Mistakes of Forex Traders – Try to imagine, when is the best time to learn something. Was it when we were young? In those days, when trying something new and then making a mistake, it happened quite often.
Learning to invest is not much different from that. Although in the end we can fix it, but by observing the mistakes of a beginner trader that often occurs, will increase our chances of becoming a successful trader. These tips do not only apply to young traders, but also to traders who may be late in the world of trading.
Here are the mistakes beginner traders often experience (myself included).
in the category of delaying this is not good, because every day the market always moves very quickly. A good research idea is not easy to come up with every day, so it is very important to move as quickly as possible before the market leaves you. However, a novice trader may be late for a move due to the fear that he or she is not experienced enough, even though he can actually use stop-losses to limit his mistakes. this element can cause 2 scenarios as follows: Take for example: Where a trader makes an analysis and gets a pair of currencies that will move up from 1450 points to 1500 points. Then a scenario arises as follows:
Traders will think long on buy position with the pair, while the price of the pair has moved to 1500 points. Traders may still enter the market by buying at 1500 and hoping it will continue to rise.
Traders regret not entering the market quickly, then try to find a replacement market. As a result, these traders will open positions on other pairs without doing an accurate analysis.
A young trader or a beginner will usually be more daring in taking on a bigger risk. Where they are usually more daring to speculate even though they do not know correctly and understand how to do an analysis. As a result, the error results from this speculative effect can cause fear trauma in opening positions in the future.
Most beginner traders start trading with a capital that can be said to be very minimal with the lure of getting a large profit. It’s a good idea to prepare enough capital before deciding to enter the world of trading. It’s like you are the captain of a ship, the bigger the ship you have, the stronger you will be in crashing big waves.
Lazy to study
If there is a currency pair or trading product suddenly its movement drops drastically, novice traders will usually expect to be able to go back up and hold the floating loss. A very important factor in the world of investing is asking why. Why come down? What is going on ? And it is the responsibility of a trader to find the answer.
As I have previously mentioned, a young trader or novice is usually more concerned with getting a big profit without seeing the risk. Beginner traders usually tend to think about how their money will “grow” in the short term (short term), and not think about long term investment goals. In addition to the above problems, surely every human being has made a mistake, because mistakes do not look at how much or how little a person experiences in his daily life.
Likewise in trading activities, a mistake a trader is something that cannot be separated from every action/decision he has taken. It is true, every trader also knows this and also understands the basic nature of human (in general). However, in reality, the situation and circumstances are often reversed, where a trader will often be engrossed in his “own world”, so that he forgets the mistakes he has made constantly.
Dare to lose, but afraid to take profit. Have you ever heard that statement? Or are you still stuck in that situation? A mistake that does sound very silly to do and it cannot be denied that the decision was made by holding the position while the floating loss continued, on and on… until the worst scenario was MC (Margin Call).
And strangely again, when a trader is making a mistake in determining the TP (take profit), the price position is rising slowly, then a feeling of anxiety arises, fearing that the price will rebound (reverse direction), without realizing it. As a result, the profit that should have been bigger, was released by immediately closing the position at the wrong time (without money management). In an example of such a situation, usually a trader will trade based on his hunch not from in-depth analysis. So it is natural, a trader’s mistake is a trading risk, especially in the learning process to avoid emotional instability. However, if the “same mistakes” are made over and over again, it will look even more ridiculous, right? Then comes a regret, it always happens to almost every trader. Regret when it is too fast to take profits, and regret when it takes too long to “accommodate” losses.
Begin to believe in yourself and be disciplined in the analysis you have made, that way you can only appreciate the results of your own analysis without ending with a deep sense of regret. There is really no intention of demeaning or harassing a trader who has made this mistake. Because essentially this article just wants to remind each of us, whoever you are, including myself, to avoid the same mistakes in the future.
How about you? Do you feel the points above are still common in your daily trading? Therefore, let us share together with other traders here.
Inspiration from: aroundforex.com