Every trader has to start somewhere. Even pro traders spent some time of their life as a beginner. Yes, it’s an overwhelming experience. Each trade is nerve wracking and you may be shaking as the market shows volatility in its full glory. However, being a beginner should not warrant you to hug all these mistakes that you can easily avoid just by reading through this blog. Get ready to take note for these might be helpful on your coming trade sesh.
Hastily seeking for that BIG Profit Trade
Let’s admit. We won’t be risking our capital here and there through trading without purpose. Of course, as to any other wealth generating career, we are aiming for the big sweet profit on each of our trades. However, as a beginner, you may be blinded by greed and expect enormous returns in one go. Yes, you may reap that beginner’s luck in your early days but that won’t last you long. Keep it calm and don’t rush things.
Sailing off without a Trading Plan
Tell me, when you’re about to go somewhere for your first time, isn’t it common intuition to check out that specific place’s map or through any navigation app? Getting familiar how to access the place and know it’s in and outs is a must. Just like in trading, you can’t venture out this vast commercial world without your guide in a form of trading plan. The market is full of uncertainties thus you should have contingencies.
Relying heavily on News
Resources such as news on the latest technical market analysis, trends and economic reports are invaluable information and indicators to consider. However, you should be able to weigh in your opinion and act cautiously on this. Keeping in mind that market’s interpretation of this news is what matters. On the other hand, ignoring news won’t be beneficial on your account as well. Try to strike the safe balance and utilize focusing on news moderately.
Trading just for the Thrill
With too much investment at risk, trading just for the excitement and fun is never an option. In order to fully commit on this kind of trade, it requires focus and dedication. This ain’t place to satisfy boredom since there’s real money involved (unless you literally have nothing to do with money). Well if that’s the case, might as well put it into good use and donate to charity. Just my two cents though.
Letting emotion cloud your Judgement
Often than not, time will come where it seems the universe is at your will and your trading game is on its ultimate prime and you just can’t let this leverage pass up. Or, maybe you’ve experienced a drastic loss that you thought of making this big bounce back order that can save you for the loss you had on this bad trading day. Superficially, overconfidence and revenge are mere products of you neglecting to keep your emotions at check. This is a fail proof scenario that you should avoid and just step back and calm down when this happens.
What’s your most favorite tip to tell our newbie traders? Pro or not, log in to your CXM Account now and start trading after this good read
