Making mistakes in the retail trading industry is very common. You can’t learn a something new without going through the ups and downs. Every Forex trader wants to become a millionaire and change their life. But in reality, more than 90% of the traders are struggling. So, why is the number of successful traders is so low? The only reason is lack of trading discipline and knowledge. The new traders always love to win trades. In fact, they don’t really understand that losing is just a part of this profession. Due to this mentality, they can never embrace the losing trades. They become frustrated and start making mistakes after losing a few trades. On the contrary, the experts always sticks to their trading strategy and make rational decision to recover losses. Let’s learn about the four costly mistakes committed by the rookie traders.
Trading with emotions
As a Forex trader, you can’t become the emotional baggage. You have to understand the importance of strict discipline and proper knowledge. Placing trades with emotions might work for few trades but considering the long-term consequence its nothing but a suicide mission. The market will always move with its rhythm. It doesn’t care about your emotions. No matter how much you pray, things are not going to change. First of all, you should learn the proper way to control your emotions. Emotions have no place in the business industry. You have to stick to your rules and play safe. Stop worrying about the losing trades since you can easily cover up the loss by trading with high-risk reward ratio trade setups.
Trading the lower time frame
Lower time frame trading is extremely popular in spread trading. People often think the more they will trade, the more money they will make. But this eventually leads them to overtrade the market. By overtrading the market you will be exposed to huge risk. The professional traders always trade like a sniper. They know every action will have a strong impact on their investment. So placing low-quality trades is nothing but ruining your career. Instead of using the lower time frame signal, it’s better to switch to the daily time frame. Though daily time frame trading is extremely boring yet the professional traders always prefers it for high-quality trade setups. So try to be long time frame trader and ignore minor trends of the market.
Using too many indicators
This is one of the most common mistakes of novice traders. They often think indicators are the best way to find good trades. But in reality, these are nothing but your trade filter tools. You can’t find any potential trade setups by using the indicators. Instead of relying on tons of indicators start focusing on a few indicators. One or two indicators is enough to safeguard your investment. Never overload your forex trading chart patterns with tons of indicators. This will never help you to make any real progress. Always remember, trading is all about keeping things organized. If you keep things in a haphazard way you can’t make any real progress in spread betting.
Trading with a low-end broker
This is the most common mistakes made by every novice trader. They are so much biased with the trading strategy they even forget to ensure the safety of their investment. It’s true the low-end broker will give you many bonus offer, but this will never be helpful for you. For withdrawing the bonus amount you will have to overtrade the market. Hats why all the successful traders prefer brokers like ETX Capital. They are one of the best brokers in today’s world and you can easily trade with a big sum of money. As their client, you won’t have any problem with their trading environment. Most importantly, they have a very good customer support team who will solve your problems with the high level of priority. So choose your broker wisely.