Newbies can’t understand the situation properly. For this reason, they make huge mistakes and thus face a big failure. Bear in mind, if you’re not capable of dealing with the problems, you can’t get success. For this reason, as a trader, you have to take the preparation so that you can make some money. Bear in mind, if you can’t make the decision practically, you may not get success. However, sometimes, traders repeat their mistakes. And so, they face big problems. But, once they are able to identify this, they may trade smoothly.
In this article, we will point out common errors of newbies. If you want to reduce your mistakes, you should go through the article.
Newcomers are too optimistic. They think that within a short time, they may get success. But, in reality, it’s not possible. As a trader, if you really want to make money, you should work hard. Firstly, it’s important to develop a strong understanding of the market. By developing knowledge about the market, you may understand, without being realistic, it’s not possible to get success. However, if you’re too pessimistic, that may create problems too. So, as a trader, you should learn to blend healthy optimism with a dose of realism so that you can besuccessful.
Not keeping the journal
As traders don’t keep a journal, they can’t identify their previous problems. Keep in mind that as a trader, it’s common, you may make mistakes. But, if you start to make mistakes repeatedly, you might face problems. That’s why you need to make two lists of your losing streak and the winning streak. As a result, you may easily know about the reasons which are responsible for losing money. So, start to take the notes from now so that you can make money. Think smart and learn to take the steps like the pro traders at Saxo. Once you do that, you won’t have any trouble with keeping the journal.
Fall in love with one plan
Sometimes, traders fall in love with one plan. So they face the big problems. As a trader, if you don’t change your plan, for the time being, you may face troubles. As a trader, you should change the plan so that you can cope with the situation and deal with the sudden reversals in the market. But, some traders try to use the same plan in every situation. That’s why they face big problems. If you observe the pro traders, you may find, they always change their plans. And so they can make large profits.
However, try to become practical in terms of changing the plan. If you frequently change your problems, it may cause a big problem. That’s why firstly, you need to observe the situation so that you can understand whether you need to change the plan or not. After making the changes, you must backtest the strategy for being ensured. Otherwise, you might fail to use the strategy properly.
Most of the time, newbies can’t believe they can be a winner. For this reason, they lose hope and take some wrong steps. As a trader, you should keep trust in yourself so that you can get the money. However, try to think positively so that you can get success. If you always think negatively, after few times, you’ll lose your confidence which may create a great issue. However, if you can make the connection with positive people, you may able to generate positive vibes. So, try to stay away from the negative people and always make the connection with the traders who motivate you a lot.
By the way, you may understand, what sort of things are responsible for your failure. So, if you want to reach your goal, you should avoid making these mentioned mistakes. Otherwise, it’s not possible to stay in the market for a long time. So, you have to take trading seriously.