Some common thinking of novice traders

Novice traders are hilarious because they make mistakes that professionals can’t even think of. It may sound unbelievable to you but when we were at their level, we have also done that same mistakes. Now we are here telling traders and people how to make money, we do not want you to make the same mistakes that we did in our career. This article will tell you some of the dos of novice traders. These mistakes are like the mistakes that all people do when they first start playing Clash of Clan. Each player thinks why they need to build walls when they can move their base simply to the edge of their village and they will have the extra walls for other purposes! This idea sounds fantastic but is not when the enemy attacks. The players find to their horror that the enemies are launching their troops from the sides where they have not think of! It is the edge of the village where there are no walls! The edge was supposed to be protecting the village but as there are no walls and they also could not understand, they lost their loots. The novice traders in this industry also make some mistakes that other people find amusing.

The always dream big

The novice traders are often called as the daydreamers. They think that sky is the potential limit for their earning. To be honest this is absolutely possible in Forex market but it requires hard work and patience. If you start gambling with your trading capital you are not going to make it in the long run. Protect your trading capital from the wild swings of the market. Invest some money to learn currency trading. You don’t have to trade the market without knowing associated risk factors. Consider the first year of your learning period.

Complex trading strategy

As a new investor, it’s very normal to think that complex system will generate more profit. But in reality complex system will reduce your profit factors in the Forex market. You have to rely on simple support and resistance level trading. Never overload the online trading platform with too many indicators. Indicators will only help you to find the right trades. It will never give you the precise guideline to find the best trades in the market. Instead of the indicators, you can use the multiple time frame analysis to filter out the best trades. Multiple time frame analysis is nothing but the study of different time frame data to eliminate the false setups.

Why the hell do we need a strategy, it is money everywhere!

This is the first thought that comes to the mind of every novice when they first trading in the live platform. They saw the chart, they saw the movement and they are spell bounded by the beauty of this currency market. It is natural for them to think in this way as they are new and it is the largest market in the world. When this idea gets in their heads, they begin to place trades without analyzing and lost money. Do not do the mistakes. Never lose your focus on the prize. Eyes on the prize!

Our wait is finally over, the prices are always going up and down!

When the novice traders are first briefed about the volatility, they do not have much idea about what is it? When they saw volatility and the prices going up and down every second, they begin to match the puzzles with their little knowledge. This s when it gets destructive and they begin to trade like mad. They think the God has listened to their prayer and places trades at possible trends. The reason is simple, as the prices are always going up and down, they cannot lose money. It will always come in their favor and they will always make money.

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Created on Apr 13th 2018 02:05. Viewed 376 times.

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