Common Trading Errors Vol. 1
Old habits die hard. As you start off as a beginner trader, you are bound to make lots of mistakes - this is a learner’s typical path. But there are some errors that persist to follow traders even as they are years into their journey! 😯
We say - Recognize, Face and Eliminate! ✊✊
1. It would be easy, they said...
Indeed, Forex trading is no rocket science. You don’t need a specific background or degree, and it is true that absolutely anyone can do it. But it hardly means you can read one “Basics of Forex Trading” article and go all-in with your money.
Understanding Technicals and Fundamentals requires a share of time and research, as does developing a strategy and disciplining yourself to keep a cool head in a volatile and uncertain market environment. Even when you consider yourself an advanced trader - there is always something to learn!
2. Cutting profits too soon & letting losses run
Ignoring your strategy and thinking “It was quite a big move already, certainly it’s time to leave before it crashes” or “It fell so much already, it can only go up now, let me wait it out” plays a bad joke on traders regardless of experience level. Sticking to your strategy (which after the previous point we assume is well-thought out and based on elaborate Technical and Fundamental analysis) is key.
3. Over-reliance on news & guru speeches
News are a crucial part of Fundamental Analysis, and it’s a fact that trading news is a real profit-making opportunity. However, always consider the amount of different sources and the power of misinformation. As for Warren Buffet’s public speeches and Free Analytics Guru advice...Would this secret information indeed be public, if it was the absolute truth? Don’t make a trading plan for the day by a glimpse of one article, triple-check your info and resort to reputable sources.
4. Overdoing on, or Ignoring Trends
The trend is your friend...until the end when it bends. One must absolutely consider trends, but it’s vital to research a trend enough to understand when it’s time to enter/exit a trade, not base your analysis on popular opinions and “gut feelings”. A stock’s Volume and Price Direction, for instance, is a good thing to look at when working with trends.
...Stay Tuned For Vol. 2...!🤩