Too many trades at the same time and too many trades
This is probably the most classic mistake that 100% of beginners and about 90% of the rest make. It is also not surprising that about 90% of traders lose money in the long run if about 90% of them trade too much. Another interesting tip is that if you find yourself making more than one trade at a time, you are probably trading too much. In fact, there is no logical reason to ever participate in more than one transaction at the same time.

Most people just can’t learn to ignore the temptation to constantly participate in trading, so they come up with all sorts of reasons why they should trade, or invent trading signals that aren’t really there. The cold, harsh truth of all this is that if you don’t learn to control yourself and stop reselling, you will never consistently make money trading in the markets.

You spend too much time thinking about trading and looking at charts

As with excessive trading, you tend to think too much about trading. Traders often make the mistake of spending too much time re-viewing charts, even when there are no obvious price action signals for trading. As a result, what eventually happens is that you enter into a deal that you would not normally enter into if you followed your trading plan.

Try to make trading decisions based on short timeframe charts

One of the biggest mistakes that novice traders make is day trading. Many people hear about “day trading” even before they know much more about it. This will lead you to the wrong path from the very beginning and will start a cycle of trading on short-term frames, such as, for example, 5-minute or 1-minute charts, which will lead to strong excessive trading, gambling. , as well as dependence on trade.

Trade with real money before you test yourself on a demo account

This mistake is like a passed away judgment for your money, but beginners do it again and again. The mistake is to trade with real money even before you try your strategy on a demo account. As a result, several things usually happen; traders are not familiar with the account and how it works, so they make silly mistakes, such as taking more risk than they thought, or entering a stop loss incorrectly, etc. After all, traders usually don’t know how it works, so they make silly mistakes like taking more risk than they thought, or entering a stop loss incorrectly, etc. Of course, this will cause you to lose money.

Being dragged into a “black hole” of distraction from the news

The “black hole” associated with news leaks is a real problem in the world of trading, and if you are not careful, you will fall into it and never get out until all your money is gone.

What happens is that traders end up “looking for reasons” why their trading should work, and as we all know, almost anything can be found on the internet, and you can find a lot of opinions both for and against any argument. or the position they would like to take, including trading.

Not realizing that every trade has a random expectation

The main mistake of thinking that most traders face when trading is that they simply do not understand that every trade they make has approximately equal chances of making a loss or profit. This doesn’t mean that you can’t have a strategy with a high winning percentage, because you can. BUT the essence of trading is that for a given series of trades there will be a random result of profits and losses, which means that you will never know the order of profits and losses in a sample of trades of a certain size. However, if you expect your strategy to win 60% of the time, you can expect that percentage to show up in a fairly large sample size.

Feeling a sense of desperation or urgency for action

The big mistake of thinking that many traders make is feeling “urgent” or “desperate” about their trading and participation in transactions. This is due to the fact that you, in fact, put all your “eggs” in one basket, called a shopping basket. This is a big mistake, because trading is inherently risky and inherently complex, because it requires such mental strength that many people simply do not possess or do not want to develop.

Too many waffles, don’t trust your decisions and stick to them

Waffles:when you make a deal, you should stick to it unless there is some significant shift in price action during the same time period that you made the deal. Please reread this last judgment at least 10 times, let it really affect you, because it is extremely important for your trading career

There is too much focus on “money” and “reward” and not enough focus on the process

As I mentioned at the end of the last paragraph, you need to stay away from yourself and let the PROCESS TAKE OVER. Traders spend too much time focusing on money and rewards, and relatively little time really focusing on the important things. the strategy is to act correctly, stick to it, manage risks, position size, set and forget, etc.

Interfere with transactions after they are over (stop and forget!)

Do you want to mess up your deal and constantly shoot yourself in the foot when it comes to your deals? Well, I have an easy way for you to do it! Just start messing with your trades after you’ve logged in to them! Of course, I am being sarcastic here, but seriously, one of the biggest mistakes that traders make is to interfere with their trades after they have concluded them.

Chasing the signal you missed is a late entry at a bad price.

This happens all the time; you saw a trading setup that you liked, you didn’t enter it for various reasons, then after returned to the charts and saw how the price soared in your favor without your participation. It can drive you crazy. But the last thing you want to do is enter the market after it has already been launched without you.

There is no prior determination of your risk ratio for each trade

Do you know what your risk premium is for a trade? Is this the amount you could risk and sleep soundly at night if you potentially lost? If not, you will need to make some adjustments.

Many traders don’t even sit down and think about how much in dollars they would like to lose for a trade, not to mention whether it will be an amount with which they are OK financially and emotionally if they lose in this transaction. If you haven’t done that and are trading in real time, you will have to stop trading in real time until you figure it out.

Conclusion

Those traders who earn serious money in the markets are not those who never make mistakes and trade “perfectly”, but those who learn to avoid mistakes and learn from them, which were discussed in this lesson. It’s very easy to make the same trading mistakes over and over again until all your trading money is gone. Your goal is to prevent this from happening to you.