Common mistakes

UweMoench posted:
Common mistakes are those that we make very often. Over trading, revenge trade, fear of missing opportunity and not following any money management policy are the most common mistakes.

Completely agree with this

Yes these are some very common mistakes made by new traders and they should definitely stay away from overtrading.

The biggest common mistake is going for live trading without experiencing a demo account.

Every trader should come prepared with enough knowledge and skills. Their key point of trading is to be patient, greediness will always leave you with loss.

We do not have experience and practice, when we just start, if we have preparation, then it will be much easier for us to do it.

The 2 most common mistakes are the wrong vision about what Forex is and risking what you can`t afford to lose.

Dwane47 posted:
In my opinion, trading without a strategy and with a mindset only to earn a profit during the beginner stage is the most common mistake I have seen so far.

I very much agree with you. Some of the newbies enter the trading world and the moment they get profit, they start investing their everything in the trading market. I don’t know why they don’t use any method like backtesting, so that there are less losses.

I think one should first focus more on making strategies in the starting rather than investing vigorously in the market. Also, this can also be a reason that they are not aware about the market.

@Georgegiffen43 No knowledge of strategies can be a genuine reason for all the beginners out there. Or, maybe their strategies are not working. One should be careful about getting a transparent broker so that they can keep up with the market with real time data and fair prices. Like, I analyze all the trading market fluctuations and price movements through etoro and fxview. That’s why I don’t end up making wrong decisions and end up investing where I can get profits. I think beginners should research before entering the trading market.

First you need to study and understand the essence of how everything works and how to apply it in practice.

Mikehamilton posted:
@Georgegiffen43 No knowledge of strategies can be a genuine reason for all the beginners out there. Or, maybe their strategies are not working. One should be careful about getting a transparent broker so that they can keep up with the market with real time data and fair prices. Like, I analyze all the trading market fluctuations and price movements through etoro and fxview. That’s why I don’t end up making wrong decisions and end up investing where I can get profits. I think beginners should research before entering the trading market.

No doubt that research is needed: be it for finding a broker, strategy to use, technical analysis, etc.

Without enough skills and experience, it's normal to lose money and get scared. Whether new or old, we are bound to lose money if we don't understand the market and follow discipline.

You are right. These are some very common mistakes traders tend to make while trading.

you have done lot of information on this post,  got some fine lines. thanks again for nice post. 

According to me, the biggest mistake a trader makes is not using stop loss.

Overtrading and trading with lots of emotions are among the common mistakes that traders make. You are right to point that out.

Yes, these are the most common mistakes that new and some advanced traders tend to make.

Most people believe that the more complicated a strategy the better it is. They get impressed by colorful charts and think wow this must be something awesome.

It is very interesting but we need to maintain the risk and avoid the volatile market.