Novice day traders make huge mistakes and fail to get good outcomes. Some of them repeat their mistakes and after some time, they quit trading by losing the capital. However, as a day trader, if you can reduce your mistakes, you may get several chances to earn money. So, try to pinpoint your major mistakes which you make a lot. Then, you need to take action to stop making mistakes. As a result, you may able to bring good changes to your trading process.
Now, in this post, we will discuss the major day trading mistakes made by newbies. As a trader, you should read this article to avoid making these mistakes in the live field.
Ignore the stop-loss
Most newcomers ignore the stop-loss and face severe losses. As a newbie, you should use the stop-loss which will help you to limit the loss. Sometimes, traders think with the help of mental-stop-loss, they can save their money. But, it will not work in reality. So, being a trader, you have to use the SL and TP price levels to get good rewards in the market. However, some traders change their stop-loss repeatedly. For this reason, they fail to protect their account balance. They become puzzled because of facing the quick changes of the market.
Professionals always suggest the newcomers take the right preparation. To run the trade systematically, as a trader, you need to gain sufficient knowledge. The knowledge will help you to identify the different phases of the market. However, sometimes newcomers do not gather enough information about the market. For this reason, they fail to recognize the scenarios of the market and can’t decide what to do. Find more info about the quality trade execution process and improve your decision-making skills. Study the technical details of the market so that you can take trades with strong logic.
Trading at the wrong time
Sometimes, traders get sick mentally and physically. During this time, they should not place any trades. But, many newcomers do not consider this fact and continue trading. Being a trader, you need to be fit when trading. Otherwise, you have problems adjusting to the market. Do not ignore your mental health as it influences your trading decisions. As a result of poor mental health, traders behave aggressively. For this reason, they face huge problems. So, stop trading when you are ill. At this time, try to take proper rest which will help you to recover soon.
Not practicing properly
Newbies do not focus on improving their skills properly. For this reason, they can’t act strategically. You need to practice properly through the demo account. So, firstly, open a demo account, and start trading. Through practice, you will be able to improve your different trading skills such as your money management skills, risk management skills, technical skills, and so on. By improving these skills, you can easily make profits like the pro traders in Forex market.
Not keeping the trading journal
To reduce the mistakes you make, you need to keep a trading journal. By reviewing the journal regularly, you can identify the major mistakes which will help you to make the right decision. So, develop a trading journal so that you can measure your performances and take the right actions to improve them. However, most traders do not keep a trading journal and can’t know about what mistakes they are making and therefore, they can’t rectify them.
Ignoring the news
Some traders ignore the news and can’t predict the upcoming situation in the market. For this reason, they can’t run their process properly. As a full-time trader, you need to know about the important news. You also need to understand which news is wrong and which news is right. Sometimes, traders become mislead by false news and face loss. Remember, to get the news, you need to keep an economic calendar which will help you to know about important dates.