5 Mistakes made by Beginner Traders that You Need to Avoid

 

 

 

 The early days of trading are enough to determine the continuity of your trading business. Therefore, it is necessary to have thorough basic knowledge and preparation before jumping directly into the forex market so that you can avoid 5 common mistakes made by novice traders such as the following:

 


 

 

 

 

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1. Trading without a plan

            Money management, risk management, how long it will take to trade, the amount of capital – all these are very important to plan before starting trading in the real market. Many novice traders start trading without sufficient capital, or use their entire savings as capital. Remember that trading is a business with high risk and high return, so it is advisable to use "idle money or money you save" as capital.



There are also many novice traders who do not learn to manage risk well and are determined to take higher risks than they can afford. Especially with the leverage feature. If you are not used to it and are not accompanied by good risk management, this leverage can be a double-edged sword for traders. To avoid this, make a trading plan before entering the market, starting from what strategy to use, determining where the entry level is, to where and when to enter and exit the market (or stop loss and profit targets). 


2. Letting loss

            When in a losing position, there are novice traders who just let their transactions go, hoping that there will be price changes in their favor. If the loss is left indefinitely, it is not impossible that the price will continue to fall until the trader runs out of capital. This is another reason why traders must use the stop loss feature,
because with its stop loss you can stop with the stop loss and continue it at another time with new theories and strategies.
   

 

3. Trading with emotions 

             This is also one of the most common mistakes novice traders make. Trading without controlling emotions can make traders afraid or even become greedy. This error is usually found after a trader loses a trade and makes a loss. Traders can immediately give up and are too afraid to take any more risks, so they simply deposit their balances without doing anything.


In addition to being too afraid, there are also novice traders who become greedy after losing so they are tempted to take revenge trading, where traders try to recover their losses aggressively and open positions 2-3 times the previous losing position. The intention is to get as much profit as possible, but if the price does not move as expected, this step will make the trader experience a much bigger loss. Of course this is not a wise move.


In order not to get caught in this mistake, first study your trading strategy. Find out what you can improve for the next transaction, and stay up to date with the latest news that you can access on the www.fxxprofit.com blog.



4. Lack of education

             Trading business without education is like plunging into the sea without being able to swim. Many novice traders feel dizzy and overwhelmed with various terms, techniques, and tools in trading, so they choose to just be desperate to trade. Of course this is not recommended. Today there are many resources on the internet to learn the basics of forex trading. You can also watch trading videos to learn easily and quickly.



In addition to the basics of trading, novice traders also tend to be less updated on global economic news. In fact, this news can really help traders analyze price movements. Find the latest news and updates on trading opportunities on our blog.



5. Wrong choice of broker

                 Trading is a long-term business, and a broker is your partner. Therefore, it is very important to choose a good and trusted broker. Make sure your broker is experienced, has a clear office profile, offers complete and good facilities and services, and most importantly has an official permit and is under the supervision of BAPPEBTI. Official brokers under BAPPEBTI must have separate accounts or segregated accounts for customer funds. This account is also under the strict supervision of the Futures Clearing House so that the security of customer funds is guaranteed.



Avoid obscure brokers that pop up like mushrooms and offer high bonuses, don't have separate accounts for trader funds, and don't provide traders with education. Usually irresponsible brokers like this will target novice traders who don't really understand trading.


So, you already know what mistakes are common for novice traders? Avoid these mistakes, learn a lot, and do your trading with trusted brokers such as Binary.com, deriv, quotex and pocket options so that your first step in the trading business goes well.









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