Many new traders can be overwhelmed by information and commit many mistakes on the road to success. That is why we have compiled a list of ten tips that should help you to avoid a number of common mistakes.
# 10 – Start with to learn the basics
You can’t learn to swim if you jump in the water. A beginner who wants to trade in the currency market is up against this fact and has to overcome this obstacle. Education provides a solid foundation to stand on.
# 9 – Become a master of strategy
One of the biggest mistakes beginners make is that they change the trade practices of the aggressively. They want to try and combine all of the trading strategies that are available and select methods that do not achieve the expected results.
Instead, you can look for a logical, simple and effective strategy that is profitable in the long term, t ex. Price Action. By learning the basics, you can customize it according to his own ability. But the actual game depends on your personal preferences.
# 8 – do not Let yourself be defeated
Market information on available strategies and tips that come from each side can lead to bad decisions. The best way to easily bypass the risk is to find a mentor, based on his experience.
# 7 – the Deal is moving in the opposite direction. No panic!
How many times have emotions affected your trading?
One of the most common mistakes investors make is that they are closing their positions too early. Loss is an integral part of the trade – you simply have to accept it. If a transaction is interrupted at the SL so it will be considered as a deductible (the long road to the development), not as a failed strategy.
If you have set your defensive orders in the right place, so it is nothing you should blame yourself.
# 6 – Focus on Price Action
The advent of the Internet, more and better computers and computer software has enabled more effective communication and information management. The journey in the 1900s was not easy. There were no sophisticated indicators, alerts and signals. The course was based only on changes in price.
Price Action is the most ”natural” handelsmetoden available.
# 5 – be realistic
2000 dollars is not enough to fulfill all of your dreams. This is of course possible, but in very few cases. It required a capital which can make a return sufficient for it to be able to replace gainful employment.
The development cycle includes many mental ”traps” and the errors that affect our decision.
Education had an impact on other variables which in turn can be expected to be beneficial to economic development. But money is not everything, and there shall you remember.
# 4 – remember the commercial moderation
The more you shop, the higher is, of course, your chances to win, or how? Not exactly. Too high a frequency reduces the concentration, break down our business strategy and affect our decisions negatively.
It is better to more accurately filter what happens on the market – shop less, but more effectively and aim towards the goal, but have not the obligation on yourself that you must land exactly there for it to be good. Over-trading is a devastating phenomenon. Many investors are not aware of it until it will affect their trade.
# 3 – Focus on higher ranges
In order to be able to analyze price movements with a certain precision, you should focus on the higher ranges – start with H4, then select D1 and W1. Just the ranges prevents us from the noise and disturbance that occurs during the day (due to, among other important macroeconomic readings).
# 2 – do not use a tight SL
The tighter the SL, the smaller the profits. Such order may increase the risk of loss.
Stop loss should be placed at a safe distance from the starting price.
# 1 – Proper education
Education is important for both novice and highly experienced investors. You learn all the time really – commerce without the appropriate basis can lead to the loss.