In transactions, there are many trading mistakes that cause beginner traders often experience loss, this can occur because of negligence, because they have not understood what they are doing well or because of negligence, and may be because they are still relatively new or not yet experienced in their fields of interest.
If it is compared to a pyramid which gets tighter and tighter, in the trading world those who survive and are at the top of this business are only a few of them who try to continue to understand and want to learn from mistakes so they can taste their success.
In this article we will see 5 trading errors that cause beginner traders often experience loss and finally feel deterrent and give up trying again.
1 Speculation (trading = gambling)
At first there were a lot of traders who were too brave to take more risks than they should. Maybe because it is too deep into the principle of "high risk high return", but unfortunately it is not based on the results of analysis and calculation, but rather instincts and feelings.
Since trading is a business, you certainly cannot expect good luck. Again trading is not the same as gambling. If you only bet by depending your luck on luck, believe this business will only swallow all the capital you have.
Speculation is the first thing that often arises in the minds of beginner traders in the hope of making a lot of money in a short time. And for that, they often lose all the capital they have.
2 Emotions (Fear and greedy)
Facing market conditions that are always changing dynamically is not a mild challenge. In this case a trader is required to be able to control his emotions.
Considering that trading is 90% of games that rely on emotions, it is not an exaggeration if we assume that there are many beginner traders who always lose their money just because they cannot control their emotions.
Before trading, you might have learned a variety of methods and a good trading strategy, but everything will be useless if you cannot control your own emotions.
Fear and greedy are things that generally occur, often young traders dare to take risks by holding floating too long and delaying to take the profit they get. In fact what they get is just a loss.
3 Enter the market too often
Thinking about entering the market frequently will also get more benefits, but the fact shows that those who enter often will always be tempted to make even unfavorable transactions.
Jesse Livermore once said:
"Don't try to play the market all the time. It can't be done, too tough on the emotions. "
When you enter the market too often, your emotions will always be provoked to generate more profits, even though you know that the market moves in an unstable condition (where the analysis and strategy used does not go in the direction you expect). But in the end you are still tempted. Facts in the field show that many beginner traders don't realize it.
4 Too busy looking for justification
There is no single trading strategy that is perfect. But why is it still that most traders are busy looking for profitable trading strategies from other traders?
In addition to just wasting the time you have it is also considered not to be effective because each trader has a variable that is different from the capital to the ability to handle risk. The more you are looking for the perfect trading plan, the more confused you will be to apply it.
"Remember keep it simple stupid!"
All you need to do is still understand it / use the trading strategy that you have in a simple way. The simpler the trading strategy you have, the easier you will be to understand it.
Most of what happens is that novice traders make it too difficult for them to find the best trading strategies.
5 Don't learn from mistakes
Understanding all related information is a must in investing. A trader certainly cannot expect that the market will immediately rebounce after experiencing a drastic decline without knowing why, and keep holding the floating for a long time.
Beginner traders are often trapped in this position where, they always assume however the market will always return to its original position without looking for related information that will cause it to happen.
However, regardless of the mistakes that occur in your current trading pattern, it is expected that you do not do the same thing in the future and learn to know what might be your barrier to achieving full profit. Most beginner traders always make the same mistakes and expect different results
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