The list of details to take into account to develop a profitable trading operation with possibilities of success in the medium and long term is quite extensive. If you are starting as a trader, you must be patient and not be discouraged. Many of the frequent mistakes when trading will be able to identify them as you gain more experience through practice.
However, there are several especially damaging errors for your trading account that you should try to avoid from the first moment. If you are able not to fall for them, your chances of survival will increase considerably, and you will notice a virtually immediate improvement in your performance.
Let’s see the list of these main mistakes of the beginner trader:
We know as overtrading or over-operating, the tendency that all traders have (because it is something that affects us all) to operate in excess.
One of the first rules that we must assume is that to be operating in the market does not necessarily imply having open operations. To be operating also means to be observing and detecting the best moment of entry into the market. On many occasions, our account will grow, not because of the operations we do, but because of the ones, we stop doing.
In an analogous way to overtrading, the trend of the beginner trader also tends to be that they leverage excessively in operations. A clear symptom that is operated thinking only of the possible benefits. That implies taking great risks per operation that, in many cases, lead to the loss of your trading account prematurely.
One of the main rules that we must follow is to not only think about money when making our trading operations. The desire and the impulse to see significant gains in our account should not cause us to assume excessive risks of losses.
Just Think About The Technical Analysis
It is certainly one of the most common rookie mistakes in trading. Many traders are constantly searching the Internet for information on winning trading strategies that are reduced to technical analysis: what indicators to use? What Affiliate is (Affiliate คือ, which is the term in Thai) required? With what configuration? What time frame?
Even having the screen of a genuinely profitable trader in front of you, knowing when you enter or leave the market, and what indicators you use for it, will not provide us with a successful strategy. The level of leverage that you use, with what criteria you define it, how you manage your risk, how you place your protective stop losses, how you define your profit objectives are even more vital data than the tools you use in the stock chart.