Mastering the basics of exchange trading is the most important stage in the formation of any player, and trader’s mistakes in the beginning are an inevitable reality. And yet some of them are the same “rakes” that are better not to step on. What should be taken into account when entering the world of stock trading, every beginner trader?1) Do not enter the auction at the time of its commencement, when the situation is difficult to predict.The main thing with experience is an intuitive understanding of the direction of the market movement. But at the initial stage, the risk of making a mistake is too great. So the risk of losing everything in the first hours of bidding is incredibly high. A trader – a beginner – has an emotional component that is too great and always prevails over the mind. That is why it is necessary to give the market the opportunity to stabilize, waiting for the “vague time” of the beginning of trading, and only then it is possible to enter into trading2) Hurry in making profit – the main problem of beginner traders.Seeing the obvious profitability of the deal, the trader closes it, afraid to lose more than can be purchased over time and… turns out to be wrong. The ability to distinguish between ascending trends and short-term growth comes with experience. At first, we need to pay more attention to the use of stop-loss orders instead of closing the deal completely and withdrawing profit. This will buy time and allow you to determine the direction of market trends, which will eventually become the basis for making the right decision3) An attempt to build up a position when the transaction is already off track.That is, by acquiring assets in the event of a market decline, you will only double the losses. There are no miracles without objective reasons and no transaction will turn from unprofitable to profitable4) Active actions at the moment when you are not sure if you are right or wrong.That is, it is necessary to act according to the rule: all doubts are interpreted not in favor of action. Not sure if the planned deal is profitable – give it up5) Attempts to re-enter trading immediately after the loss of assets.Hurry and excessive emotionality are the main enemies of a trader. In a moment of indignation at loss, you are unable to control emotions, and stock trading requires a cold mind and a mathematical approach. Only very experienced traders, who set the trend themselves, can play on “intuition”.To learn more about how to reduce risks, read the article “10 ways of risk management in Forex”6) Aspiration to fix profit at the moment of market reversal in the presence of open loss-making transactions in the trader’s asset.If the market trend changes abruptly, first of all, close the unprofitable deals prone to collapse and only then fix the profit and exit the game (in some cases it is necessary to track the trends – often profitable deals can show growth again after some time). Otherwise, the amount of losses can become catastrophic and completely negate the profits7) Opening a position without cause Giving preference to certain positions without objective reasons, on the basis of some “sympathies” is an unacceptable miscalculation and an inevitable problem of each novice trader. Even if the deal really deserves attention and is “raised” from scratch, be objective8) Closing of the transaction before the time.Closing a deal prematurely on the opening day if it can be extended is another important miscalculation. Patience and common sense make profit more real and, most importantly, profitable9) Bypass the trading system.Do not change the trading rules for one transaction. Even the most profitable trend with a long-term perspective requires careful monitoring of the situation. And if you’re using short-term strategies for trades, give the price the best possible chance of growth within these timeframes, without prolonging them to infinity. Otherwise, sooner or later, you will just get confused in multi-faceted trading situations and lose control over them10) Do not open many positions at once.When applying continuous trading systems, do not forget that the closing signal should always precede the opening of a new one. And he must be in charge. Make a rule: first close the position, then open a new one. This will protect you from unobvious miscalculations and losses in the future11) Do not open a demo account.Refusal to open a demo account and lack of practice before starting work on the trading floor is a miscalculation that can provoke a catastrophe. It is the lack of experience that leads poorly trained traders to the fact that they lose all their investment quickly and irrecoverably12) To trade “on boom” Another common mistake – trading “on boom”, without a trading plan or any strategy at all. The world of exchange trading only at first glance resembles a casino. Random winnings here are rare. All other ways to profit from exchange trading are based on systematic and systematic work, strict adherence to the planned trading plan and a lot of other factors that are quite important.You can learn more about creating your own trading strategy in the article “Forex. Development of a trading strategy” 13) Increase leverage.Attraction to attraction of borrowed funds, leverage is another miscalculation of the beginning trader. Learn to count on your own funds and strength, do not resort to lending until you gain experience – the most valuable object of investment that can be found in the world of big moneyLearn more about using leverage in the article Using Leverage in the Forex Market.Of course, a trader’s mistakes in each particular case can have a much greater variety. But even following all of the above can reduce the risks in the process of trading operations several times. And the most valuable experience accumulated by generations of traders is worth to adopt at least some of its particles. Just so you don’t get painfully hurt for wasting your nerve cells and money. Be cautious and consistent, don’t rely on luck, and everything will work outIf you are still thinking about Forex trading and did not have time to choose a suitable brokerage company, visit the section “Rating of brokers”, where you can compare brokers by different criteria and analyze the proposed trading conditions.
01 Nov