Every trade I Made Is in the Wrong Direction! WHY?
As a beginner, whatever you do, your trades always go in the wrong direction.
It happens when you expect more profits without putting any solid balance in the game.
If you are working on your emotional styles, you are getting a flop actor of the trade. Sometimes you have about 250 opportunities before you are kicked out.
Suppose you have done 30 trades today with winning of just 3. Only in the fear of appearing red and in the phobia of seeing green. You break your drive by taking the $3. Before you slipped away with a loss of $10. Many other traders do the same policy.
The above approach brings you to short-term investments. Usually, micro trades secure you before blowing out your capital.
10 Big Mistakes Forex Day Traders Make
Careless pitfalls kill your success in trade. By avoiding these errors, you can win the game. Generally, foreign markets have minimum obstacles to the entrance. That’s why it proves easily accessible for day traders.
As having a computer, a balance of a few hundreds of dollars, and an internet connection you feel yourself a superstar of trade.
In real trade, this entry ticket is not the surety of fast turnover. So before taking an action in trade, never try the 10 major blunders.
Before going to going to other big mistakes of the new traders, experts mentioned that broker choice is one of the key decision for forex success. We recommend regulated low spread brokers like ICMarkets and others.
Below are the brief lines about these mistakes one by one:
1. No trading strategy
Before entering the position, traders with no trading vision face failures. Some participants prepare a powerful strategy to get into the market.
Experts say, if you want to ride horses, the horse will teach you better. The market is full of competitors. Winners seem to eat the losers.
- How do untrained traders fail?
- They depend on reading a few books.
- Just enter the market with a handful of money.
- Expecting to get profit away from the stable traders.
- Totally depending on learning from a financial institution.
- Don’t know how to react to the unpredictable conditions of the market.
- In the high volatile market, use the wrong type of analysis.
2. Stop Trading on consistent loss
Keep a close look at the ratio of success rate to the loss rate. For instance, in the case of winning 60 trades out of 100, the percentage of success is 60%.
As a day trading player, you have to make efforts to keep this rate up to 50%.
On average, the profit-risk ratio is the amount you gain in accordance with your loss. LOSS of $50 to $75 results in $75/$50 =1.5of profit-risk. This 1 points out that your loss is increasing then your profit.
Profit -risk should be up to 1 for day traders. Plus, above 1.25 would be best for them. Although still, you are playing in a winning position, but try to get more than50% to keep the goal of a 1.25 profit-risk ratio.
3. Not Caring for Stop loss in trading
A stop-loss is that neutral command which may kick you out of a trade. It happens when the prize goes opposite to your specific amount.
By having stop-loss orders on trades, traders take a risky decision out of their capital.
Stop-loss avoid you to lose than to control. Commonly, stop-loss orders are considered as a key to blocking losses. In other words, you can say that this instrument is to secure profits.
Traders go on the wrong track when he/she rejects a stop order on losing cards. Often, this pitfall based on the thought that price will hit the reverse gare in the future.
4. Emotional Mindset About Investment
If a trade goes against traders’ expectations, they feel insecure. As a result, they can’t control their emotions.
Sometimes, people go wrong in avoiding the wrong direction in trading. You have to develop and follow trading psychology and risk management.
Many players suffer a phobia of being a loser. In this disorder mental condition, trades cause a Negative impact against them.
For example, they close their trade at 40. Suppose it falls to 39, then gradually 37. Now they try to put trades against their real trading style.
To avoid selling at a risk, they quickly plan to stand for the long term. This proves a heart-burning error.
5. Mismanagement of Record Keeping
While trading, everything is going in an uncertain atmosphere. Markets go up and down. Everything is out of control. Buyers and sellers are strangers.
All the deals are under pressure. Traders don’t care to write their entry/exit on the left/right side.
Without keeping records in dairy, you never get two things:
- Get a chance to earn money.
- Become a successful trader.
On the other hand, a good record keeper makes progress to become a better trader. This record will stop you to repeat your mistakes.
6. Lack of short-term trading strategy
Beginners don’t know the value of short-term trades. They don’t adopt the tiny trades. In this way, they remove their name from the winning trader’s list.
Simply you can say that without learning the ways to trade tiny trades, you are in the hanging position of the market.
How Long Does It Take to Learn Day Trading
Usually, fear or ignorance are the factors that prevent you from being short-term and it takes time to learn day trading.
Going towards shorts has minimum risks than trying long trades. While shorting, non-serious traders fail the game. They become on the hold on the position. Now if the stock gets up, it will make you get out.
Increasing the size of trade will put the traders in the riskiest conditions. So traders should find weak odds to sell shortly less than 100 shares.
7. Participating in Different Trading Zones
Newbies may try their luck in different markets. That looks like:
- Stock to Opportunities
- Opportunities to Currencies
- Currencies to Good Future
Trading different trading terminals biomes, a great blunder of diverting from trade.
It prevents the beginners to get a significant experience of market excels.
8.Under Experienced Day Trading
Day trading is not as easy as it looks like. It can become risky. Mostly seasonal scalpers take this challenge.
Plus, a successful day trader may facilitate the special apparatus. That is less provided to the average trader.
What makes day trading a blunder?
- Expensive day trading workstation (tens of thousands of $ cost)
- Outstanding investment is needed to keep an active day-trading plan.
- Without completing day trading courses goes wrong.
- To maintain your speed nicely you should have $5,000 in your account.
9. Depending on Business News
Novice depends on business news shows to plan income goals. But only a few newsletters are important to get results.
But you have to learn their identification process. Think wisely, if someone gets a secret of more earning stock tilts, trading signals, or a golden tip to make a high jump.
How do they announce it on TV channels? Why they just sell it for$50 /month?
Innocent buddies, they will never open their mouths. They work on becoming a millionaire by this treasure hunting game. When you waste more time watching such business programs.
You get confused to make the right decision. Winners always spend their time initiating and sticking to their personal trade style.
10. Not Considering your timing Zones
The big pitfall of the traders is that they enter their trade without understanding the time horizons. This may close your investment without matching your profile.
In trading, there time some worst time to trade forex. New trades have to know profitable trading session to avoid loses.
Also, frame the timetable of how long you have to save on your business, home and children’s expenditures.
For example: if you want to buy a house, it would be a medium-term timing. Investing for educational expanse would be long -term investment. While savings of 30 years of retirement is the biggest one to invest with a stock exchange.
So, putting trades without understanding timing terms proves a big blunder.
Why Are Most Retailers Usually On The Wrong Side of trade?
Retailers are not failing because of the minimum balance. They blew their accounts due to the reasons below:
- They don’t follow a disciplined strategy.
- Put their trade in a frightful mood.
- Getting started without preparing a plan.
Why Do Most Traders Fail?
Most traders make mistakes that can be avoided. This happens when they don’t care about the trading blunders. The causes behind these blunders are:
- Trading stock without knowing the ABC of trade.
- Prefer a powerful investment in initial trades.
- Not implementing capital management rules.
- Ignoring stop-loss orders.
What to Do When Everything Goes Wrong
Oh, my account is nil! Shit! Here are some things you can apply:
- Never react negatively, don’t lose temperament.
- Be realistic and think positively.
- Solve problems as a challenge.
The above post is talking about you and me. It looks like the market is targeting you directly. As your entry appears in trade the stock goes opposite to you. This situation is so frustrating.
However, some mistakes are the result of the trader’s lack of knowledge and mismanagement. These pitfalls can be removed if detected. So before losing your hair try to understand these errors. So, avoid repeating them in the future.