8 Mistakes of Beginner Traders That Impacted Loss
Beginner Trader Mistake – Mistakes are things that can happen to every trader. The point that must be taken from this mistake is new learning so that it doesn’t happen again. Not a few professional traders who have suffered losses at the beginning of their careers. Here are some mistakes of novice traders that can have an impact or loss.
Why Beginner Traders Fail?
Failure is a Success If We Learn From it – Malcolm Forbes
1. Beginner Trader Mistake: Incorrect analysis
Do you know? That not a few traders are too brave to take more risks than they should. This could be because traders are too deep into the principle of ” high risk high return “. But unfortunately this is not based on the results of the analysis and also calculations but using instincts only. If you are a beginner, you should avoid using instinct or feeling. Because at least as a beginner, you must really understand how the correct and correct analysis techniques can get profit.
2. Unstable emotions
To be able to deal with market conditions that tend to change is certainly not an easy thing. A trader is required to be able to control his emotions because 90% of trading games will affect emotions. Not a few beginners get a loss because they can’t control their emotions well. So it will be very useless if the trader already has a strategy but is still always emotional when trading. The fear and greedy condition is a common thing, because often the beginner traders take risks by holding floating for a long time, and delaying it so they can get profit. But in reality they will only get loss.
3. Often entering the market
Are you a trader who thinks that entering the market often is the best step to getting profit? Unfortunately, this thought is wrong. Because of the fact that traders who do this will actually get losses without profit. When you often enter the market, your emotions will be provoked to be able to get more profit, even though you already know that market movements are in an unstable condition.But in the end you will still be tempted.
4. Never learn from mistakes
Understanding related information is something that must be done in an investment. A trader, of course, cannot expect that the market will immediately rebounce after experiencing a drastic decline without knowing what is causing it and instead staying on hold for a long time. So that eventually the beginner traders actually become trapped in this position. They usually always assume that no matter how the market will return to its original position without searching for more relevant information and can cause it to happen. However, whatever mistakes have occurred in your trading pattern you should not return to doing it in the future. Because not a few beginners actually make the same mistake.
5. Switch from a demo account to an untimely real account
Lots of forex traders who are beginners are not at home to linger on a demo account, because the profits that will be generated on a demo account cannot be realized. So that usually after 1 to 2 times profit, beginner traders often make mistakes that is too rushed to open a real account by being impatient to be able to get a big profit.
Do you know? That the psychology of trading on a real vs. vs demo account is certainly very different. Not to mention when traders have to get the risk of slippage or requite brokers that traders cannot learn on demo accounts. So, with these considerations it would be very wrong if the trader considers that demo accounts and real accounts will be the same. The fact is, quite a lot of forex traders who are still beginners are very surprised when they get trading results on real accounts that don’t match what they want.
This condition is actually rooted in the fault of the tarder who always rushes to open a real account. It’s good to be able to continue the progress that has been made on a real account, traders must at least practice on a demo account for 6 months.
6. A messy risk management
Anyone who has ever experienced a loss because of trading will surely state that risk management is very important. But for beginner traders, many still don’t understand the importance and regulation of risk management, so that they will suffer a fatal loss. It is undeniable that price movements in the forex market cannot be estimated with certainty, so that they will always get a risk of loss that will follow the trader position. If the risk cannot be eliminated, the best course of action is to anticipate it.
That’s the main goal why traders must use risk management in their traditional activities. The mistake of traders who are beginners is not prioritizing this aspect, so it is very clear that their account is vulnerable to risk in the forex market. The worst thing is that traders can get stop out faster because they don’t know how to reduce trading risk.
7. Interpretation of inappropriate fundamental releases
Fundamental release is a price driving factor that will have a significant impact.However, not a few beginner traders who make mistakes cannot respond to these aspects correctly. So that traders who only focus on technical will tend to ignore the big impact of the fundamentals. There are also traders who try hard to get profits after the fundamentals are released. In order to avoid this mistake, novice traders are strongly advised to be able to understand the fundamental release.Although referring to technical, still fundamental releases will be very important to note.
8. Beginner Trader Mistake: Don’t have a trading plan
Lots of forex traders who are beginners do not realize that trading without a plan is speculative. Making a trading plan will be very helpful to avoid mistakes made by novice traders. This is very natural because traders can set their own pairs that have been taken, opportunity strategies, incoming and outgoing signals, until what rare evaluations must be applied in order to monitor the progress of the trading. If all traders have planned from the start, then this will make it easier for traders to trade properly.
That is the 8 mistakes of novice traders that can have an impact on losses. There are so many websites that provide information about how to trade well or fatal mistakes that are usually done by a beginner trader when trading, so you can use it to learn to trade properly and correctly. There are also many strategies and techniques that are the most appropriate and you must learn. So that with so much information it is hoped that it will be easier for you to continue to minimize the risk of loss that you will get later.