Number one biggest mistake new trade commits is they treat forex trading as a money machine. Open trade and make profit. They think it is the easiest job in the world. But in reality you need profound understanding of the market. My advice to new trader is gain necessary knowledge and skills.
We can only warn traders about how emotions can be harmful in trading. They would actually come to know only when they have made significant losses. Only with these losses comes the actual wisdom. So, I suggest new traders to start small in order to avoid big losses while initial trading.
Most of the newcomers in forex trading start with a huge amount of cash without any understanding of the trading pattern or assistance and end up with defeats, so newcomers must take up assistance from promising brokers, as they will offer training in the forex market through their educational materials and video clips.
Other than studying the nature of the forex market, one thing that has helped most is a trading journal. All traders should know whether they are growing or not. With the help of a trading journal, traders can figure out the flaws in their trades and can trade better in future.
I think that one of the worst trading habits is trading during consolidation. It’s so easy to lose money when trading during consolidation but many newcomers keep trying. Perhaps, there’s something attractive for them here.