Basic mistake we make

Learning will give new traders a great advantage. All veteran traders continue to learn new things and advance their strategies.

Michihito posted:
I find that one of the basic mistakes of new traders is their focus only on earning money. It is better in the beginning that your focus is on learning and gaining necessary experience in order to make one profitable strategy, then on simply chasing profits.

One of the biggest mistakes for sure. I focus on risk/reward.

Get the ROI sorted and then let compounding take care of the rest.

croisssan posted:
Many traders make mistakes, this is quite normal. The main thing that I advise you to do is to analyze the cause of errors in order to prevent this in the future.

Completely agree, thats why so many pro traders are so avid about a trade journal. They are always analysing and learning from their mistakes

One of the most common forex trading mistakes to avoid is believing you can succeed without any experience or trading education/knowledge. Many new traders think they are somehow special and can make money from day one but these fantasies are often short-lived and expensive if you don't have a better understanding of the market.

That is actually a good point, from my perspective.
People tend to having it all immediately and this thing is really detrimental when we talk about trading and learning how to trade. It is something like learning how to drive: it can be regarded as a sheer suicide for a person to participate in F1 racing competition if he doesn't even know how to drive. The same thing is about trading: how can you make profits if you don't really know how to trade properly? It is going to be quite the same as driving fast without proper knowledge and skills. In trading however, it will definetely not be the question of life and death but the question of your money. In most of the cases newbies lose all of their money within the first month of trading just because of the fact that they try to earn as much as it is possible without dwelling in risk and money management, market analysis, discipline, trading psychology and so on. They start to take hige risks without even realising that. In the end they are left with no money on their trading account and total dispair in their souls. That is why it is vital to remember that first you need to learn and only after it can you think of profits.

The basic mistake that most traders make is that they don't do any research before they buy. First, you have to know how the economy works and what effect it has on the price of a currency. You have to have a plan on how you are going to trade before you buy anything, don't just go out and do it. This will make a trader more successful in his trading career.

the first mistake is , all we traders think this is place where it is possible to make rich overnight , as a result we trade at random and at the end of the day lost whole equity.

AndrewMcCalam54 posted:
the first mistake is , all we traders think this is place where it is possible to make rich overnight , as a result we trade at random and at the end of the day lost whole equity.

Over confidence and lack of knowledge that is the base reason so many trader lose. When will people learn that you can only get rich through hard work

The basic mistake that new traders make is that they are not prepared with the research and knowledge needed to make an informed decision. Inexperienced traders are often not ready for the emotional roller coaster associated with trading. This leads them to make rash decisions that end up costing them a lot of money.

It is true, however, it is very difficult to keep on learning without having any results for a long time. This thing should be dealt on your own and there are some moments when you have just learn and get new knowledge whatever happens and after it you will be able to trade safely and efficiently.

Michihito posted:
I find that one of the basic mistakes of new traders is their focus only on earning money. It is better in the beginning that your focus is on learning and gaining necessary experience in order to make one profitable strategy, then on simply chasing profits.

I see, most of the new traders use SL & TP in their initial trading stage; it’s a big mistake! If you are trading without any SL position, that means you are taking near about 100% risk ratio! Which is illogical!

According to me, the basic mistake traders make is not understanding the market properly and letting the emotions in while trading.

Michihito posted:
I find that one of the basic mistakes of new traders is their focus only on earning money. It is better in the beginning that your focus is on learning and gaining necessary experience in order to make one profitable strategy, then on simply chasing profits.

You are absolutely right, even I see a number of traders try make money by using others signal or trading system! It’s not a proper way to make money in this volatile arena! New traders need to focus on only learning, instead of earning!

Greed and impatience are always recurrent issues in Forex trading, and all traders should learn how to control their feelings. In the past, I have made many mistakes, but now I am trying to get better by always learning from them to become a better trader.

New traders are eager to make money, but they don’t understand the efforts required to become a profitable trader. Thus, many fail to focus on developing skills and take uncalculated market risks which makes them lose money.

Not setting the right strategy or not placing a stop losses can be a biggest challenges that anyone can make.

JoanneCesser posted:
The basic mistakes traders make are that they keep trading when they lose their investment instead of waiting and don't use Stop Loss order.

Yeah, trading without using stop loss is the biggest mistake traders do and they end up blowing their accounts.

Both beginners and experienced traders can make mistakes. The key is to be able to work on them and react to them in a timely manner.