15 Trading Mistakes That will Cost You Money
Trading without first studying and analyzing the market
Do not rush into trading, you have to stop, analyze and study the market movement before you open a position, and when you open the position you have to know the behavior of the instrument, by so doing you will know when to enter and when to exit the trade.
Trading without a trading plan
If you fail to plan then you have automatically planned to fail, having a trading plan is essential to your operations, Think about what you really want to get from trading then work out how you’re going to get it. Consider the amount of time you’re able to dedicate to trading, the types of trades you want to pursue
Relying on automated trading and technology
There is no doubt that the availability and accessibility of technology have made a lot of impact on trading, but a technocratic once said machines are just machines sometimes they fail because they are man made. Do not rely too much on the expert forex advisors if you do not want to lose money.
Do not quickly get over the rainbow, It is good to be excited about trading and confidence is always a welcome characteristic, but don’t let emotion dictate your trading behavior and push you into positions you wouldn’t normally take. When a trade is winning normally emotions takes over but never let them override the trade just relax and enjoy the profits .
Trading without a stop loss order
Trading without a stop loss order is very dangerous it will cost you a lot of money if not all of the balance, its like jumping out of a plane without a parashot .Using a stop loss properly will save you from going into a deep loss.
Opening too many positions
Never swallow too big at once you will get choked, take a bite at a time, unless you have a robust and automated trading system that automatically places trades for you, monitoring too many positions can be confusing and high risk.
Not taking profit in time
If you are making this mistake its not an usual thing, many traders really do so. Know when to run away from the crime scene when you have made enough profit, how many times have you perfectly timed your entry, seen a nice paper profit, only to see it vaporized by a sharp reversal.
Trading with Excessive leverage
When trading using leverage , many traders are tempted to open the largest possible position, yes you might win big but your losses are detrimental if you are to incur some.
Neglecting your trading journal
Using a trading journal is a very critical part of becoming a successful trader. It isn’t as simple as recording your entry and exits for profitable trades, this must includes both good and bad trades.
Not being able to accept losses
If you cant accept a loss that unacceptance becomes a loss on itself, it is important to accept what happened and move on instead of letting your pride control your trading style, and hold onto those losers longer.
Trading in multiple charts at one go
Many a times inexperienced traders jump from market to market – from forex to indices and cryptocurrency to commodities. This is a common mistake and it can lead to over-trading and significant losses.