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Monthly Archives: October 2019

Beginner’s luck: How to avoid common trading mistakes

You might not be based in the city, but that doesn’t matter anymore. In other words, trading has turned on its head over recent years, and whether you are stuck in pajamas in your bedroom, or dunning a grossly expensive suit in the city – you can all be part of the same game.

Of course, as we’re focusing on the beginner market today, there’s slightly more chance of you sitting in the former category. You’ve armed yourself with the appropriate software like MT4, and it’s now all about putting this to good use.

Sure, you are going to make mistakes, but the purpose of today is to help you avoid the so-called classic ones and boost your chances of turning a profit.

Be cautious with stock promoters.

One of the biggest temptations for a lot of new traders is to follow the so-called experts.

First and foremost, there are experts out there, but don’t take direct trading advice from anyone.

If everyone bought into the advice that these stock promoters provided, it goes without saying that the world of trading would be turned upside down. Not only that, but if their advice is so valuable, why aren’t they taking advantage of the returns?

Don’t let emotions get the better of you.

Another common mistake is to let your emotions get the better of you. The biggest example of this occurring is when you start to chase losses. Ultimately, it can become a never-ending, downward spiral and before you know if your trading career is upside down.

This is one of the reasons why trading just isn’t suitable for some personalities. It is volatile, and you need to learn to keep your actions stable when the going gets tough or even when you are riding a high.

Don’t rely on gut feelings.

The previous section leads perfectly onto this one about gut feelings. As you will have probably already expected by now, there’s just no place for them in the world of trading. Sure, some seasoned investors might rely on them from time to time but at least as a beginner, this is something that you shouldn’t be looking to replicate under any circumstances.

In your early days, logic is the only answer for you. If something doesn’t add up logically, don’t try and make some sort of other feeling take over. The problem with this is that you never really know why a trade has been successful or not – and your learning curve suddenly grinds to a halt.

Be ready to dedicate the time.

Contrary to what some e-books might promise, trading isn’t a get rich scheme. Sure, there are cases of some people turning huge pro(ts overnight, but these are few and far between. In general, you need to be ready to dedicate the time to your trading career. If you can only spend a few minutes per day, it’s going to be difficult. You’ll never be able to get a feel for the market, and ultimately understand what is and what isn’t going to help you turn a profit.