Nowadays, trading is becoming more popular than ever. Every year, a massive
number of individuals flock to the markets, hoping to make quick money. Lots of
individuals are fascinated by ambiguous commercials promising effortlessness and
easy entrance to riches. Many of these ambitious traders don’t succeed because
each person does different and very particular mistakes while seeking for
success. My long experience as a trader has proved to me that most traders
usually fall victims to the same problems and faults. Here are just but some of
the similar mistakes:
Lack of a Trading Strategy: Most traders require a
well conceived strategy to trade the markets, and most mistakes done by them can
be summarized up in this category. The absence of a healthy supportive plan
means that the trader won’t recognize which “events” to concentrate on, the
rules and regulations to trade those events, and money management policies.
Similar mistakes such as not holding stops and overtrading can be also a cause
of this problem.
Lack of Confidence in his Tactics: The only case where
traders will perform effectively is when they are sure about the chances of any
certain approach. A trader must know that it is insufficient to learn it in
seminars but he has to test it himself and try to attain a level of comfort and
confidence that will let him to implement with accuracy.
Monetary Pressures: People believe that this is an easy path to become rich, so
many of them leave their current jobs because they expect to make an immediate
living through trading the markets. As a trader, nothing is more damaging to
your success than facing the pressure to execute.
Insufficient Capital: Usually traders with small capitals face two typical
problems. First, is the fact that they are likely to hold positions that will
occupy a large percentage of their accounts, which in turn might cause losses
that will be more significant than they expected. Second, traders don’t use
Lack of Proper Technology or Too Much Reliance on Only
Technology: Traders who lack the appropriate technology, either because they are
afraid to use sophisticated systems or the lack of commitment to obtaining them
as an essential cost of doing business, face a weakening disadvantage as they
cant develop information rapidly enough, and as we all know, this is a business
that deals with the quick analysis of information. On the other hand, there are
traders who think that technology alone, without the proper training and method,
can solve their problems. It’s illogic for an aspiring trader with no technique
to just depend on technology.
These are not the only mistakes that might
occur but the most common ones.