When people enter in the world of trading, most of them believe that it is luck, and that they will make thousands of dollars in just a few days, and that is a big mistake!
That is why in this article we will show you some of the common mistakes that beginner traders make, so you can avoid them and learn how to trade in the best way!
The world of trading has recently become one of the most frequent ways to invest and thus obtain extra income. Many people left their previous jobs to pursue this trade. The most used markets are the Forex markets that are dedicated to the purchase and sale of currencies, and there is also the cryptocurrency market, among these there is the most popular that is Bitcoin, and many others.
First, you must know what a trader does
A trader is a person who is dedicated to carrying out operations in the market. This consists of operating, investing, and negotiating in the different financial markets to obtain profits.
They make use of their knowledge to do technical and fundamental analysis, and many of them also operate through automated systems, depending on their preferences.
So, if you want to be a good trader you must get as much education as you can before you start investing your money. That is why we will show you the most common mistakes of a trader, if you are making these mistakes, do not worry, we will give you some tips that you must follow to correct them!
Mistake 1: Do not have a plan or strategy
Before starting, it is important to do an exhaustive analysis of the charts to have an idea of how the market is moving at that moment.
You must also consider the news and events of the day so that you can act correctly at the right time and thus avoid losses.
Mistake 2: if you do not have knowledge
As we mentioned before, some people believe that it is just luck and nothing more. You must know that you will have to get trainings, prepare, and study the market. So, the main recommendation is that you take trading courses to learn a lot!
In BLW, your education is our priority, that is why we have a lot of products that can help you learn! We have two amazing academies. The BLW Trading Academy, where you will learn the basics about Binary and Forex: https://blwtradingacademy.com/ And, if you want to learn more about Binary Options, then the BLW Binary Options for Beginners is for you: https://binaryoptionsforbeginners.com/
Mistake 3: do not set your limits
It is one of the most common mistakes made by beginner traders.
For example, you start trading, and you lose one operation, okay, you continue trading, but then you lose another operation again, and you continue trading! At that point, you will have a lot of emotions and you will not be focused, and this can cause you to lose more operations. And that is why some people blow their accounts.
If you do not have a control capacity, it will be necessary to establish stop losses in the broker with the intention of protecting the initial investment. Our recommendation is always stop after 2 loses, there will be always more days to make money!
Mistake 4: if you are not realistic
Many times, we have heard testimonials from professional traders who say that it is possible to generate quite a high income without doing a lot of work and in just a few hours. Is it true? of course not!
People who say that are scammers, make money in trading requires patience and a lot of education! You will have to make an effort and be realistic if you want to make money in this business.
Mistake 5: if you over-trade
Being a successful trader does not mean that you will always have open trades. Sometimes it is necessary to stop, observe, study trends, and analyze them. In this way, you will know exactly when to enter the operations, and you will be clearer about what you are going to do. As a trader, you will have to accept that sometimes it is better to stop winning than to lose.
Mistake 6: get carried away by emotions
It is one of the most difficult mistakes to overcome since as human beings it is difficult for us to let go of our emotions, which can lead us to states of euphoria, discouragement, or even frustration from one moment to the next if something goes well or wrong.
You will have to be vigilant and not fall into emotional trading, this can cause you to trade incorrectly. Remember, there will be bad days, but try not to stress and you will see good results!
Mistake 7: using excessive leverage
When we talk about leverage, we refer to operating with more money than we have with the help of a broker, this can bring invaluable income. But it can also generate losses if things do not go as expected. Patience is very essential in this matter!
Mistake 8: do not choose the most convenient broker
We emphasize it again, do not get carried away by the testimonials of certain influencers who recommend brokers telling you that you will become a millionaire like them overnight. You need to do your own research so you can use a reliable and trustworthy broker.
Conclusion
In this article, we were able to see some of the most common mistakes that beginner traders make when they start in the markets. They are not the only mistakes, but we assure you that if you follow the small recommendations that we gave you, you will have a much better chance of being successful!