Human beings can’t think like computers. They are prone to make a mistake. If you conduct some lab experienced, you will notice that the human error factor is considered while calculating the results. But computers don’t have such problems as they generate the results based on some random codes. Now let’s come to the trading issues. Becoming a successful trader is not so easy. The traders have to face complex issues while taking an intelligent decision at trading. During this decision-making time, it’s very normal to get confused which eventually costs us money. Let’s discuss the top seven mistakes which can be a big threat to our trading career.
Executing random trades
Execution of the random trades is one of the major issues for which you are having trouble to make some serious profess. Have you look at the professional trader’s portfolio. They are never placing such trades since they know the outcome is very dangerous. Successful traders in Singapore never rely on random execution of the trades. They always analyze the important metrics and look for the best signals. So, control your greed and stop executing random trades.
Focusing on indicators
The use of indicators can be fatal for the naïve traders. Though the indicator can act as great tools for the pro traders but looking at the long term goals, it is one of the key tools which you should avoid. However, you can rely on a few sets of indicator but it should be done with an extreme level of caution. Stop blundering the trading chart with EAs and indicators as it will limit the profit factors in trading.
Analyzing the minute 1 period
Analyzing the minute 1 period is tough since the market breaks generate too many signals. And processing such vast signals is not possible for human traders. The pro scalpers don’t trade the market bases on the minute 1 period. The 1-minute time frame should be studied when you trade major economic news. So, stop wasting your time on such a low period as it increases the risk.
Trading with emotions
You have to learn more about the CFD market to develop your analytical skills. Those who trade the market with emotions are making big mistakes since they don’t understand how to manage the trades with logic. The traders at Saxo are very good at managing their emotions. They never rely on complicated methods or strategies. With precise strategy, they easily make consistent profit and lead their life.
Ignoring the trend
The trend trading method can save you money. Trying to trade the tops and bottom is more like pushing yourself from the roof. If you want to survive and make some decent money, you must learn to utilize the potential profit-taking opportunity. Learning to trade the trend line support and resistance level is enough to ensure your profit. So, stop ignoring the major trend and learn more about trend trading technique
Money management is the most important factor that can determine your success. If you trade with the aggressive method and try to make more money, you can’t stick your money management plan. And this will force you to make a mistake and eventually you will blow up the trading account. So, create a strong money management plan so that you can make a profit at any market condition.
Believe in yourself
Having self-confidence is very crucial. If you lose confidence you won’t be able to place the right trade at the right moment. Most of the traders fail to develop their skills and they become a frustration. Frustration leads them to make a mistake. Forex market is a versatile market and you have to learn to diversify to the risk factors. Thinking about some logic can greatly improve your profit-taking opportunity. Never lose confidence in your life as it helps you to achieve your goals.