Infomediaku.net | 6 Most Common Trading Mistakes You Should Avoid
What we think will greatly affect the way we act, including in forex trading. Not only negative thoughts will cause failure, but excessive expectations will also be fatal.
In this article, we will discuss six kinds of thoughts that are common to traders and have the potential to destroy their trading account. You should try to avoid thinking about things like the following if you want to exist in trading.
1. “Trading Forex is my Last Hope and for that I Will Work Really Hard”
If you think that forex trading is the only option for achieving success in life, then you may never make any significant profit. A trader with a “desperate” way of thinking and eagerly hopes for financial success from trading results will have the wrong attitude and view of trading, and tend to force profit on every trade he makes.
From the fact that often happens, it is almost impossible for a trader to be truly successful as long as he has a strong desire to always be right in anticipating market price movements.
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Traders who are relaxed and don’t feel burdened to always gain profit will usually be able to view the market objectively and do not always force themselves to open trading positions.
If your way of thinking happens to be like that, you should try to change it by not focusing too much on the trading results you will get. You don’t need to be afraid of losing the opportunity to be able to make a profit because the market always moves very dynamically.
Every time there is always an opportunity for profit as long as you are able to trade objectively and do not force an excessive-end result.
2. “To Trade this Time I Have to Profit”
This kind of thinking is very common, especially in novice traders. Traders expect the results of every trade they make and ignore the fact that we cannot expect a definite result from every trade we make.
This is because in trading there is always a random distribution(random distribution) between winning trades and losing trades, no matter how sophisticated the trading strategy or system we use.
We will only know the final results of our trades after a few trades, within a certain period. What we should do is work according to the trading plan and always evaluate the trading results for a certain period through a trading journal.
A trading plan is a systematic approach that governs all aspects of trading. Without working systematically it is difficult to get consistent results. If you always focus on the results of every trade you make, then you will not know your true trading potential because the trading strategy and system you apply will only produce after a certain trading time period.
If your mind is still focused on the results of each trade, then you can start changing it by focusing on the strategies and trading systems that you use and have been tested. Are the results after a certain period still in line with your expected profit percentage?
If it deviates from what you expected, do an evaluation, especially whether you are disciplined in responding to every trading signal generated by your trading system.
3. “By Trading, All My Financial Problems Will be Resolved”
Some people start trading with a lot of debt. They expect large profits in order to solve their financial problems. This kind of thinking will certainly affect their trading process.
You must be financially prepared before starting trading and try to separate personal financial matters from trading results. In trading, you cannot rely solely on luck.
Many traders expect instant results with the assumption that trading can replace their current job, or they immediately jump into a live account with less preparation because they want to catch up on income due to job loss.
Please note that to be successful in forex trading takes a long process and time. The prospects for forex trading are very promising, but if you are not really ready mentally and with trading knowledge, then forex trading can make your financial condition worse.
4. ” I Have to Grow My Account as Fast as Possible “
This thought generally exists in novice traders. In fact, it took more than two years to develop a trading account for consistent results to be obtained. That is if you are trading with a plan that is implemented with discipline.
The more you want to quickly get results the farther away from the results you expect. Usually, traders who want to quickly develop an account tend to increase their position size or trading lot size.
If you do not apply money management correctly, you will most likely experience losses because of uncontrollable risks.
5. ” I Will Start Trading with Discipline and Patience As My Account Grows ”
Usually, this thought lies with traders who have failed because they avoided the most difficult part, which is discipline and patience. If you can’t change your mental attitude when trading, then you will tend to return to being indisciplined and impatient when your account really grows.
This is related to emotional factors that have a negative impact, namely greed, fear, hope, and regret. 6. ” The more often you enter the market, the more opportunities for profit ”. This thought often occurs in those whose trading results are inconsistent and tend to experience frequent losses, so they tend to get carried away with emotions to open positions or over-trading.
The more you enter the market does not mean more opportunities for profit. Without a trading plan and a proven trading system, over-trading will only destroy your account.
In order for your trading account to last a long time, you must be able to avoid these six thoughts. As previously mentioned, success in forex trading requires a long process and time.