It is essential when operating that we have a plan that guides us on the type of entries that we are going to make, as well as the amount. There are many strategies that work, but if we operate without following fixed parameters we can make many mistakes, as a result of this first fundamental and primary error.
2° Emotional trading:
Operating under the influence of emotions can lead us to make very serious mistakes. For example, due to euphoria or overconfidence, we can come to believe that we are “infallible” and start making operations based on that type of emotion, and not on an established criterion that effectively lets me know that this is the decision. correct. Or on the contrary, guided by a feeling of revenge, and wanting to “recover” as soon as possible from a losing streak, or end major losses.
3° About operating:
Having a plan that indicates the number of daily operations that we can carry out is very useful, since we must understand that a greater volume of operations is not necessarily going to imply better results. Many times our account will grow more for those operations that we decide not to take, compared to those that we do take. Being selective in the operations we carry out will undoubtedly lead us to great results. In short, in trading you do not earn money by the number of operations that are executed, but you earn money by the quality of the operations that are carried out.
4° Believing that it is a simple profession and that we are going to “become millionaires fast”:
There is a common misconception that large sums of money can be made in trading just by “touching a few buttons” and without any training. This is not correct: trading is one of the most complex professions in the world and to perform properly we must have a suitable preparation, with realistic expectations.
5° Not managing the risk:
Not placing a loss limit according to the risk that we are willing to take, with the idea of earning a lot of money, is another of the most common mistakes that we tend to make, as well as risking too high a percentage of our account, with the illusion that the market will do what we want.
In conclusion, there are more mistakes that a beginner trader can make, but ultimately these are the most important and are the ones that, if not taken into account, can cause you the greatest difficulties when it comes to achieving consistency in your profits.
If you take them into account, you will already be one step ahead of those who do not and one step closer to obtaining the results you are looking for.
From N&W Professional Traders We hope this article has been useful to you. Suggestion: never lower your arms, all results are possible with the right effort and perseverance.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
