True! This leads to trade Without a plan. Traders then are more likely to make impulsive decisions based on hunches or gut feel, rather than following a defined strategy. This can lead to losses, as well as missed opportunities when the market moves in the opposite direction to what was expected.
Newbies generally focus on making large amounts of money as they begin and settling unrealistic expectations can lead to downfall. Patience has to be practised along with understanding that for things to come into fruition, subtle moves need to be made. Fear can cause a menace and so can impulsiveness. Traders need to have an adaptive attitude and be prepared for any situation.
henrytrade posted: The most common mistake that traders make is that they become overconfident after earning a profit and often take trading lightly.
Yes, I agree that usually one’s mind gets into the greed of more after gaining some profit and then does not take the decision wisely. Trading should be done calmly and not in a hurry based on happiness of profits.
lauraJohnson posted: We make the basic mistake of becoming overconfident and sometimes underconfident. We must learn to be objective.
Yes, I agree that the basic mistake revolves around confidence and skills. Correct information with practical implementation gives positive outcomes . Also, sometimes the traders want to trade faster because of greed that really messes up everything.
Having a misconception that forex trading is an easy way of making money is what we all start forex trading with. But since it is not always what we expect the market to get us, we end up realising the reality after making a few losses.
Nearly all new traders are too curious to make money. We don’t want to waste our time on analysing the market and expect that we will be able to make money from the day we start. Eliminate this thought and focus on your learning and money management techniques so that you don’t lack anything.