“I’m not succeeding with forex; I close trades when it’s too late and get greedy.”
“I’m trying to catch the trend reversal in the point of extremum and suffer losses.”
“I do not use a trading plan, mostly trading by hit and miss, which is why my gains are small.”
“The feeling of thrill pushes me to enter the market and make mistakes.”
Sound familiar? This is what real traders faced and eventually overcame. “But how?” you may wonder. You’ll learn the answer to this big question at the end of this article. The majority of traders - and not just the newbies - continue to fall into the same trap over and over again. Perhaps, you do that as well. So, what are the typical mistakes made by traders and how to tackle them?
1. Pinpointing a Problem
2. Choosing Solution
Pinpointing a Problem
All problems can be roughly divided into 2 categories: technical and psychological ones.
Below are the issues from the first category:
- Inability to determine the trend and its reversal;
- Picking entry points incorrectly;
- Absence of the trading strategy and/or trading plan;
- Making trades at a wrong time or during extremely high volatility;
- Inaccurate calculation of the trading parameters;
- Lack of knowledge of the key patterns and levels.
Before diving into trading, completing forex trading education is a must. After all, financial markets do not tolerate amateur approach!
The second category includes psychological problems:
- The thrill which leads to an urge to bounce back after losses;
- The greed which results in overstaying positions and losing profits;
- Fears and self-doubts;
- Lack of control over emotions when trading;
- Negative self-talk (“I’m a loser”, “I’m unable to trade”, etc.).
Your trading education should go hand in hand with self-reflection. As we know, most of our problems are in our heads!
How can you address the above problems? There are three ways to do that.
1. First method: Do everything by yourself by trial and error. Select strategies, test out indicators, attempt to have a tighter grip on your emotions when trading. The efficiency of this method isn’t too high. You will have to spend a lot of time, and waste your nerves and probably money from your trading account.
2. Second method: Look for tips online. There is plenty of relevant content and information on trading psychology and technical aspects on the web. Some of them are even freely available. However, there’s a hidden pitfall. It’s the quality and time. There is no way to know whether techniques, methods, and strategies recommended by online gurus are effective or even legit.
If you are lucky, you will be able to find valuable information. That said, you may get recommendations that will eventually destroy your trading deposit! Plus, you will spend months and months on finding correct information while losing precious time and profits.
3. Third method: Comprehensive training. This is a perfect solution for those wishing to quickly acquire tried and trusted knowledge that will produce real profits.
What to know:
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