset and the factors that affect the change in its price. Select those technical indicators whose operation you understand. Check out the FxPro Educational courses and videos. Practice on a demo account. Only after doing all this should you draw conclusions – such as whether the strategy is suitable for you or not – before moving on to the next topic. Such a consistent approach will help you to avoid missing the tools best suited to your trading style.
Mistake 3: You open a rash trade in the hope that the market will finally turn in your preferred direction.
What it leads to: You become angry and think that the market "moves only against you". However, this is not the case: the market operates irrespective of your involvement. If you continue to lament the markets as being “against you”, then you are jeopardizing all of your trading results.
How to avoid: Accept, once and for all, the fact that such behaviour is a gross violation of risk management. Yes, once a chart may suddenly turn in "your" direction. However, if this does not happen on another occasion, you may get a losing trade – or even more than one. Therefore, learn to say “stop” to yourself every time such emotions appear.
Mistake 4: You are ignoring supplementary education/practice.
What it leads to: You think that you already know everything about trading, forgetting that the financial market is a complex, vibrant structure that is constantly changing and requires more and more new knowledge. The market does not forgive either the lack of knowledge or excessive self-confidence, quickly putting everything in its place.
How to avoid: Attend FxPro webinars, study Educational courses, deepen your practical skills and socialise with like-minded people on social networks. This way you will evolve not only as a trader, but also as a person.
Mistake 5: You ignore money and risk management.
What it leads to: After each unsuccessful trade you understand that you were in the wrong but continue to blame somebody else (or the circumstances).
How to avoid: Invest just a small percentage of your account balance amount into a position. Experienced traders often open trades of 5-10% and do not keep the entire deposit on the trading account. This is because there is the reliable FxPro Wallet: with it, part of your deposit is protected from market fluctuations. Try to comply with this rule and evaluate its effectiveness.
Mistake 6: You do not have clear rules for opening and closing positions – instead you choose to trade randomly.
What it leads to: Regardless of your experience, you turn into an amateur who relies only on luck and intuition. However, in fact, one of your mistaken trading ideas follows on to another, and continuous research of strategies fails to bring any results.
How to avoid: Remember that a trading plan is a document that can be called a "passport" of your trading. For tangible results to appear, need to accustom yourself to such creating a trading plan for several months. Each week, you need to analyse your positions and adjust the strategy. By the way, its conditions should be written on paper, by hand. You should also clarify under what conditions you will both open and close a See the next card.
Mistake 7: You do not keep a Trader's Journal and do not analyse it.
What it leads to: From month to month you get the same results, which leads to disappointment in trading.
How to avoid: It’s worth understanding that if you don’t know the kind of trader you are, or the advantages and disadvantages of your trades, then you will not be able to develop. A Journal is a mirror that demonstrates the essence of your trading style. It protects you from committing the same mistakes. Having studied the weaknesses of your strategy (or even the manifestations of your emotions), you can find the right solution.
Mistake 8: You are not taking a break from the market.
What it leads to: Loss of concentration, lack of new ideas, nervousness, potential quarrels with loved ones and poor health.
How to avoid: Learn to relax and not be distracted. Start writing down how much time you spent on trading and the results you achieved. Paradox: if you start monitoring the market less, it will positively affect your productivity and interest.
Mistake 9: You substitute trading for an emotionally charged life.
What it leads to: You perform deliberately risky operations only in order to experience a range of all kinds of feelings. As a result, rash actions can lead to an unsuccessful bidding outcome.
How to avoid: Accept the fact that the financial market is intended primarily for work, not for adrenaline. Live a busy life, enjoy every day, try new things, travel, do what brings you positivity, and then you will have a different attitude to trading. You will begin to trade calmly and make informed decisions.