Mistakes most new traders make

How to Trade Forex Market

I was talking to some of my friends of mine who recently decided to start trading, and I noticed they all were making the same mistakes. When I was brand new to trading, just like everyone else, I made dumb mistakes, and I decided that I will list out the  most common mistakes I see new people to the industry making, in hopes none of you will repeat them. The first and most common mistake I see, is people going live with no knowledge of trading, they open up a real account with no strategy or money management, expect to become rich over leveraging and risking a lot on every trade, and very quickly blow their account. Once that happens, they will usually say trading is a scam. The next mistake  I see new traders making,  is they do take the time to pick a strategy, but they break the rules, and when you break rules of a strategy, you can’t expect to achieve success on it, there have been many tests done, you give multiple traders the same system, and they have different results. The reason for that is simple, the people who take the time to learn the strategy and follow the rules, will always do better than those who don’t. Another large problem I see is new traders not treating this like a business, they trade based on emotions, and feelings instead of facts, and expect to just make money with no work. They don’t calculate risk and reward for every trade, and just take everything they see without research. There is no business on earth that you would successfully run and manage without weighing costs and benefits, to ensure profitability on business decisions; this is a massive problem with many new traders who instead, treat this as a hobby. Another large problem for many new traders, is they fall into the idea of if they just find the right bot, they will make money, at the end of the day maybe there are bots or trading robots that can make money, but if you every want to make money with one, you need to understand how it works, and the strategy it runs, that way you know when to use it, and when to turn it off, and of course without updates, eventually it will no longer be profitable due to changing market conditions. These are some of the most common mistakes I see among new traders, and by listing them here I hope they will not be repeated. So please, if you have anything to add comment to all, and happy trading!

Elijah Newell

Elijah Newell

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