Trading is a series of decisions. And you have to be very sure and think with a very clear mind about each and every one of them. But, you have to understand that not all of the decisions, that you can make while trading, are good. There are some decisions that you have to avoid making as they will do you absolutely no good.
So, what are the worst decisions that you can make while trading?
1. Open too many trades at once.
2. Planning instead of trading.
3. Only trading short-term.
4. Never using demo.
5. Only trading according to the news.
6. You make alteration to existing trades.
7. Trading during a low demand.
8. Trading, because there is nothing better to do.
1. Open too many trades at once.
Surely, opening several trades at once, if you have several brokers seems like a good idea. And it is. It is just that you have to know your limit and never open one too many trades. If you cannot stretch your attention span to more than 3 trades, then you should not even try doing it. Otherwise you can just forget about any possibility to win.
2. Planning instead of trading.
Don’t get me wrong – planning your trades is a necessary part of the process. But, if the majority of your time is wasted on planning and not on trading, then you are doing something very wrong, my friend. Remember, that while planning is importantm, over-planning might kill all your chances for a win. You are simply not going to have enough time to trade.
3. Only trading short-term.
Short term trades are a good and quick way to earn a few bucks, that is true. Plus, if you do not have the time and patience for a long trade. But, do not forget about the possibility to put down long trades for several days or even weeks. Trades like these can give you quite a lot of possibilities to earn without even having to follow the chart.
Do not discard the possibility for a long trade.
4. Never using demo.
Demo accounts are simply a gift from God. It is the best thing that a newbie trader can use in the markets. And even experienced traders use it sometime to warm up and get ready for a day ahead. Not using this possibility to warm up is a big mistake that can result is losses in the future.
5. Only trading according to the news.
Markets. Although tightly connected with the news and the world, do not always move in a predictable direction. A lot of traders were burned by these believes – markets are not always going to move where you think they will. Use all of the meansof analysis for a successful trade. Analysis based solely on the news can make you lose a lot of money.
6. You make alteration to existing trades.
Even though MT4 gives you the possibility to alter a trade while it is still ongoing, it does not mean that you have to use this feature. It is better that you place another trade with another set of setting right after the current one takes profit (hopefully). Alterations of the existing trades can cost you your winning.
7. Trading during a low demand.
Markets and assets have the best times when you can trade them. And trading and expecting huge profits while the demand is low and peak trading time has passed is only going to bring you disappointment. Be sure, that the optimal treading time frames are set for a reason.
8. Trading, because there is nothing better to do.
Trading takes commitment. Trading takes guts. Trading take time and effort. Trading out of desperation is not going to give you the right motivation and as a result you are not going to see the right outcome of the process. just be sure that you know, why you are trading.
