If you want to be an eminent trader, you need to learn from your mistakes. When you are going to do trade, this is common that you will make mistakes. If you want to make money, you have to make sure that you cannot repeat your mistakes. A question can be raised in your mind, how you can stop doing these similar mistakes. There are some mistakes that have been discussed.
92% to 95% fresher cannot control their over-trading. When you are existing in two or several trades in one time, you are doing over-trading. If you do so, you can face a great loss. Most of them cannot go in the long run because of this problem. New traders in Singapore think that if they do more trade, they will make more money. This is wrong. As a trader, your foremost duty is to secure your capital. Sometimes, traders see a winning streak in one trade, so they decide to do more trade. You should remember that market can go against you. This also happens that new traders see a losing streak, they become frustrated and think to more trade to make profits so that they can increase their deposit. Firstly, try to control your emotion. Specify in your trading plan how much trade will you do in a day. Stick with it. Change your concept of making money. After that, you will able to control excessive trading.
Thinking about trading
Most of the newcomers always think about their trading. If you are giving more time to the thought process, then, you are not in the right direction. Some traders are spending more time by looking at the charts. You have to divide your time. In your plan, what you have to decide try to follow this. When you do not follow your plan properly, remember that you will be responsible for your loss. Specify how much time you will spend in chart and trading. Then, maintain these rules. If you can do this, you will be able to be a proficient ETF trader.
Not Utilizing Demo Account
Before trading in the real field, you need to trial your trading plan in the virtual market. Many beginners do not do this. When they try to trade in the real market without proper preparation, they face lots of difficulties as all things are unknown to them. This is not possible for you to apply every tool and indicator properly just gaining knowledge about it. You need practical experience. Many trading platforms provide you the opportunity to trial your plan in the virtual market without investing money. Here, you will get every facility that you find in the real market. You should remember that without practicing more and more, you cannot able to a professional one.
Lack of Mental Strength
Forex market is not a place of relaxation. You will see ups and downs when you will open trade. After facing loss, do not be frustrated. Similarly, when you will make profits, do not be overwhelmed. Nothing is static. If you invest your total money in one trade, you can face destructive consequences. Invest your money in different types of trade, this will limit your risk. Try to maintain another source of income to control your tension. If you are just dependent on the market, you will face difficulties with making money. The market can be changed instantly. Then, you will face troubles, and this will break your confidence.
Not Maintaining Risk-Reward Ratio
As a trader, you need to decide how much loss you can afford instead of how much money. Sometimes, traders change their stop-loss and take profit repeatedly. They are not able to manage their risk. Fix your stop-losses and mention them in your trading plan. Try to maintain your risk to reward ration 1:2. This will help you to secure your capital.