Those who have been in trading for a long time are probably aware of all the classic mistakes that traders make. Hell, they possibly have made several of these classics on their own. But markets keep on attracting new people. And these newcomers need to be aware of the classic trader mistakes that you should be sure to run away from!
1. Thinking you can time all your trades in all the markets.
2. Thinking you can pick assets without research.
3. Thinking you can do it without education.
4. Thinking you will be able to do it without adjustments.
5. Think you can do it without demo account.
6. Thinking you cannot do it.
1. Thinking you can time all your trades in all the markets.
Spoiler – you can’t be timing the markets. It is difficult. And not even all the pros can do this. Market are unpredictable and they simply have too many players and influencers for you to be able to predict where they are going to move and when the movement is going to happen.
You need to understand that when it comes to communicating with the markets, you are not the lead, you are the one being led. And you need to make your peace with it. Do not try and time the markets. Better learn how to deal with the timing that the markets are offering you.
2. Thinking you can pick assets without research.
That is not possible. Of course every trader has the most beloved asset and most of the traders prefer to trade with the couple or stocks that they know, but they still do that after a daily research.
Thinking that you can pick an asset for the day, or worse – trade with just one asset, is only going to do you harm. Be sure to do you research and always consult with your signals provider or your broker, which assets you should choose for the day it you are not sure in your initial choice.
3. Thinking you can do it without education.
And I am not talking about education in classic sense of the word. Of course, you do not need to have attended financial classes to trade, no. But you are going to have to make an effort and study hard. You need to understand that trading is whole another profession and in order to be successful, you need that special knowledge that makes you successful.
It is especially true when it comes to currency trading and currency markets. There you are going to find patterns, terms and information that you have never come across before. And the more you are willing to study all of that, the faster you are going to see the results of that.
4. Thinking you will be able to do it without adjustments.
Yes, trading is going to bring some of the adjustment need into your life. Not only you are going to have to set some time apart for learning, you are going to have to find time for trading itself, aren’t you?
Trading takes time. And if you are going to like it, it is going to start taking a lot of your time. It will be like a second job to you – something that you might not be ready for.
And say that you have become very successful. What’s next? You need to invest that money somewhere! So, a whole lot of thing to think about, right?
5. Think you can do it without demo account.
Demo accounts were invented for a reason. Every good broker offers a demo account for its users to be able to warm up and to understand whether they like the whole process. In demo you are not earning any money, true. But you are not losing any money as well. Demo is perfect tool for you to test out your knowledge and your strategy.
Never hesitate to use demo, even before your regular trading session – warm up is needed in every situation.
6. Thinking you cannot do it.
A lot of traders quit pretty quickly as they think that they cannot do it. But they really can! You just need to push through this tough period of being a newbie and you are all set – now you are a professional trader! Enjoy it!
